January 10, 2026
Finance

SpaceX Secures $739 Million Contract for U.S. Space Force Military Launches

New task orders from U.S. Space Force’s Space Systems Command enhance missile tracking and reconnaissance capabilities

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Summary

SpaceX has been awarded contracts totaling $739 million by the U.S. Space Force to conduct multiple military launches under the National Security Space Launch Phase 3 Lane 1 program. These task orders aim to strengthen the U.S. military’s missile warning systems and planetary tracking infrastructure, supporting key agencies such as the Space Development Agency and the National Reconnaissance Office. The launches are scheduled to commence in late fiscal year 2026 through fiscal year 2028, involving space vehicles developed by contractors including L3Harris, Millennium Space Systems, and Lockheed Martin.

Key Points

SpaceX has been granted $739 million in contracts by the U.S. Space Force for multiple military launches under the NSSL Phase 3 Lane 1 program.
Nine task orders focus on deploying satellites designed for missile warning and tracking to strengthen national defense capabilities.
The launches will support the Space Development Agency and National Reconnaissance Office with missions scheduled from late fiscal year 2026 through 2028.
SpaceX has maintained a competitive edge over other providers such as Blue Origin and United Launch Alliance in securing Pentagon contracts for critical military missions.

SpaceX, Elon Musk's aerospace manufacturer and space transport services company, has recently secured a contract from the U.S. Space Force valued at $739 million. This agreement encompasses several military launch missions aimed at bolstering the United States' missile warning and tracking capabilities. The contract is a result of nine distinct task orders issued by the U.S. Space Force’s Space Systems Command (SSC) under the National Security Space Launch (NSSL) Phase 3 Lane 1.

The series of task orders not only reinforces the Space Force's objectives but also supports functions for the Space Development Agency (SDA) and the National Reconnaissance Office (NRO). Under the contract terms, SpaceX is responsible for executing the SDA-2, SDA-3, and NTO-5 mission launches. These launches are planned over an extended timeline, starting in the fourth quarter of fiscal year 2026 (4QFY26) for the SDA-2 missions, moving into the third quarter of fiscal year 2027 (3QFY27) for SDA-3, and continuing with NTO-5 missions scheduled in the first quarter of fiscal year 2027 (1QFY27) and the second quarter of fiscal year 2028 (2QFY28).

The SDA-2 task order requires two launches that will place into orbit 18 Tranche 2 Tracking Layer satellites, each manufactured by L3Harris. Alongside these, a separate launch will carry eight 'Fire-control On Orbit-support-to-the-war Fighter' (F2) satellites produced by Millennium Space Systems. The SDA-3 task order also involves two launches, focusing on deploying 18 additional Tranche 2 Tracking Layer satellites, this time provided by Lockheed Martin. These satellites play a critical role in monitoring and identifying missile threats and enhancing situational awareness in space.

Colonel Matt Flahive, who serves as the system program director for Launch Acquisition in the U.S. Space Force, emphasized the importance of these task orders, stating, “Our mission to deliver national defense capabilities to the joint force is achieved with each task order we award.” This underscores the strategic value placed on these launches in advancing the United States’ defense systems and space-based tracking proficiency.

Earlier developments show sustained momentum for SpaceX within the Pentagon's contracting landscape. In October 2025, SpaceX secured the majority of critical military missions commissioned by the U.S. Space Force, winning five out of seven contests. This success has put SpaceX ahead of its competitors, including Jeff Bezos' Blue Origin and United Launch Alliance (ULA). Observers in the investment community note the instrumental role federal contracts play in SpaceX's growth. Ross Gerber, co-founder of Gerber Kawasaki, has pointed out that government contracts are significantly contributory to the business achievements of both SpaceX and Tesla.

Furthermore, SpaceX was awarded another Pentagon contract in 2024 to expand Ukraine’s access to its Starshield satellite network. This contract supports the deployment of an additional 2,500 Starlink terminals, enhancing secure communications capabilities for Ukrainian forces.

This extensive portfolio of contracts highlights SpaceX’s pivotal role in advancing U.S. national security interests through space-based launch services, satellite deployment, and secure communication networks.

Risks
  • The ambitious timeline stretching from fiscal year 2026 to 2028 may present execution and scheduling challenges for the launches.
  • Dependence on contractors like L3Harris, Millennium Space Systems, and Lockheed Martin carries potential supply or production risks for satellite components.
  • Competition from other aerospace companies remains a constant factor, as demonstrated by recent contract contests.
  • The success of SpaceX in securing follow-on contracts is contingent upon satisfactory mission performance and adherence to U.S. Space Force requirements.
Disclosure
Education only / not financial advice
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