National Security Space Launch Market Insights

SpaceX, Blue Origin, and United Launch Alliance (ULA) have been selected to provide launch services for the U.S. Space Force as part of the National Security Space launch (NSSL) Phase 3 launch services program. The contracts are worth up to $5.6 billion across fiscal years 2025 through 2029. At least 30 NSSL Lane 1 missions heading for low Earth orbit will be launched over the five-year span. National security missions include launches of classified satellites for U.S. agencies such as the Missile Defense Agency, Space Development Agency, and National Reconnaissance Office.

Jeff Bezos' Blue Origin has been selected for national security launch contracts for the first time. The company's New Glenn heavy-lift rocket's first flight is scheduled for August 2024 to send NASA's two-spacecraft EscaPADE mission to Mars. Meanwhile, ULA will aim to fly its new Vulcan rocket regularly after a successful first launch in January. The NSSL Phase 3 aims to increase competition to drive down launch costs for national security payloads.

The U.S. Space Systems Command has contracted Blue Origin, SpaceX, and United Launch Services under a multi-billion-dollar deal for the NSSL Phase 3 Lane 1 program. This contract includes a five-year ordering period extending through June 2029, with an option for an additional five years. Seven offers were received for the program. Blue Origin and SpaceX, founded by Jeff Bezos and Elon Musk, respectively, are looking to commercialize space-access capabilities, with interests in the defense sector.

Chief of Space Operations Gen Chance Saltzman emphasized the importance of space superiority for the U.S., stating that without it, the country would be unable to deter rivals and conflicts. The U.S. Space Systems Command is diversifying launch options through the NSSL Phase 3 program, aiming to have at least three providers fully capable of meeting all NSSL requirements by the end of the program. Lane 1 is open to all eligible bidders, with an opportunity for annual on-ramping for emerging providers. Lane 2 will competitively award contracts to three launch service providers for missions requiring full mission assurance and launches to more challenging orbits.