SpaceX secures $5.9 billion in military launch contracts

On April 4, 2025, the US Space Force announced the awarding of $13.7 billion in launch contracts to three companies: SpaceX, United Launch Alliance (ULA), and Blue Origin. This decision is part of the military's efforts to ensure reliable access to space for defense purposes well into the next decade. SpaceX is set to receive $5.9 billion, while ULA will gain $5.4 billion, and Blue Origin is set for $2.4 billion. The contracts include crucial launches for Pentagon missions through the National Security Space Launch program, which underscores the increasing reliance on commercial space capabilities. SpaceX's dominance in the launch sector has grown substantially since it began competing for military contracts, having previously sued the Air Force to gain access to lucrative military launches. The company has successfully completed a significant number of missions using its Falcon 9 rocket and has earned a reputation for reliability that rivals that of ULA. As a result of this competition, SpaceX has secured over 40% of Pentagon orders made through the National Security Space Launch program, creating a stable duopoly in military launch services alongside ULA. Recent contract awards suggest that ULA has been struggling with delays in the development of its Vulcan rocket, positively affecting SpaceX's positioning. The Space Force adjusted its decisions to award additional missions to SpaceX in light of these delays. Going forward, ULA plans to utilize its Vulcan rocket for upcoming military launches, although it has so far only completed a limited number of missions with this vehicle. Blue Origin is still undergoing the certification process necessary to handle national security launches and needs to achieve further successful test flights of its New Glenn rocket before being fully certified. The contracts reflect a notable shift from initial expectations regarding Phase 2 contracts, which foresaw ULA receiving the majority of orders. Instead, SpaceX's proven ability to launch sensitive payloads and its competitive service pricing led to a reallocation of missions. This strategic decision supports the military's goals for enhanced operational readiness while ensuring a robust industrial base. The contracts will enable SpaceX and ULA to manage complex launches that are vital for national security in the coming years.