United Launch Services Secures $1.1B for National Security Space Launch

United Launch Services LLC, based in Centennial, Colorado, has been awarded a $1.1 billion modification to an existing contract for National Security Space (NSS) Launch Phase Two services.

This adjustment increases the total contract value from $4 billion to $4.5 billion. The contract covers launch services from fiscal 2020 to fiscal 2024, with launches planned between fiscal 2022 and fiscal 2027. Work locations include Centennial, Colorado; Cape Canaveral Space Force Station, Florida; and Vandenberg Space Force Base, California, with completion expected by March 31, 2028. The Space Systems Command at Los Angeles Air Force Base is overseeing the contract.

In June 2024, the U.S. Space Force awarded contracts potentially worth $5.6 billion to Blue Origin, SpaceX, and United Launch Alliance (ULA) under the National Security Space Launch (NSSL) Phase 3 program. This decision, announced on June 13, marks a strategic move to increase competition and reduce launch costs within the U.S. launch sector.

Blue Origin, founded by Jeff Bezos, secured its first opportunity to launch national security satellites, marking a milestone with its New Glenn heavy-lift rocket, expected to launch later this year. Previously, ULA and SpaceX were the primary providers for Pentagon launches under Phase 2, with ULA receiving 60% of the missions until 2027.

The Phase 3 program, starting in fiscal 2025 and extending through 2029, divides launches into two categories: Lane 1 for less demanding launches and Lane 2 for heavy-lift missions. The program aims to ensure reliable access to space and introduce new competitors into the market.

Blue Origin will receive $5 million for an initial assessment of its capabilities, while SpaceX and ULA will receive $1.5 million each. The first task orders include launches for the U.S. Space Force and the National Reconnaissance Office. Lane 2 providers for more complex missions will be selected in the fall, with up to three contracts expected.