The U.S. Space Force has awarded Blue Origin, SpaceX and United Launch Alliance spots on a potential 10-year, $5.6 billion contract to provide launch services as part of the third phase of the National Security Space Launch program.
The Department of Defense said Thursday the multiple-award, indefinite-delivery/indefinite-quantity contract is for Lane 1 of the NSSL Phase 3 program, which will procure launch services to deliver national security payloads to their intended orbits.
Space Systems Command, Assured Access to Space, received seven offers for the firm-fixed-price IDIQ contract and obligated $8 million in fiscal 2024 space procurement funds at the time of award.
The contract has a five-year ordering period that will run through June 2029 and an option term of five years. Work location will be determined at the task order level.
Blue Origin will get a $5 million task order to perform an initial capabilities assessment and explain its approach to tailored mission assurance.
Incumbent NSSL Phase 2 contractors SpaceX and ULA – a joint venture of Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT), will receive task orders worth $1.5 million each.
Dual-Lane Approach to NSSL Phase 3
The Space Force has adopted a dual-lane approach to the NSSL Phase 3 acquisition effort to ensure assured access to space and meet warfighter needs.
In a solicitation notice published in October for Lane 1, SSC said it is interested in more risk-tolerant space vehicles launching to commercial orbits.
The command noted that it will conduct an on-ramping process for emerging vendors and systems by reopening the Lane 1 solicitation on an annual basis and will use a launch service task order tiered MA framework to address the risk posture of each mission or bundle of missions.
According to SSC, the Lane 1 on-ramp process will occur in the first quarter of fiscal year 2025. At least 30 missions are expected to be competed under this lane over the base ordering period.
For the second lane, SSC plans to award up to three FFP indefinite-delivery requirements contracts with a five-year ordering term covering launch services, special studies, mission unique services, fleet surveillance, launch services support and early integration studies.
In Lane 2, the top two launch service providers will use the 60/40 share ratio to split about 42 missions between FY 2025 and FY 2029. The third-best value launch provider will get up to seven Lane 2 missions starting in FY 2026.
Under NSSL Phase 3 Lane 2, the contractor should have the capability to perform at least eight national security launch missions a year. This lane will require higher performance, SSC-certified space vehicles launching payloads to more stressing orbits.
SSC intends to award Lane 2 contracts by fall 2024.
