U.S. Space Force Consolidates Contracts with SpaceX Amid Industry Changes
The U.S. Space Force awarded SpaceX contracts totaling $6.45 billion within four days, reshaping defense procurement. The Space Development Agency is being dissolved, limiting competition in the low Earth orbit defense layer.
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Between May 26 and May 29, 2023, the U.S. Space Force awarded SpaceX two significant contracts totaling $6.45 billion for projects on the Starshield platform, while simultaneously dissolving the Space Development Agency (SDA) and the Space Rapid Capabilities Office.
The SDA, designed to promote competition among multiple vendors, is being integrated into the Space Force's acquisition structure, effectively consolidating procurement under SpaceX. Additionally, a static fire test failure of Blue Origin's New Glenn rocket has rendered an alternative heavy-lift option unavailable, leaving ULA Vulcan and SpaceX as the primary service providers. This consolidation risks limiting market competition and could impact future defense capabilities as other contractors may struggle to meet the integration requirements before the 2027 operational prototype deadline.
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