Here are the reasons SpaceX won nearly all recent military launch contracts

In the last week, the US Space Force awarded SpaceX a $5.9 billion deal to make Elon Musk's space company the Pentagon's leading launch provider, and then it assigned the vast majority of this year's most lucrative launch contracts to SpaceX.

On top of these actions, the Space Force reassigned the launch of a GPS navigation satellite from United Launch Alliance's long-delayed Vulcan rocket to fly on SpaceX's Falcon 9. ULA, a joint venture between Boeing and Lockheed Martin, is SpaceX's chief US rival in the market for military satellite launches.

Given the close relationship between Musk and President Donald Trump, it's not out of bounds to ask why SpaceX is racking up so many wins. Some plans floated by the Trump administration involving SpaceX in recent months have raised concerns over conflicts of interest.

Tory Bruno, ULA's president and CEO, doesn't seem too worried in his public statements. In a roundtable with reporters this week at the annual Space Symposium conference in Colorado, Bruno was asked about Musk's ties with Trump.

"We have not been impacted by our competitor's position advising the president, certainly not yet," Bruno said. "I expect that the government will follow all the rules and be fair and follow all the laws, and so we're behaving that way."

It's a separate concern whether the Pentagon should predominantly rely on a single provider for access to space, be it a launch company like SpaceX led by a billionaire government insider or a provider like ULA that, so far, hasn't proven its new Vulcan rocket can meet the Space Force's schedules.

Military officials are unanimous in their answer to that question: "No." That's why the Space Force is keen to add to the Pentagon's roster of launch providers. In the last 12 months, the Space Force has brought Blue Origin, Rocket Lab, and Stoke Space to join SpaceX and ULA in the mix for national security launches.

Results matter

The reason Bruno can say Musk's involvement in the Trump administration so far hasn't affected ULA is simple. SpaceX is cheaper and has a ready-made line of Falcon 9 and Falcon Heavy rockets available to launch the Pentagon's satellites. ULA's Vulcan rocket is now certified to launch military payloads, but it reached this important milestone years behind schedule.

The Pentagon announced Friday that SpaceX, ULA, and Blue Origin—Jeff Bezos' space company—won contracts worth $13.7 billion to share responsibilities for launching approximately 54 of the military's most critical space missions from 2027 through 2032. SpaceX received the lion's share of the missions with an award for 28 launches, while ULA got 19. Blue Origin, a national security launch business newcomer, will fly seven missions.

This comes out to a 60-40 split between SpaceX and ULA, not counting Blue Origin's seven launches, which the Space Force set aside for a third contractor. It's a reversal of the 60-40 sharing scheme in the last big military launch competition in 2020, when ULA took the top award over SpaceX. Space Force officials anticipate Blue Origin's New Glenn rocket will be certified for national security missions next year, allowing it to begin winning launch task orders.

Bruno said he wasn't surprised with the outcome of this year's launch competition, known as Phase 3 of the National Security Space Launch (NSSL) program. "We're happy to get it," he said Monday.

"I felt that winning 60 percent the first time was a little bit of an upset," Bruno said of the 2020 competition with SpaceX. "I believe they expected to win 60 then ... Therefore, I believed this time around that they would compete that much harder, and that I was not going to price dive in order to guarantee a win."

While we know roughly how many launches each company will get from the Space Force, the military hasn't determined which specific missions will fly with ULA, SpaceX, or Blue Origin. Once per year, the Space Force will convene a "mission assignment board" to divvy up individual task orders.

Simply geography

Officials announced Monday that this year's assignment board awarded seven missions to SpaceX and two launches to ULA. The list includes six Space Force missions and three for the National Reconnaissance Office (NRO).

SpaceX's seven wins are worth a combined $845.8 million, with an average price of $120.8 million per launch. Three will fly on Falcon 9 rockets, and four will launch on SpaceX's Falcon Heavy.

• NROL-97 on a Falcon Heavy from Cape Canaveral
• USSF-15 (GPS IIIF-3) on a Falcon Heavy from Cape Canaveral
• USSF-174 on a Falcon Heavy from Cape Canaveral
• USSF-186 on a Falcon Heavy from Cape Canaveral
• USSF-234 on a Falcon 9 from Cape Canaveral
• NROL-96 on a Falcon 9 from Vandenberg
• NROL-157 on a Falcon 9 from Vandenberg

The Space Force's two orders to ULA are valued at $427.6 million, averaging $213.8 million per mission. Both missions will launch from Florida, one with a GPS navigation satellite to medium-Earth orbit and another with a next-generation geosynchronous missile warning satellite named NGG-2.

• USSF-49 (GPS IIIF-2) on a Vulcan from Cape Canaveral
• USSF-50 (NGG-2) on a Vulcan from Cape Canaveral

So, why did ULA only get 22 percent of this year's task orders instead of something closer to 40 percent? It turns out ULA was not eligible for two of these missions because the company's West Coast launch pad for the Vulcan rocket is still under construction at Vandenberg Space Force Base. The Space Force won't assign specific West Coast missions to ULA until the launch pad is finished and certified, according to Brig. Gen. Kristin Panzenhagen, chief of the Space Force's "Assured Access to Space" office.

Vandenberg, a military facility on the Southern California coast, has a wide range of open ocean to the south, perfect for rockets delivering payloads into polar orbits. Rockets flown out of Cape Canaveral typically fly to the east on trajectories useful for launching satellites into the GPS network or into geosynchronous orbit.

"A company can be certified for a subset of missions while it continues to work on meeting the certification criteria for the broader set of missions," Panzenhagen said. "In this case, ULA was not certified for West Coast launches yet. They’re working on that."

Because of this rule, SpaceX won task orders for the NROL-96 and NROL-157 missions by default.

The Space Force's assignment of the USSF-15 mission to SpaceX makes some sense, too. Going forward, the Space Force wants to have Vulcan and Falcon Heavy as options for adding to the GPS network. This will be the first GPS payload to launch on Falcon Heavy, allowing SpaceX engineers to complete a raft of upfront analysis and integration work. Engineers won't have to repeat this work on future Falcon Heavy flights carrying identical GPS satellites.

From monopoly to niche

A decade ago, ULA was the sole launch provider to deploy the Pentagon's fleet of surveillance, communication, and navigation satellites. The Air Force certified SpaceX's Falcon 9 rocket for national security missions in May 2015, opening the market for competition for the first time since Boeing and Lockheed Martin merged their rocket divisions to create ULA in 2006.

ULA's monopoly, which Bruno acknowledged, has now eroded into making the company a niche player in the military launch market.

"A monopoly is not healthy," he said. "We were one for a few years before I came to ULA, and that was because no one else had the capability, and there weren’t that many missions. There weren’t enough to support many providers. There are now, so this is better."

There are at least a couple of important reasons the Space Force is flying more missions than 10 or 20 years ago.

One is that Pentagon officials believe the United States is now in competition with a near-peer great power, China, with a rapidly growing presence in space. Military leaders say this requires more US hardware in orbit. Another is that the cost of launching something into space is lower than it was when ULA enjoyed its dominant position. SpaceX has led the charge in reducing the cost of accessing space, thanks to its success in pioneering reusable commercial rockets.

Many of the new types of missions the Space Force plans to launch in the next few years will go to low-Earth orbit (LEO), a region of space a few hundred miles above the planet. There, the Space Force plans to deploy hundreds of satellites for a global missile detection, missile tracking, and data relay network. Eventually, the military may place hundreds or more space-based interceptors in LEO as part of the "Golden Dome" missile defense program pushed by the Trump administration.

Traditionally, the military has operated missile tracking and communications satellites in much higher geosynchronous orbits some 22,000 miles (36,000 kilometers) over the equator. At that altitude, satellites revolve around the Earth at the same speed as the planet's rotation, allowing a spacecraft to maintain a constant vigil over the same location.

The Space Force still has a few of those kinds of missions to launch, along with mobile, globe-trotting surveillance satellites and eavesdropping signals intelligence spy platforms for the National Reconnaissance Office. Bruno argues ULA's Vulcan rocket, despite being more expensive, is best suited for these bespoke missions. So far, the Space Force's awards seem to bear it out.

"Our rocket has a unique niche within this marketplace," Bruno said. "There really are two kinds of missions from the rocket’s standpoint. There are ones where you drop off in LEO, and there are ones where you drop off in higher orbits. You design your rockets differently for that. It doesn’t mean we can’t drop off in LEO, it doesn’t mean [SpaceX] can’t drop off in a higher energy orbit, but we’re more efficient at those because we designed for that."

There's some truth in that argument. The Vulcan rocket's upper stage, called the Centaur V, burns liquid hydrogen fuel with better fuel efficiency than the kerosene-fueled engine on SpaceX's upper stage. And SpaceX must use the more expensive Falcon Heavy rocket for the most demanding missions, expending the rocket's core booster to devote more propellant toward driving the payload into orbit.

SpaceX has launched at a rate nearly 34 times higher than United Launch Alliance since the start of 2023, but ULA has more experience with high-energy missions, featuring more complex maneuvers to place military payloads directly into geosynchronous orbit, and sometimes releasing multiple payloads at different locations in the geosynchronous belt.

This is one of the most challenging mission profiles for any rocket, requiring a high-endurance upper stage, like Vulcan's Centaur V, capable of cruising through space for eight or more hours.

SpaceX has flown a long-duration version of its upper stage on several missions by adding an extended mission kit. This gives the rocket longer battery life and a custom band of thermal paint to help ensure its kerosene fuel does not freeze in the cold environment of space.

On the other hand, the overwhelming majority of SpaceX's missions target low-Earth orbit, where Falcon 9 rockets deploy Starlink Internet satellites, send crews and cargo to the International Space Station, and regularly launch multi-payload rideshare missions. These launches maximize the Falcon 9's efficiencies with booster recovery and reuse. SpaceX is proficient and prolific with these missions, launching them every couple of days. Launch, land, repeat.

"They tend to be more efficient at the LEO drop-offs, I’ll be honest about that," Bruno said. "That means there’s a competitive space in the middle, and then there’s kind of these end cases. So, we’ll keep winning when it’s way over in our space, they will win when it’s way over in theirs, and then in the middle it’s kind of a toss-up for any given mission."

Recent history seems to support Bruno's hypothesis. Last year, SpaceX and ULA competed head-to-head for nine specific launch contracts, or task orders, in a different Space Force competition. The launches will place national security satellites into low-Earth orbit, and SpaceX won all nine of them. Since 2020, ULA has won more Space Force task orders than SpaceX for high-energy missions, although the inverse was true in this year's round of launch orders.