SpaceX awarded $6.45 billion in Space Force launch contracts ahead of IPO
On 29 May, the US Space Force's Space Systems Command (SSC) announced the share allocations in the final round of the multi-year National Security Space Launch Phase 3 (NSSL Phase 3) contract, divided between SpaceX, United Launch Alliance (ULA) and Blue Origin. According to TechCrunch reporter Aria Alamalhodaei, SpaceX took the largest share at $6.45 billion.
The NSSL Phase 3 programme covers the 2025-2029 period of US national security space missions. The total programme value is approximately $13.5 billion; SpaceX's $6.45 billion share corresponds to 48% of the total. ULA placed second with $3.93 billion, while Blue Origin came third with $2.5 billion. The contracts will formally take effect within 2026.
SSC commander Lieutenant General Philip Garrant said in a statement, 'Having three companies in a competitive framework provides both cost competition and capability diversity. A multi-supplier approach is critical for national security missions to occur on schedule.' The contract covers SpaceX's Falcon 9 and Falcon Heavy, ULA's Vulcan Centaur and Blue Origin's New Glenn rockets.
On the SpaceX side, the contract forms an important reference point in pre-IPO valuation. According to TechCrunch's valuation analysis, the $13.5 billion NSSL Phase 3 total programme is a significant contribution to SpaceX's total annual revenue (estimated at about $14 billion in 2025). The company is preparing a confidential S-1 filing with the SEC in September 2026.
On the Blue Origin side, the contract is an important encouraging signal. The New Glenn rocket's first launch attempt on 28 May failed and the second stage returned to the Atlantic. Company spokesperson Janet Karika said, 'This contract reinforces Blue Origin's position in the national security space sector; analysis of the launch issues is continuing and the next launch schedule will be announced soon.'
On the ULA side, CEO Tory Bruno said in a statement, 'We at ULA have a reliability-based approach. The success of the Vulcan Centaur rocket demonstrates our capability to provide the Pentagon with secure national security space access.' ULA is a Boeing-Lockheed Martin joint venture and has carried out more than 100 national security launches in the last 5 years.
On the market side, BTIG analyst Andre Madrid said in a note to clients, 'The NSSL Phase 3 contract is a positive data point for SpaceX's IPO valuation metrics. The Pentagon's multi-supplier strategy provides long-term stability for all three players in the sector.' Wedbush analyst Dan Ives said SpaceX's IPO has maintained its likely $500 billion valuation target.
The Department of Defense's fiscal 2025 space budget is $27.2 billion; approximately 50% of this figure is allocated to launch infrastructure. The US House Armed Services Committee (HASC) spokesperson said in a statement, 'The NSSL Phase 3 framework is critical for the US to maintain space superiority.' The committee will continue to oversee the programme.
In the international space competition framework, China's CASC and Russia's Roscosmos space agencies also make similar billion-dollar annual investments in their national security space programmes. The European Union's Ariane 6 and ESA satellite systems such as Galileo, Copernicus and EGNOS are important for strategic autonomy.
In terms of SpaceX's IPO planning, the NSSL Phase 3 contract is a reference that will increase the visibility of institutional revenue streams. About 35% of the company's estimated 2025 revenue comes from institutional clients such as the Pentagon and NASA; Starlink satellite internet service is the principal source of consumer-centred revenue. SpaceX's performance in the end-2026 IPO will be closely linked to the market valuation of this combination. This article is not investment advice.