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Space Force Awards $2.29 Billion SDN Backbone Contract to SpaceX

The award is meant to speed delivery of a laser‑linked low‑Earth‑orbit mesh that will carry near‑real‑time sensor and targeting data to weapons and missile defenses.

A person stands at a SpaceX corporate office, as the company prepares to file for an initial public offering (IPO), in Starbase, Texas, U.S. April 21, 2026. REUTERS/Carlos Barria
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Overview

  • The Space Force on May 26 awarded SpaceX a $2.29 billion firm‑fixed‑price Other Transaction Authority delivery order to build the Space Data Network (SDN) Backbone prototype.
  • The contract requires SpaceX to deliver a fully operational prototype capability by the end of 2027 and uses the OTA vehicle to accelerate development and fielding.
  • SpaceX will base the backbone on its Starshield/Starlink technology and expand optically linked satellites so data can move between spacecraft in orbit without routing through ground stations.
  • The SDN Backbone will be integrated with the Space Development Agency’s Transport Layer to enable near‑real‑time “sensor‑to‑shooter” routing of missile warning, tracking and targeting data to interceptors and forces.
  • The award gives SpaceX a large incumbency role that has raised congressional and industry concerns about concentration, so the Space Force has formed an SDN consortium and plans to add more vendors while seeking roughly $1.5 billion in FY2027 RDT&E and additional procurement funds to expand the mesh.