Overview
- Space Force awarded SpaceX a $2.29 billion Other Transaction Authority delivery order on Tuesday, May 26, 2026, that requires a fully operational SDN Backbone prototype by the end of 2027.
- The SDN Backbone will use Starshield‑derived proliferated LEO satellites with optical inter‑satellite laser links and advanced encryption to route military data in space and reduce reliance on ground relays.
- The system is meant to act as the high‑capacity backhaul for a broader Space Data Network and to operate with the Space Development Agency’s Transport Layer to enable near‑real‑time 'sensor‑to‑shooter' data flows.
- The award concentrates a large share of future LEO procurement with SpaceX after SDA’s earlier multi‑vendor Tranche 1 and 2 buys, so the Space Force has created an SDN consortium and says it will add more participants this summer to promote interoperability and competition.
- The administration’s FY2027 budget request seeks about $1.5 billion for SDN research and additional multi‑billion procurement funding to accelerate expansion, a move that could speed fielding but deepen Pentagon dependence on a single contractor.