Overview
- The Space Force announced on Tuesday that it awarded SpaceX a $2.29 billion firm‑fixed‑price Other Transaction Authority delivery order to build the Space Data Network Backbone.
- SpaceX must deliver a fully operational prototype by the end of 2027 under the accelerated schedule set by the Space Systems Command.
- The backbone will use SpaceX’s Starshield satellites with optical inter‑satellite laser links and advanced encryption to route high‑capacity, low‑latency data and will be integrated with the Space Development Agency’s Transport Layer.
- Officials created an SDN consortium to set interoperability standards and said more participants will be added this summer even as lawmakers and analysts warn the award concentrates a large share of future LEO procurement with SpaceX.
- The move shifts the Pentagon from SDA’s earlier multi‑vendor Transport Layer buys toward a commercial backhaul model and could speed sensor‑to‑shooter capabilities while raising questions about competition, resilience, and which companies will build the wider mesh.