Commercial Companies Vie for $4 Billion Contract in Space Force’s Satellite Communication Competition

The United States military’s strategic imperative for secure, jam-resistant communications within battlefield environments is being addressed through the Space Force’s Protected Tactical Satcom (PTS) program. This initiative aims to establish a robust satellite-based communication network for tactical forces.

As part of this endeavor, the Space Force has already granted contracts to defense industry heavyweights Boeing and Northrop Grumman for the development of prototype satellite payloads destined for geostationary orbit.

The program is now progressing into a new phase, with five additional contracts being awarded on Tuesday. These contracts are assigned to Boeing, Northrop Grumman, Viasat, Intelsat, and the startup Astranis—based in San Francisco. Notably, Intelsat will source its satellite bus from K2 Space, another venture-backed startup.

The initial awards collectively amount to $37.3 million. However, given the program’s $4 billion award ceiling, the winners stand to secure significantly larger defense contracts. Each company will develop their respective architectures through January 2026. Subsequently, the Space Force will select one design and award a follow-on contract for the launch of the first satellite, scheduled for 2028. Additional production awards are anticipated in 2028 as well.

The PTS-G contracts represent a significant shift from traditional military procurement methods for geostationary satellites, which have historically entailed prolonged timelines between contract award and launch, and costs ranging from hundreds of millions to over a billion dollars per spacecraft.

In contrast, the Space Force is seeking to capitalize on the agility of commercial entrants and foster competition by engaging multiple vendors during the initial phase of the program. As Program Executive Officer Cordell DeLaPena Jr. stated in a press release, “Our PTS-G contract transforms how SSC acquires SATCOM capability for the warfighter. The incorporation of commercial baseline designs to meet military capability significantly enhances the Space Force’s speed and efficiency to add capability to meet emerging threats.”