We’re back with a second installment of our U.S. Space Force (USSF) series! Our last blog featured an overview of the competitive market and select high-value opportunities within the agency. In this blog, we are analyzing USSF as a customer, including its budget’s impact on contract spending and major program offices responsible for a few flagship programs and strategic initiatives. Use this blog as a quick go-to guide to understand and define the top USSF spenders.
In analyzing USSF’s budget over its first five years, funding in 2020 went toward the operation to establish its headquarters and policies, procedures and systems to operate. In 2021, funding expanded to $15.4 billion with the transfer of missions, forces and programs from the U.S. Department of the Air Force to USSF. By 2024, the budget was nearly double to $26.3 billion with approximately two-thirds of funding allocated to research, development, test and evaluation (RDT&E). This allocation is largely due to the identification of China and Russia as threats to U.S. space capabilities, resulting in the promotion of U.S. efforts focused on building resilient space forces, satellite constellations, ground stations, networks and data links. The 2025 budget request remained relatively stable to 2024 and includes an emphasis on proliferation and simpler, commercially derived spacecraft.
This budget increase over the last five years coincides with a significant increase in contract spending. Almost every top competitor within the agency has realized more actual funding in FY2024 compared to FY2020, which can be attributed to USSF’s prioritization on developing and deploying satellite constellations for missile warning, tracking and defense and the establishment of the National Security Space Launch (NSSL) program in 2024.
The NSSL program is managed by Space Systems Command’s Assured Access to Space Program Executive Office (SSC/AATS) in partnership with the National Reconnaissance Office (NRO) and used for space launch vehicles for satellites, critical for maintaining the U.S.’s advantage in space. As mentioned in our previous blog, Blue Origin, SpaceX, and United Launch Services received a $5.6 billion multiple award contract for the NSSL Phase 3 Lane 1 procurement, intended for launch services delivering NSS payloads into their intended orbits.
Top USSF Spenders
USSF’s overall organization is comprised of three major field commands – Space Operations Command (SpOC), Space Systems Command (SSC), and Space Training and Readiness Command (STARCOM). SSC and its corresponding Program Executive Offices (PEOs) spend the highest amount in actual contract value, as the Command is responsible for acquiring and delivering resilient warfighting capabilities, including satellite systems, launch services, and cyber operations.
SSC manages six Program Executive Offices. Notable under SSC from a spending perspective is the Battle Management Command, Control and Communications (BMC3) Program Executive Office, which is responsible for advancing operational and tactical command and control (C2) capabilities for space and leading the modernization and sustainment of the Satellite Control Network (SCN).
BMC3 is followed by PEO Military Communications and PNT (MCPNT), PEO Assured Access to Space (AATS), PEO Space Sensing (SN). All are responsible for developing and deploying a proliferated constellation of low-Earth orbit satellites for missile warning, tracking and data transport.
Space Development Agency (SDA) has noteworthy spending as indicated above as it works in parallel with SSC.
SpOC also makes up a significant portion of funding, which is the Command responsible for organizing, training and equipping space forces to support Combatant Commanders, ensuring operational readiness and conducting space operations. SpOC includes Space Launch Delta 30 and 45.
Next is PEO Operational Test & Training Infrastructure (OTTI) within SSC, which is responsible for integrating and synchronizing the acquisition, development, and sustainment of integrated test and training capabilities to ensure the delivery of fully burdened force designs, and finally, PEO Space Domain Awareness & Combat Power, which is focused on delivering cyber, ground- and space-based systems that rapidly detect, warn, characterize, attribute and predict threats to national allied and commercial space systems, while also providing National Security deterrence capabilities.
Note that STARCOM is responsible for a smaller amount of funding not depicted on the graph but focuses on the training and readiness of Guardians, including developing digital training environments, simulators, ranges and testing equipment.
The FedSavvy Strategies Takeaway
- As the USSF continues to mature and the space domain grows in strategic importance, we will likely continue to see USSF’s contracting spend increase as the agency prioritizes the development and deployment of satellite constellations, and the vehicles used for satellite launches.
- The NSSL drove a significant surge in contract spending in FY2024, which includes more contract opportunities centered around launching military satellites and other assets.
- SSC and its associated PEOs are currently the highest contracting spenders because of their focus on capability development vs. SpOC and STARCOM’s focus on training and readiness.
- USSF’s future budget and spending appears to be well insulated from the impact of DOGE that many other agencies face.
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