SpaceX has won a lucrative contract to provide the US military with a means of distributing space-based sensing and targeting data, forming the "backbone" of a rearchitected network after separate Pentagon initiatives stalled, officials announced Tuesday.
Space Systems Command, the Space Force's primary procurement and acquisition center, announced the $2.29 billion firm-fixed-price agreement, confirming long-simmering reports that the Pentagon was likely to tap SpaceX for a new communications network in low-Earth orbit. SpaceX's selection for the Space Data Network (SDN) Backbone contract "accelerates the delivery of a resilient, high-speed communications network in space," Space Systems Command said in a statement.
The network will be based on technology originally developed for SpaceX's Starlink global Internet constellation. SpaceX already builds and launches specially designed satellites, called Starshield, for military applications. The SDN Backbone network in low-Earth orbit (LEO) will presumably use the Starshield platform.
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SpaceX and the Pentagon have been bickering about the price of using Starshield satellite service during the Iran war, according to a Reuters report published today. It appears that SpaceX asked the military for more money after it started using satellite terminals on "kamikaze" attack drones in Iran.
SpaceX CEO Elon Musk claimed the Reuters report is wrong. But Musk also said the military drones initially used the commercial Starlink service instead of the government-specific network, in violation of Starlink's terms of service. Musk blamed the violation on the contractor that built the drones for the government.
The Reuters report, based on Pentagon documents and interviews with sources familiar with the pricing talks, said that SpaceX recently asked the military to pay $25,000 for Starshield access on each kamikaze drone. The Pentagon, which previously paid $5,000 for each connection, objected to the price hike but ultimately agreed to pay it, according to Reuters.
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