SpaceX: Elon Musk-owned space agency awarded $70m contract for Starlink internet services

SpaceX has been awarded a $70m contract by the U.S Space Force for Starlink internet services which includes "unique terms and conditions” not included in previous commercial contracts.

The Elon Musk owned company was awarded a one-year task order on 1 September for the procurement of Starlink internet services but also lays out other unspecified requirements. 

However, the Space Systems Command did not specify what unique terms and conditions are included in the Starshield contract. 

A spokesperson for the Space Systems Command — the organisation which oversees the Commercial Satellite Communications Office said: “SpaceX is providing a best effort and global subscription for various land, maritime, stationary and mobility platforms and users,” the command said in a statement to SpaceNews.

Starlink, under this agreement, is known as Starshield which is its military product line.

“The task order for Starshield services is provided by the Starlink satellite constellation but is differentiated from the commercial Starlink service based on unique Department of Defense terms and conditions that are not found in commercial service contracts,” said the spokesperson.

The $70m contract is a task order under an indefinite delivery/indefinite quantity (IDIQ) procurement vehicle for proliferated low Earth orbit (PLEO) satellite services. 

SpaceX is one of 16 selected vendors that will compete for up to $900 million worth of task orders over the next 10 years but the SpaceX contract is the first and the only task order awarded to date under the new PLEO IDIQ. 

A U.S. military official speaking on background said it’s fair to assume that the contract has language that would prevent Musk from turning the service off on a whim regardless of how U.S. military customers employ the service. DoD also likely requires enhanced cybersecurity and anti-jamming protection. 

The initial phase of the Starshield contract obligates $15m to SpaceX by 30 September, to provide services that support 54 military “mission partners” across Department of Defense branches, the spokesperson said.

The award of the task order was first reported last week by Bloomberg News.