The U.S. Space Force has awarded Blue Origin a $78.2 million contract aimed at significantly expanding satellite processing capabilities at Cape Canaveral Space Force Station. This strategic three-year agreement, officially announced on October 7th, was secured through a “Commercial Solutions Opening” (CSO) competition. The CSO is a procurement method employed by the government to foster private-sector innovation and share project costs with commercial partners.
According to officials, the development of robust ground infrastructure at the nation’s busiest spaceport is crucial to keep pace with the rapidly increasing demand for launch services. Blue Origin's contract represents the second CSO award this year focused on enhancing satellite processing. In April, Lockheed Martin’s Astrotech Space Operations subsidiary was awarded a $77.5 million contract for similar improvements at Vandenberg Space Force Base in California.
“This second CSO award reflects our continued commitment to meet both national security and commercial launch requirements,” stated Col. Dan Highlander, director of operations integration at Space Systems Command’s (SSC) Assured Access to Space directorate. “The public-private partnership behind the new capacity enables us to cost-share with commercial industry to our mutual benefit.”
The rate of launches from the Florida spaceport has surged in recent years and is projected to continue growing, according to industry executives. While the range and launch pads can accommodate more flights, the facilities where satellites are prepared for flight have struggled to keep up. These specialized cleanroom environments are where payloads undergo crucial final testing, fueling, and integration processes before being encapsulated atop rockets. Officials have identified these facilities as a major bottleneck.
The challenge is further compounded by the increasing popularity of SpaceX rideshare missions, where numerous small satellites from various organizations share a single rocket. Each payload requires specific security measures, handling procedures, and testing timelines, which places significant strain on limited cleanroom capacity. Blue Origin, founded by Jeff Bezos, is continuously expanding its presence on Florida’s Space Coast. The company operates Launch Complex 36 at Cape Canaveral, where preparations are underway for the second launch of its heavy-lift New Glenn rocket. The facility includes a substantial integration building and processing areas designed for both rockets and payloads.
“We are proud to work with the U.S. Space Force Space Systems Command to construct a new payload processing facility supporting multiple launch vehicle providers on Florida’s Space Coast,” Blue Origin said in a statement. “This partnership will enhance Blue Origin’s capabilities to operate more efficiently and expand our capacity to support a higher launch cadence to meet customer needs.”