On Friday, SpaceX secured a significant contract from U.S. Space Force, worth $733 million, entailing eight launches. This agreement is a part of a broader initiative to encourage competition among launch service providers.

The contract involves seven launches for the Space Development Agency and one for the National Reconnaissance Office. The launches, which are scheduled to use Falcon 9s, will not take place before 2026.

This substantial contract falls under the U.S. Space Force Space Systems Command (SSC)’s program, humorously named “National Security Space Launch Phase 3 Lane 1.” This program, divided into two lanes, caters to low-risk missions and near-Earth orbits in Lane 1, while Lane 2 is reserved for heavy-lift missions and more challenging orbits.

Earlier this summer, the Space Force chose SpaceX, United Launch Alliance, and (surprisingly, considering they haven’t reached orbit yet) Blue Origin to compete for launches under Lane 1. Despite the limited number of award recipients, the Space Force plans to counterbalance this by permitting companies to bid for Lane 1 yearly. The next chance to join Lane 1, with an estimated worth of $5.6 billion over five years, will be later in 2024.

Lt. Col. Douglas Downs, SSC’s material leader for space launch procurement, shared in a press release that the force anticipates an “increase in competition and diversity” due to the opportunity to incorporate new providers.

The award period for the Phase 3 Lane 1 is from the fiscal year 2025 to 2029, with a potential extension of another five years. During this period, the Space Force plans to award at least 30 missions. While SpaceX’s victory might seem obvious this time, the emergence of new launch companies and vehicles in the coming years could intensify the competition.