WASHINGTON -- The U.S. Space Force is poised to extend its contract for low Earth orbit (LEO) satellite services, spurred by increasing demand from military branches for high-speed satellite internet, primarily provided by SpaceX's Starshield and OneWeb.
The Proliferated Low Earth Orbit (PLEO) Satellite-Based Services program, initiated in 2023 with a $900 million cap over five years, is nearing its projected spending limit sooner than expected. This program consolidates demand from various military departments, offering access to low-latency satellite communication services from multiple commercial vendors.
Col. Richard Kniseley, head of the Space Systems Command's Commercial Space Office, stated, "At some point, we are going to have to raise the ceiling on the PLEO contract." He noted that the current spending stands at approximately $660 million, just over a year since the contract's inception, indicating a strong appetite for satellite services.
The PLEO contract streamlines the procurement process for military satellite services, allowing the military to aggregate orders to achieve cost savings. Kniseley emphasized, "The great thing about the PLEO contract is that we're able to group together the requirements of many different entities to get the best price possible for the government."
SpaceX's Starshield, a military-optimized version of its Starlink service, alongside OneWeb, has secured the majority of task orders under this contract. Iridium Communications has also received one task order to date.
Furthermore, Kniseley highlighted that his office is assisting the U.S. Army in procuring satellite communication services outside of the PLEO program. The Army has recently completed a one-year pilot program to evaluate commercial options and is now conducting market research to determine future satellite communication procurement strategies beyond the PLEO framework.