Commercial space companies are revolutionizing the global economy with groundbreaking technologies, from autonomous satellite docking to cutting-edge data services. Yet, despite their innovation prowess, companies face significant challenges navigating the labyrinthine corridors of military space acquisition. For many, understanding the United States government’s sprawling and fragmented procurement system remains a daunting task.
Consider Lee Rosen, co-founder and CEO of space infrastructure startup ThinkOrbital. He encapsulated this frustration at last month’s Spacepower conference in Orlando, Florida. A retired U.S. Air Force officer with more than two decades of experience in military acquisitions and space operations, Rosen described his difficulty navigating the military’s procurement system as “absolutely crazy.” If someone with his pedigree finds the process confounding, what hope is there for startups with zero institutional knowledge?
The U.S. Space Force, which oversees military space acquisitions, is emblematic of the complexity. Within the Space Force, multiple entities such as the Space Systems Command, the Space Development Agency, and the Space Rapid Capabilities Office manage various programs. Beyond that, agencies such as the Missile Defense Agency, the Defense Innovation Unit, and the intelligence community’s National Reconnaissance Office and National Geospatial Intelligence Agency further expand the landscape. For startups seeking government customers, identifying the right door to knock on often feels like a guessing game.
The resource divide
The situation is exacerbated by the stark disparity in resources between large defense contractors and smaller commercial firms. Major players can afford teams dedicated to deciphering government solicitations and responding to proposals, while startups often struggle with these labor-intensive requirements. “We’re a small but mighty organization,” Rosen said. But even responding to Small Business Innovation Research (SBIR) proposals can drain resources for contracts that provide only modest funding.
Private sector firms also face conflicting signals from potential customers. Jason Mallare, vice president of global solutions at Umbra Space, highlighted this challenge at the Spacepower Conference. Companies in the remote-sensing sector, for instance, are unsure whether the government prefers to buy satellite data as a service or to acquire and operate the satellites directly. “It’s still a little bit opaque to us,” Mallare admitted, stressing the need for clearer feedback from military customers to guide investment decisions.
To address these challenges, the Space Force has expanded its “Front Door” initiative, a portal designed to connect commercial firms with government buyers. The program now includes over 20 agencies, including NASA and the National Reconnaissance Office, offering a streamlined way for companies to engage with potential customers.
Col. Richard Kniseley, head of the Commercial Space Office at Space Systems Command, noted that the initiative has even drawn international interest, with foreign governments seeking to replicate the model.
Despite these efforts, misunderstandings persist. According to Cordell DeLaPena, program executive officer for military satellites at the Space Systems Command, many proposals from commercial firms are deemed “unawardable” because they fail to meet basic technical requirements. This highlights the need for companies to better understand the rules of engagement when dealing with government customers.
Symbiotic relationship
For the U.S. military, commercial innovation is crucial to maintaining dominance in the increasingly contested domain of space. For private companies, government contracts provide the funding and validation needed to scale their operations and advance their technologies. As Rosen suggested, the Space Force could benefit from focusing its efforts on a few transformative technologies rather than spreading resources too thinly.
Both sides recognize the need for collaboration. The Space Force’s outreach efforts, combined with the private sector’s eagerness to innovate, suggest that a more efficient partnership is possible. But until the maze of military space acquisition is simplified, commercial space companies will continue to struggle to turn their technological breakthroughs into operational realities for the U.S. government.
The challenge, as always, lies in aligning two cultures that operate at vastly different speeds: the nimble, risk-taking ethos of Silicon Valley and the cautious, process-driven nature of the Pentagon. As international competition in space intensifies, the race for space superiority isn’t just about developing new tech, it’s about building an acquisition system that can keep pace with technological change.
This article first appeared in the “On National Security” commentary feature in the January 2025 issue of SpaceNews Magazine.
