Pentagon’s commercial satellite internet services program soars to $13 billion (Image Credit: Space News)
WASHINGTON — The Defense Department is increasing its projected spending on low Earth orbit (LEO) satellite internet services more than tenfold, responding to surging demand from across the military, SpaceNews has learned.
The military’s Proliferated Low Earth Orbit (PLEO) Satellite-Based Services program, launched just last year with a $900 million ceiling, has been expanded to $13 billion by the Defense Information Systems Agency (DISA) and the Space Systems Command, a spokesperson confirmed.
The dramatic jump in funding underscores how vital high-speed satellite internet has become for military operations, as all branches clamor for the capabilities provided by services like SpaceX’s Starlink. The PLEO contract also is being expanded in anticipation of Amazon’s Project Kuiper entering the LEO internet market in the coming years.
The PLEO program is an Indefinite Delivery Indefinite Quantity (IDIQ) contract managed by DISA and the Space Systems Command’s Commercial Satellite Communications Office. The program so far selected 20 vendors to compete for specific task orders over a five-year base period with an option for an additional five years.
Before this increase, the PLEO contract had already spent about $660 million of its original $900 million ceiling. Most of the orders have been for Starshield, the militarized version of the Starlink service.
Ease of use key to military adoption
The Pentagon’s rising demand for Starshield underscores Starlink’s ability to adapt to military field operations, providing high-speed internet that is easy to set up and reliable under challenging conditions, said Kevin Seybert, SpaceX’s business development leader for Starlink and Starshield.
SpaceX’s approach of providing a dual commercial and military product is “core to what SpaceX is doing” in the launch market as well, Seybert said last week at the AFCEA Space Industry Days conference in Los Angeles.
He noted that the PLEO contract gives vendors flexibility to define services rather than dictate specific product specifications. This market-driven model has allowed vendors to “self-identify the most cost-effective ways of delivering capabilities,” shifting away from pricing metrics like per-megahertz or per-megabit rates and supporting more flexible pricing options.
The PLEO contract consolidates demand across all branches of the military, enabling the government to secure more favorable pricing than it would through traditional, one-off contracts.
Seybert said an early draft request for bids for the PLEO contract included mandatory in-person training for the installation of terminals. SpaceX pushed back, emphasizing the simplicity of Starlink’s installation, which requires minimal technical expertise and typically consists of “plugging in and pointing at the sky.” In response, DISA has made installation services optional for vendors whose equipment requires specialized setup, reducing barriers to deployment in the field.
The Starlink system’s adaptability is rooted in its commercial design, said Seybert, where it must contend with obstructions like trees or nearby buildings.
This resilience, designed for the consumer market, has become a valuable asset in military operations, where obstructions, interference, or even adversarial impacts can challenge connectivity. He said Starlink’s capacity to automatically reconnect with new satellites in case of interruptions has bolstered its military appeal.
DISA structured the PLEO contract to accommodate technological upgrades, a feature Seybert highlighted as “hugely important.” The flexibility to incorporate new capabilities as they become available, he said, enables the Pentagon to keep pace with commercial innovation.
Model for leveraging commercial tech
Jeff Rowlison, industry consultant at American Defense International, said he sees the PLEO contract as a breakthrough in leveraging commercial technology for military applications. “It’s a benchmark for accessing commercial capabilities at the speed of the commercial sector,” said Rowlison, noting that the program represents a significant shift in the Pentagon’s approach to integrating commercial solutions.
Rowlison also noted that while the Pentagon’s focus on LEO communications is promising, expanding similar models to areas like satellite imagery could yield broader benefits, potentially driving faster technological integration across military operations.