Blue Origin wins $78.2 million contract to expand satellite processing infrastructure at Cape Canaveral

WASHINGTON — The U.S. Space Force awarded Blue Origin a $78.2 million contract to expand satellite processing capacity at Cape Canaveral Space Force Station. 

The three-year agreement, announced Oct. 7, was secured through a “Commercial Solutions Opening” (CSO) competition — a procurement method the government uses to attract private-sector innovation and share project costs with commercial partners.

Building ground infrastructure at the nation’s busiest spaceport is needed to keep up with surging launch demand, officials said.

Blue Origin’s contract marks the second CSO award of the year targeting satellite processing improvements. In April, Lockheed Martin’s Astrotech Space Operations subsidiary received a $77.5 million contract for similar work at Vandenberg Space Force Base in California. 

“This second CSO award reflects our continued commitment to meet both national security and commercial launch requirements,” said 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.”

Bottlenecks at the busiest spaceport

The launch cadence at the Florida spaceport has soared in recent years, and is expected to grow even further, according to launch industry executives.

But while the range and launch pads can support more flights, the facilities where satellites are processed and readied for flight have struggled to keep up. These cleanroom environments are where payloads undergo final testing, fueling and integration before being encapsulated atop rockets.

Officials say these facilities have become a major bottleneck. The challenge is amplified by the rise of SpaceX rideshare missions — where dozens of small satellites from different organizations share a single rocket. Each payload requires its own security measures, handling procedures, and testing timelines, placing heavy demand on limited cleanroom capacity.

Blue Origin, the space venture founded by Jeff Bezos, is steadily expanding its presence on Florida’s Space Coast. The company operates Launch Complex 36 at Cape Canaveral, where it is preparing for the second launch of its heavy-lift New Glenn rocket. The facility includes a massive integration building and processing areas 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.”