The Department of Defense has raised the ceiling value of the Proliferated Low Earth Orbit, or PLEO, Satellite-Based Services program, from $900 million to approximately $13 billion in response to the increasing demand across the military, SpaceNews reported Tuesday.
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PLEO Contract
The Defense Information Systems Agency and Space Systems Command’s Commercial Satellite Communications Office, or CSCO, manage the PLEO program, which launched in 2023.
PLEO is an indefinite-delivery/indefinite-quantity contract with a five-year base term and five option years. Under this contract, 20 contractors are eligible to compete for task orders.
In July 2023, DISA initially selected 16 vendors for the IDIQ contract. Three months later, it was announced that four additional companies were added to the contract vehicle.
In January, CSCO Director Clare Hopper hinted at the possibility of raising the contract ceiling due to rising military demand.
Prior to the increase, about $660 million of the contract’s original ceiling had been spent.
According to the report, most of the orders under the contract have been for the militarized version of SpaceX‘s Starlink service called Starshield.
Offering Flexibility to Vendors and Government
Kevin Seybert, SpaceX’s business development leader for Starlink and Starshield, said the PLEO contract allows vendors to define services, enabling them to advance more flexible pricing options.
Seybert added that the contract could help DOD keep pace with commercial innovation because it allows them to integrate new tech capabilities.
According to the report, the IDIQ contract provides the government with an opportunity to get more favorable pricing by consolidating demand across all military branches.