The US Space Force has expanded its pool of eligible launch bidders with two companies, but one of them does not actually launch rockets. Impulse Space, a startup specializing in in-space propulsion and spacecraft, joins Relativity Space in the military's competitive bidding program for launch contracts. The move signals a widening of the military's definition of launch capability and a growing interest in integrated space services.

What You Need to Know

Impulse Space builds spacecraft for in-space operations such as orbital transfers and satellite servicing, not launch vehicles. Its inclusion in the military's launch competition suggests the Space Force values in-space transportation services as part of its broader launch architecture. Relativity Space, meanwhile, is a traditional rocket company developing the partially reusable Terran R heavy-lift vehicle. Both companies join an existing pool of bidders that includes established defense contractors.

Surprise Addition: Impulse Space's Unusual Role

Impulse Space's selection surprised industry observers because the company has no rockets of its own. Founded by Tom Mueller, a veteran rocket engineer, Impulse Space designs propulsion systems and vehicles that operate entirely in orbit. Its vehicles can move satellites between orbits, support orbital logistics, and potentially dock with military assets. The Space Force appears to view these capabilities as complementary to traditional launch services.

Military launch contracts typically go to companies that provide the rocket that lifts payloads from Earth to orbit. By including Impulse Space, the Space Force is signaling that the competitive market now extends to the full journey from ground to final orbit. This could pave the way for a two-stage procurement: one contract for the launch vehicle and another for in-space delivery.

  • Impulse Space: Focuses on in-space propulsion for satellite transport, orbital servicing and debris management.
  • Relativity Space: Developing the heavy-lift Terran R rocket with partial reusability, aiming to compete with SpaceX and ULA.
  • Eric Schmidt: Former Google CEO now leads Relativity Space, bringing deep technology and capital experience.

Relativity Space Gains Credibility

Relativity Space's inclusion in the pool is less surprising. The company has made steady progress on its large Terran R rocket, which is designed to carry heavy payloads to orbit. Under the leadership of Eric Schmidt, the former Google chief executive, Relativity Space has secured funding and manufacturing partnerships. The Terran R aims to be partly reusable, a key requirement for cost-competitive military launches.

For Relativity Space, being added to the military's bidding pool is a milestone that signals maturity. It opens the door to contracts worth hundreds of millions of dollars and provides a reliable revenue stream beyond commercial customers. The company still must demonstrate successful orbital launches, but the military's interest adds pressure to deliver on time.

Why This Matters

The inclusion of Impulse Space in what has historically been a rocket-only competition reshapes the landscape for defense space procurement. It acknowledges that the path from Earth to a specific orbit may not end with the launch vehicle. In-space transportation providers now have a direct route to military contracts, which could accelerate development of orbital logistics, refueling and satellite servicing. For taxpayers, this could mean more flexible and cost-effective access to orbit. For the two startups, the contracts provide validation and financial runway. For established launch providers, it creates a new competitive dynamic where they may need to partner with in-space specialists to win end-to-end missions.

Broader Market Implications

The Space Force's move reflects a broader trend: the military increasingly treats space as a contested domain requiring resilient, multi-layered access. By diversifying its supplier base beyond traditional launch primes, the service hopes to reduce single points of failure and encourage innovation. Both Impulse Space and Relativity Space represent a new generation of space startups building hardware with commercial backing. Their inclusion suggests that the military is willing to bet on smaller, more agile companies alongside established giants like SpaceX and United Launch Alliance.

Industry analysts expect this expansion to continue, with more specialized space mobility companies entering the bidding process. The long-term effect could be a more segmented but ultimately more resilient launch market, where companies specialize in specific phases of the journey to orbit.