The Pentagon has awarded Elon Musk’s SpaceX its first confirmed contract for the Starshield network it’s developing. The Starshield network is a military-specific version of SpaceX’s Starlink satellite internet system, according to the defense agency. This contract marks a significant milestone for the company in the defense sector.

A spokesperson from the Space Force confirmed that SpaceX was awarded a one-year contract for Starshield with a maximum value of $70 million. This contract was part of a program by the Space Force’s commercial satellite communications office, and SpaceX was one of 18 companies to receive an award.

The contract includes end-to-end services, user terminals, ancillary equipment, network management, and other related services. Space Force spokesperson Ann Steefnek told AsumeTech about the details of the SpaceX contract.

SpaceX has not yet issued a comment on the Starshield contract, as requested by AsumeTech.

Starshield is a new business line introduced by SpaceX last year. While the company has not released many details about its scope and capabilities, it is marketed as an “end-to-end,” dedicated offering that focuses on national security. This offering is distinct from SpaceX’s Starlink consumer and enterprise network.

This contract for Starshield is not the first collaboration between SpaceX and the Pentagon. In June, SpaceX won another contract to provide an undefined number of Starlink ground terminals for use in Ukraine. These contracts solidify SpaceX’s position as a valuable partner to the Pentagon and highlight the growing interest in its satellite internet services.

The initial phase of the Starshield contract requires SpaceX to provide services supporting 54 military “mission partners” across Department of Defense branches by September 30. This contract further establishes SpaceX’s presence in the defense industry and its commitment to delivering advanced satellite technology.

The news of the Starshield contract was first reported by Bloomberg.