# Air & Space Forces Advance Orbital Cargo Delivery

The U.S. Air Force and U.S. Space Force are accelerating research and development efforts to enable rapid global cargo delivery from space using smaller, low-cost reentry capsules. This strategic shift moves away from reliance on large reusable rockets toward more versatile capsule-based delivery systems capable of reaching austere and remote locations worldwide. Key programs include the Air Force Research Laboratory's Payload Delivery System (PDS), the Space Force's Point-to-Point Delivery (P2D), and the Rocket Experimentation for Global Agile Logistics (REGAL) contract vehicle. Multiple commercial firms such as SpaceX, Blue Origin, Rocket Lab, Sierra Space, and Varda Space Industries are engaged under these initiatives, with Blue Origin receiving over $13 million in awards for technology demonstrations as recently as July 2026.

- The Air Force and Space Force have requested combined funding exceeding $48 million for FY 2027 to support PDS and related research efforts focused on smaller reentry capsules.
- The REGAL contract vehicle, active since 2021 and updated in 2024, facilitates technology development and demonstrations for point-to-point delivery capabilities.
- Procurement professionals should note the evolving vendor landscape involving multiple commercial aerospace companies, indicating opportunities for participation in future contract awards and technology demonstrations.
- Organizations supporting rapid, low-cost space cargo delivery technologies may find increased demand as the military prioritizes agile logistics solutions to austere environments globally.

**Jurisdictions:** federal
**Industries:** Defense & Military, Information Technology
**Topics:** Physical Infrastructure, Contracting Vehicles
**Published:** September 24, 2026

### Government Entities
- Air Force Research Laboratory (AFRL)
- U.S. Air Force (Air Force)
- U.S. Space Force (Space Force)

### Vendors
- SpaceX (potential commercial vendor)
- Blue Origin (awardee under REGAL contract)
- Rocket Lab (potential commercial vendor)
- Sierra Space (awardee under REGAL contract)
- Varda Space Industries (potential commercial vendor)

### Sources
- [Air, Space Forces pick up research pace for orbital cargo delivery - Breaking Defense](https://breakingdefense.com/2026/09/air-space-forces-pick-up-research-pace-for-orbital-cargo-delivery) - Breaking Defense
- [Air & Space Forces Shift R&D Toward Smaller Reentry Capsules](https://www.executivegov.com/articles/air-space-forces-small-reentry-capsules) - ExecutiveGov
- [Read the article for tighter and more precise wording. 
AFRL confirmed engagement with $SPCX, Blue Origin, $RKLB, Sierra Space, Varda, Inversion and Outpost. However, “engaged” does not mean every company has received a PDS contract.

https://t.co/HJyMA3GTEj

On May 8th, $RKLB se](https://x.com/SpaceSector001/status/2102876164821778638) - twitter-defense