By Julian E. Barnes And Doug Cameron 

The Pentagon will announce plans next week to open more space rocket launches to competition, paving the way for Elon Musk's SpaceX to try to win its first military business, according to U.S. officials familiar with the plan.

The Air Force plans to add additional launches of new global positioning satellites in coming years to create competition to the joint venture between Boeing Co. and Lockheed Martin Corp., known as the United Launch Alliance, which dominates existing military satellite launch missions.

Defense officials on Thursday said there are new initiatives to increase competition in space launches and new money for programs that protect satellites from cyberattacks within the military space budget proposal to be announced Monday by the Obama administration.

Officials wouldn't detail how much additional money is being put into either the effort to increase GPS satellite launches or cyberdefenses. Overall, the Pentagon proposes to spend $7.1 billion on military space operations, down slightly from the current fiscal year space budget of $7.4 billion, according to budget documents reviewed by The Wall Street Journal. That spending doesn't include money for NASA's budget.

The spending plan approved by Congress late last year included launches for two additional GPS launches, one this year and one in 2016 or 2017. The new plan will further increase the launches, part of an effort by the Pentagon to try to create new military satellite launches that can be bid on by SpaceX and can help build up competition.

The Pentagon previously had halved the number of potential launch competitions to seven after some satellites lasted longer than expected and didn't need to be replaced.

U.S. officials said the new budget will attempt to patch relations with SpaceX, as well as provide funding to help develop an American made rocket engine to take the place of the Russian made engine used on some ULA missions.

"The Air Force is taking steps to promote the development of two commercially-viable, domestically-sourced space launch service providers with the objective of eliminating reliance on a foreign-made liquid rocket engine," the document reviewed by the Journal said.

SpaceX and ULA didn't immediately offer a comment.

SpaceX sparred last year with the Air Force over what it saw as an unfair deal that gave the bulk of its sensitive satellite launch business to the venture between Boeing and Lockheed Martin. The venture has held a monopoly on sensitive launches through a multiyear deal worth around $11 billion.

SpaceX originally had proposed to bid on new GPS rocket launches in 2012, according to court documents but lacked the required certification.

The Pentagon had hoped to have a competition last year to launch a payload for the National Reconnaissance Office, which operates the nation's spy satellites, but delays in certifying SpaceX for military work sunk that plan. ULA this week secured the NRO contract.

But SpaceX last week reached a settlement with the Air Force, dropping a lawsuit that sought to break up the ULA contract and charting a path to secure certification. The Pentagon had hoped to clear SpaceX to compete for rocket deals by the end of 2014, but this has slipped to later this year.

Write to Julian E. Barnes at julian.barnes@wsj.com and Doug Cameron at doug.cameron@wsj.com

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