SpaceX, the United States space launch service and aerospace manufacturer, was officially certified in “Category 2” last week by the National Aeronautics and Space Administration (NASA) as a preferred contractor. This means the space transport company can now compete head-to-head with United Launch Alliance (ULA) on most of NASA’s planned missions.

Although still considered an upstart, SpaceX was founded 13 years ago, in 2002, by Elon Musk, the founder of PayPal and current CEO of electric car company Tesla Motors. Musk has declared his goal as nothing less than enabling the human colonization of Mars, in large part by reducint the costs of space transportation.

The company’s “Category 2” certification allows it to able to bid on “medium-risk” missions, such as the launch of most satellites and “many” interplanetary probes on board its Falcon 9 vehicles. However, bids to fly the big and flashy Category 3 interplanetary missions will still be reserved only for ULA (with its Delta II and Atlas V rockets) and Orbital ATK, with its Pegasus XL rocket.

This could be a serious problem for ULA. Its big Atlas V rocket relies on RD-180 rocket engines from politically-tenuous Russia and also has cost issues with its Delta rockets. Theoretically, SpaceX’s Falcon 9 rockets are less expensive to operate, thus becoming a compettive bidder. In fact, possible new rules being discussed in Congress could make ULA itself unable to bid on national security-related launches.

Tory Bruno, CEO of ULA says he is “not the least bit afraid of competition.” SpaceX’s new certification will finally feel real when, for the first time, it wins out on a contract against ULA.