Rocket Lab Wins $515 Million Contract to Build 18 Satellites for U.S. Government Agency

Space News ,U.S :- Rocket Lab, the prominent space launch provider and satellite manufacturer, has successfully secured a deal exceeding half a billion dollars to construct 18 satellites for a distinguished U.S. government agency. This groundbreaking agreement, revealed in a regulatory filing with the SEC on December 21, involves Rocket Lab National Security undertaking the comprehensive process of designing, manufacturing, delivering, and operating the specified space vehicles. The total value of the contract is an impressive $515 million, although specific details beyond this were not disclosed, as mentioned by a company spokesperson.

Indications from reliable sources strongly suggest that the recipient of this ambitious contract is likely the Space Development Agency (SDA). The SDA, operating under the U.S. Space Force, is actively engaged in the creation of a mesh network comprising military satellites in low Earth orbit, known as the Proliferated Warfighter Space Architecture.

Director Derek Tournear of the SDA, speaking at a recent conference, affirmed that negotiations were underway for a contract with an undisclosed supplier for the production of 18 satellites. These satellites are intended to augment the U.S. military low Earth orbit constellation, specifically contributing to the Transport Layer Tranche 2 Beta. This particular layer involves the deployment of communications satellites aimed at facilitating beyond line-of-sight connectivity for ground-based military forces.

The Transport Layer Tranche 2 Beta, anticipated to consist of 90 satellites, is scheduled for launch in 2026 and 2027. These satellites will carry radios utilizing UHF (Ultra High Frequency) and S-band frequencies, crucial for military and intelligence operations involving voice and low-speed data transmissions.

The recently unveiled contract with Rocket Lab encompasses a base amount of $489 million, with additional incentives and options valued at $26 million. The agreement outlines immediate commencement of work, leading to the delivery of the space vehicles for launch in 2027. Furthermore, the contract covers satellite operation until 2030, with an option for extension until 2033.

This deal marks a significant milestone for Rocket Lab growing satellite business. The company, headquartered in Long Beach, California, is renowned for its small-satellite launch services utilizing Electron rockets from spaceports in New Zealand and Virginia. Additionally, Rocket Lab is in the process of developing a larger rocket named Neutron, slated for debut in 2025.

In recent years, Rocket Lab has diversified its portfolio with the establishment of a Space Systems business, manufacturing components and spacecraft for both government and commercial clients. The contract with the SDA represents Rocket Lab most substantial venture into satellite operations to date.

Notably, Rocket Lab has been steadily expanding its influence in the space industry, winning contracts in 2022 worth $14 million for providing separation systems for Space Development Agency satellites. These separation systems serve as crucial interfaces attaching satellites to rockets and releasing them into space upon reaching their designated orbits.

Rocket Lab commitment to innovation and meeting the demands of the rapidly evolving space industry positions it as a key player in the satellite manufacturing and launch services sector, with this latest deal serving as a testament to its growing influence in the market.