Rocket Lab Awarded $515M Contract to Propel Defense Innovation with Satellite Constellation

Rocket Lab Office

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Insider Brief:

  • Rocket Lab, a prominent player in space launch services and advanced satellite technology, has secured a groundbreaking $515 million USD firm-fixed price contract with the Space Development Agency (SDA).
  • As the prime contractor, Rocket Lab will spearhead the design, development, production, testing, and operations of 18 Tranche 2 Transport Layer-Beta Data Transport Satellites (T2TL – Beta) for the SDA’s Proliferated Warfighter Space Architecture (PWSA).
  • The contracted 18 satellites, featuring components manufactured at Rocket Lab’s Long Beach headquarters, are slated for launch in 2027.
  • Image credit: Rocket Lab

Rocket Lab, a prominent player in space launch services and advanced satellite technology, has secured a groundbreaking $515 million USD firm-fixed price contract with the Space Development Agency (SDA). As the prime contractor, Rocket Lab will spearhead the design, development, production, testing, and operations of 18 Tranche 2 Transport Layer-Beta Data Transport Satellites (T2TL – Beta) for the SDA’s Proliferated Warfighter Space Architecture (PWSA). The contract solidifies Rocket Lab’s position as a leading satellite prime contractor and contributes to the Department of Defense’s (DoD) supply chain diversity through vertical integration.

Rocket Lab National Security (RLNS), the company’s wholly owned subsidiary catering to the U.S. defense and intelligence community, will execute the contract. The $515 million agreement includes a $489 million base with an additional $26 million allocated for incentives and options.

The Tranche 2 program, organized in two-year “tranches,” aims to build a proliferated Low Earth Orbit (LEO) constellation to deliver crucial space-based capabilities to the joint warfighter. The T2TL – Beta satellites, integral to this initiative, will enhance the SDA’s Transport Layer, providing secure, resilient, low-latency military data and connectivity globally.

Rocket Lab’s founder and CEO, Peter Beck, highlighted this contract as a pivotal moment, marking the company’s entry into a new era as a leading satellite prime contractor. The high degree of vertical integration, with in-house production of key subsystems and components, affords Rocket Lab unprecedented control over the supply chain, ensuring efficiency, cost-effectiveness, and quality. The 18 satellites, featuring components manufactured at Rocket Lab’s Long Beach headquarters, are slated for launch in 2027.

With a backlog of over 40 satellites in development and production, Rocket Lab’s expertise in satellite technology and components continues to shape the landscape of space technology globally, with applications extending to government, commercial, civil, and national security sectors.

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