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American aerospace manufacturer and launch service provider Rocket Lab is making its debut as a defence industry prime with a $0.5 billion contract to build satellites for the United States Space Force.
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As the prime contractor, the company, which operates a private orbital launch range in New Zealand, will design, build, test, and operate the Tranche 2 Transport Layer-Beta satellites for Space Development Agency’s (SDA) Proliferated Warfighter Space Architecture.
The SDA, established in 2019, is a United States Space Force direct-reporting unit tasked with creating and sustaining lethal, resilient, threat-driven, and affordable military space capabilities that provide persistent, resilient, global, low-latency surveillance to deter or defeat adversaries.
Rocket Lab will act as a prime contractor for the US$515 million firm-fixed price agreement, leading the design, development, production, test, and operations of the satellites, including procurement and integration of the payload subsystems.
The contract establishes the company’s position as a leading satellite prime contractor, providing supply chain diversity to the Department of Defense (DOD) through vertical integration.
The contract comprises $489 million base plus $26 million of incentives and options and will be carried out by Rocket Lab National Security, the company’s wholly owned subsidiary created to serve the unique needs of the US defence and intelligence community and its allies.
The SDA is procuring satellites in two-year “tranches” to build out a proliferated constellation in low-Earth orbit (LEO) to deliver needed space-based capabilities to the joint warfighter. The T2TL – Beta satellites, part of the Tranche 2 program, will be integrated into SDA’s transport layer to provide assured, resilient, low-latency military data and connectivity worldwide to meet DOD needs.
“This contract marks the beginning of Rocket Lab’s new era as a leading satellite prime,” said Peter Beck, Rocket Lab founder and chief executive officer.
“We’ve methodically executed on our strategy of developing and acquiring experienced teams, advanced technology, manufacturing facilities, and a robust spacecraft supply chain to make this possible.
“It’s exciting to now be delivering this capability for government and commercial customers alike.
“SDA’s acquisition approach favours speed, schedule certainty, and affordability to deliver next-generation space capabilities to the nation.
“We’ve proven Rocket Lab is capable of delivering this across our launch and spacecraft programs and we look forward to delivering it for SDA.”
All 18 satellites will integrate subsystems and components built in-house by Rocket Lab, including solar panels, structures, star trackers, reaction wheels, radio, flight software, avionics, and launch dispenser.
The satellites will be built at Rocket Lab’s advanced spacecraft development and manufacturing complex within the company’s Long Beach headquarters. The facility includes a 12,000-square foot cleanroom and 40,000 square feet of streamlined production and test facilities designed to support Constellation Class manufacturing and satellite assembly, integration and test for commercial, civil and national security customers. The satellites are scheduled for launch in 2027.
