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Rocket Lab wins $515m military satellite contract through vertical integration

by Celia

The Space Development Agency (SDA) has been unveiled as the undisclosed customer behind Rocket Lab’s substantial $515 million contract for 18 satellites, a deal announced in late December. In a regulatory filing, Rocket Lab had initially stated it would design, manufacture, deliver, and operate the satellites for an unnamed U.S. government entity. The SDA has now confirmed that the order is part of its expansive network of military satellites known as Proliferated Warfighter Space Architecture (PWSA).

The contract, valued at a base amount of $489 million with additional opportunities worth $26 million, pertains to a section of the PWSA referred to as the Tranche 2 Transport Layer (T2TL) and a variant named Beta. Rocket Lab will be responsible for delivering and operating a prototype constellation comprising nine satellites in each of two orbital planes. The launch of these satellites is scheduled for no later than July 2027.

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While Rocket Lab will not provide the communications payload, the company will execute the bulk of the work over the next three years, operating the satellites through 2030 with an option for extension until 2033. The spacecraft will be manufactured at Rocket Lab’s Long Beach, California facility. This award stands as the largest in Rocket Lab’s history and brings the total number of spacecraft in its backlog to 40.

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The SDA has already allocated substantial contracts for PWSA, with this specific funding covering the Tranche 2 Transport Layer and the Beta variant. Notably, Rocket Lab’s vertically integrated supply chain allows the company to build the satellites and leverage its own subcomponents, including solar panels, star trackers, reaction wheels, and avionics.

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Rocket Lab’s CEO, Peter Beck, emphasized the strategic investments in their space systems business, highlighting the company’s commitment to delivering industry-leading quality performance and adhering to schedules. The SDA director, Derek Tournear, welcomed Rocket Lab as a key contributor to the Tranche 2 Transport Layer-Beta program, underlining the agency’s dedication to fostering an innovative marketplace to support its proliferated architecture initiatives. The SDA has already awarded contracts totaling $1.5 billion for 72 T2TL Beta satellites to Northrop Grumman and Lockheed Martin.

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