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Rocket Lab gets contract to build 18-satellite constellation for U.S. military

Rocket Lab was yesterday awarded a half billion dollar contract to build the next set of eighteen satellites of the U.S. military’s Tranche communications satellite constellation.

Rocket Lab will act as prime contractor for the $515 million USD 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 Rocket Lab’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 (RLNS), the Company’s wholly owned subsidiary created to serve the unique needs of the U.S. defense and intelligence community and its allies.

The plan is for these satellites to launch in 2027. It does not appear that the contract includes the launches itself. Rocket Lab can do some, but it is likely the military will award some to SpaceX and others.

This deal continues the military’s shift from designing and building its own satellites that usually cost too much and are years behind schedule to buying the product from the private sector. It also continues the shift from large unwieldly and very exposed single satellites to constellations of many small satellites that are difficult to destroy..

Genesis cover

On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.

 
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.


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"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News

One comment

  • sippin_bourbon

    That is a healthy sized contract, especially for a smaller company.

    They had $582million in backlog at the end of Q3.
    They have practically doubled that.

    I am guessing nothing said about launches, because electron cadence is not fast enough, and Neutron is far from operational.
    These are two things that are likely to change before 2027.

    Additionally, there is the possibility of other players being operational by then also.

    Last, there is nothing in the announcement describing the size of these sats. I would not expect anything on that either.

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