Rocket Lab gets two big military contracts, from the Space Force and the UK

Due to its success in quickly redesigning the first stage of its Electron rocket into a hypersonic test vehicle dubbed HASTE, Rocket Lab has now won two very large hypersonic test program contracts from both the American Space Force as well as the United Kingdom.

Rocket Lab has been selected by the U.S. Air Force to participate within its Enterprise-Wide Agile Acquisition Contract (EWAAC), a $46 billion indefinite delivery-indefinite quantity (IDIQ) contract designed for the rapid acquisition of innovative technologies, engineering services, and technical solutions that develops the Air Force’s new capabilities. The program has a contracting period through to 2031 and is designed to be broad in scope, flexible in funding, and agile for maximum use to enable the Air Force to quickly procure services and technologies across various domains.

Further, Rocket Lab has also been selected by the United Kingdom’s Ministry of Defence (UK MOD) for its Hypersonic Technologies & Capability Development Framework (HTCDF), a ~$1.3 billion (£1 billion) framework to rapidly develop advanced hypersonic capabilities for the United Kingdom. As a newly-selected supplier to the HTCDF, Rocket Lab is now eligible to bid to provide services, technologies, and testing capabilities that support the UK’s development of sovereign hypersonic technology.

In both cases Rocket Lab will bid for test contracts using HASTE.

These deals indicate that Rocket Lab has essentially grabbed the business that Stratolaunch had been vying for with its giant Roc airplane and Talon test drop vehicles. Stratolaunch might get some contracts, but it appears the bulk of the work will instead go to Rocket Lab. It also appears that Stratolaunch has also been beaten to this business by the startup Varda, which has also won an Air Force contract for hypersonic testing using its orbital capsules during their return to Earth.

Varda’s third capsule begins orbital operations

Varda's space capsule, on the ground in Utah
Varda’s first capsule on the ground in Utah.

The in-space commercial company Varda on March 15, 2025 confirmed that its third capsule has successfully begun orbital operations after its launch on a Falcon 9 rocket, carrying an Air Force payload that will test measuring the capsule’s re-entry speeds in connection with military hypersonic research.

W-3’s payload is an advanced navigation system called an Inertial Measurement Unit (IMU) developed by the US Air Force and Innovative Scientific Solutions Incorporated (ISSI). This payload will be tested at reentry speeds it was designed to withstand but has never encountered before.

This payload is part of a $48 million Air Force contract awarded to Varda in December. The company also notes in the press release that it is aiming for a monthly launch rate for its capsules, which provide customers an opportunity to do all kinds of in-space testing and manufacturing. Since this launch took place only fifteen days after the landing of its second capsule, it appears Varda is moving swiftly in that direction, thus providing more business for American rocket startups.

The capsule includes a service module built by Rocket Lab, and will stay in orbit several weeks before it returns to Earth, landing at the Koonibba Test Range in South Australia, operated by the Australian commercial spaceport startup Southern Launch.

Varda flying its second returnable capsule

The startup Varda, which specializes in flying a returnable orbiting capsule for customers, is now flying its second mission, this time for the Air Force Research Lab (AFRL) testing hypersonic technologies.

The payload is known as OSPREE (Optical Sensing of Plasmas in the Reentry Environment), a spectrometer designed to collect atmospheric data during the capsule’s high-speed descent. The information will help refine thermal protection systems, sensor designs, and aerodynamics for hypersonic vehicles.

Unlike Varda’s first mission, the goal is not to stay in orbit to manufacture pharmaceuticals in weightlessness. Instead, the goal is to use Varda’s capsule during re-entry to do this research. Thus, the capsule will only stay in orbit for a few weeks before returning to Earth, this time at the Southern Launch commercial spaceport site in southern Australia.

The capsule was launched yesterday morning on SpaceX’s Transporter mission, which placed 131 different payloads in orbit.

Overall this entire mission illustrates the advantage of private ownership and competition. Varda has discovered an entirely unexpected income source and customer for its capsules, and it is eager to take advantage of that. Similarly, the Air Force is getting its hypersonic research done now for a fraction of the cost, using Varda as well as Rocket Lab’s HASTE improvisation, using its Electron rocket’s first stage to conduct suborbital hypersonic tests.