U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders
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- The Space Force awarded $1.6 billion to Rocket Lab and Northrop Grumman for building satellites designed to detect hypersonic missile threats.
- Rocket Lab’s $805 million contract is the company’s largest ever, marking its evolution from a launch provider to a vertically integrated space contractor.
- The 36 total satellites are part of a network providing near-continuous global coverage for missile warning, tracking, and military communications in low Earth orbit.
The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.
The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.
Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.
The contract announced Friday is valued at $764 million, and the Falls Church, Va. company is now set to deliver a total of 150 satellites for the network.
Southern California defense startups are receiving millions in funding as Silicon Valley venture capital firms and legacy tech giants do an about-turn on the sector.
The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.
Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.
“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.
The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.
Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion. Lockheed Martin said the work would be split between its California site and Denver.
Aerospace companies are sprouting all across Southern California, breathing new life into an industry that once powered the regional economy.
Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.
Northrop Grumman said the satellites are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.
Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.
Rocket Lab shares rose nearly 18%, or $10.60, to close at $70.52 on Friday. Northop Grumman shares rose 1.6%, or $8.94, to close at $568.46.
