Rocket Lab receives $515m contract from Space Development Agency

Rocket Lab has secured a contract with the Space Development Agency (SDA) to design and construct 18 Tranche 2 Transport Layer-Beta Data Transport Satellites (T2TL – Beta). The firm-fixed-price agreement, valued at $515m, establishes Rocket Lab as the prime contractor, overseeing the entire process from design and development to production, testing, and operations of the satellites.

Acting as the prime contractor, Rocket Lab will lead the procurement and integration of the payload subsystems. The contract, consisting of a $489m base and $26m in incentives and options, positions Rocket Lab as a key satellite prime contractor, contributing to the Department of Defense’s (DoD) supply chain diversity through vertical integration. The execution of the contract falls under Rocket Lab National Security (RLNS), a wholly-owned subsidiary dedicated to meeting the requirements of the US defence and intelligence community and its allies.

The SDA’s satellite procurement follows a two-year “tranche” approach to establish a proliferated constellation in Low Earth Orbit (LEO) for delivering essential space-based capabilities to the joint warfighter. The T2TL – Beta satellites, part of the Tranche 2 programme, will integrate into SDA’s Transport Layer, providing assured, resilient, low-latency military data and connectivity globally to meet DoD needs.

Speaking about the deal, Peter Beck, Founder and CEO, of Rocket Lab, said: “This contract marks the beginning of Rocket Lab’s new era as a leading satellite prime. We’ve methodically executed 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 feature subsystems and components produced in-house by Rocket Lab, including solar panels, structures, star trackers, reaction wheels, radio, flight software, avionics, and launch dispensers. This high degree of vertical integration gives Rocket Lab control over the supply chain, ensuring efficiency and certainty in terms of cost, schedule, and quality. The satellites will be manufactured at Rocket Lab’s advanced spacecraft development complex in Long Beach, with a scheduled launch in 2027.

Rocket Lab currently has a backlog of more than 40 satellites in development and production. The company’s satellite technology and components have been integrated into over 1,700 satellite missions worldwide.