Rocket Lab USA bags $515m contract for 18 T2TL – Beta satellites

Rocket Lab USA, Inc. (Nasdaq: RKLB), a frontrunner in space launch services and advanced satellite technology, has achieved a significant milestone. The company announced its selection by the Space Development Agency (SDA) under a lucrative contract to design and build 18 Tranche 2 Transport Layer-Beta Data Transport Satellites (T2TL – Beta).

Rocket Lab as Prime Contractor

Under the terms of the $515 million USD firm-fixed price agreement, Rocket Lab will spearhead the design, development, production, test, and operation of these cutting-edge satellites. This includes the procurement and integration of payload subsystems. The contract, with a base of $489 million plus $26 million in incentives and options, is a testament to Rocket Lab’s status as a top satellite prime contractor. This agreement also emphasizes the company’s capability to offer supply chain diversity to the Department of Defense (DoD) through vertical integration. Rocket Lab National Security (RLNS), a subsidiary dedicated to serving the U.S. defense and intelligence community, will oversee the project’s execution.

Space Development Agency Awards Major Satellite Contract to Rocket Lab

Innovative Satellites for Enhanced Connectivity

The SDA’s initiative to deploy satellites in two-year “tranches” aims to establish a proliferated constellation in Low Earth Orbit (LEO). This network will provide essential space-based capabilities for joint warfighters, with the T2TL – Beta satellites being a core component. These satellites, integrated into SDA’s Transport Layer, are designed to ensure assured, resilient, and low-latency military data connectivity worldwide, addressing critical DoD needs.

A New Era for Rocket Lab

Rocket Lab’s founder and CEO, Peter Beck, highlighted the significance of this contract in marking a new era for the company as a leading satellite prime. Beck emphasized Rocket Lab’s strategic execution in developing a comprehensive spacecraft supply chain, which will now serve both government and commercial customers. Beck also praised the SDA’s acquisition approach, which prioritizes speed, schedule certainty, and affordability in delivering next-generation space capabilities.

Integration and Manufacturing Expertise

The 18 satellites will incorporate various subsystems and components manufactured by Rocket Lab, such as solar panels, star trackers, and avionics, highlighting the company’s high degree of vertical integration. This approach grants Rocket Lab exceptional control over its supply chain, ensuring efficiency, cost-effectiveness, and quality. The satellite manufacturing will take place at Rocket Lab’s state-of-the-art facility in Long Beach, featuring a 12,000 sq. ft. cleanroom and extensive production and test capabilities.

Launch and Future Prospects

Scheduled for launch in 2027, these satellites represent a major step in Rocket Lab’s journey as a leading provider of advanced spacecraft technology. With over 40 satellites currently in development and production and a significant presence in global satellite missions, Rocket Lab continues to solidify its position in the space technology sector.