Rocket Lab’s $143 Million Contract With MDA Space
It seems each day Rocket Lab announces another big contract, plan, or general progress. Over the past few years and especially recently, the company has managed to grow significantly and continue to innovate and work towards a better future. Following the company’s theme, it was recently awarded a large contract from another company within the space industry.
Yesterday, February 24th, Rocket Lab announced they had signed a $143 million contract with MDA Space. This award is intended to make Rocket Lab lead the design and manufacture of 17 spacecraft buses for Globalstar’s new Low Earth Orbit satellites. This partnership is meant to allow each party involved to prosper with additional resources, opportunities, and more.
Over the past few years, we have seen Rocket Lab expand and work with different companies and agencies. This includes the acquisition of many companies and different contracts awarded from large agencies such as NASA. Its clear Rocket Lab is confident in its capabilities and the benefits that can be provided when working with other parties within the space industry. This most recent contract is just another example of many. Here I will go more in-depth into the background of the different companies involved along with important details about the partnership.
Contract Overview
Rocket Lab has been making consistent progress over the past few years. This is thanks to ambitious goals along with continued partnerships and contracts with different companies and agencies. Yesterday, Rocket Lab was awarded another contract totaling $143 million working with MDA Space and Globalstar. MDA Space is a leading provider of advanced technology and services to the rapidly expanding global space industry. Within this contract, Rocket Lab will lead the design and manufacture of 17 spacecraft buses for Globalstar’s new Low Earth Orbit satellites. Globalstar, Inc. is a leading provider of Mobile Satellite Services including customizable satellite IoT solutions for individuals and businesses globally. Specifically, yesterday Rocket Lab tweeted saying, “Today we signed a $143 million contract with @MDA_Space to lead the design and manufacture of 17 spacecraft buses for @Globalstar’s new Low Earth Orbit satellites.” In addition, Rocket Lab went on to Tweet about the contract mentioning, “Leveraging our vertical integration, the spacecraft will feature subsystems by our recently acquired companies incl. solar panels & structures from SolAero Technologies, software from ASI, & reaction wheels from Sinclair Interplanetary.” We have seen Rocket Lab acquire a large list of companies over the past few years. These assets are helping the company with many aspects of its business including this most recent award and partnership with MDA Space.
Taking a closer look at the contract, Rocket Lab will lead the development of the spacecraft buses, while MDA will act as the prime contractor to manufacture Globalstar’s satellites, lead the development of the payload, and perform the final satellite assembly, integration, and test. The partnership between Rocket Lab and MDA brings together two of the space industry’s most innovative satellite companies. The total initial contract value for Rocket Lab is US$143 million, with options to provide the satellite operations control center, launch dispensers, launch integration, and up to nine additional spacecraft with flexibility in timing to order such spacecraft. The satellites will integrate with and replenish Globalstar’s current constellation, ensuring service continuity. Globalstar expects to launch the satellites by the end of 2025. CEO of Rocket Lab, Peter Beck said, “We are thrilled to be collaborating with MDA to develop Globalstar’s new satellites and are honored to have the trust and support of two of the space industry’s most innovative companies,” he also mentioned, “With this contract, Rocket Lab is executing on its strategy to go beyond launch and lead the new space economy by delivering complete mission solutions spanning spacecraft manufacture, satellite subsystems, flight software, ground operations, and launch.” While Rocket Lab has put a lot of focus on Electron and their launch services, they are interested in a lot more regarding the space industry. “Cross-company collaboration and co-development is key to bringing new capabilities to market quickly to meet growing customer demand for advanced satellite technology,” said Mike Greenley, CEO of MDA. He also pointed out, “Rocket Lab is a strong fit for MDA and working with them on this system is an opportunity to flex, expand, and strengthen the capabilities of both companies, now and in the future.”
All 17 of the 500kg spacecraft will be designed and manufactured at Rocket Lab’s Long Beach production complex and headquarters, where a new high-volume spacecraft manufacturing line is being developed to support growing customer demand for Rocket Lab satellites. Leveraging Rocket Lab’s vertically integrated space systems capabilities, the satellites will feature components and subsystems produced by Rocket Lab’s recently acquired companies including solar panels and structures from SolAero Technologies in Albuquerque, New Mexico, software from ASI by Rocket Lab in Denver, Colorado, and reaction wheels from Sinclair Interplanetary in Toronto, Canada. The telemetry and control radio for all spacecraft will also be a C-band variant of Rocket Lab’s Frontier Satellite Radio. The contract is the result of a very detailed and highly competitive bid and evaluation process and Rocket Lab is honored to have been selected by MDA. Rocket Lab’s proposal met MDA’s and Globalstar’s stringent technical and schedule requirements, offered efficiencies through Rocket Lab’s high level of vertical integration, and that there is also strong cultural and operational alignment between the companies to deliver innovation and agility in today’s satellite market. Rocket Lab’s suite of spacecraft components and subsystems include reaction wheels, star trackers, space solar power, radios, flight software, ground software, and separation systems. More than 1,000 spacecraft globally have successfully flown with hardware from Rocket Lab and the four companies it has acquired since 2020. This contract is a big step in the future of Rocket Lab and its capabilities. Thanks to the acquisitions Rocket Lab has made over time along with the company’s success, they have enabled themselves to do much more than just launch rockets. In addition, with a contract award of close to $150 million, Rocket Lab will have the resources necessary to lead the development of 17 spacecraft buses. However, with a launch date planned for 2025, all the companies involved will need to work fast and efficiently. If successful, we are likely to see many more contracts and awards headed Rocket Labs’ way for different missions such as these. MDA Space, Globalstar, and Rocket Lab have all teamed up to provide each other with the necessary resources, technology, and equipment to make the ambitious mission possible.
Conclusion
Rocket Lab has been making immense progress in a very short period of time. Whether you are looking at different acquisitions, Electron launches, or even the progress on Neutron, Rocket Lab is not slowing down. Just yesterday they announced they had been awarded $143 million to lead the design and manufacture of 17 spacecraft buses for Globalstar’s new low Earth orbit satellites. This is meant to replenish Globalstar’s current constellation of satellites. With a launch date expected in 2025, all the companies involved will need to work efficiently. We will have to wait and see how Rocket Lab progresses on this contract and the impact it has on the future of the company and the space industry.