Story
Rocket Lab Secures $266 Million U.S. Defense Contract for Suborbital Launches
Rocket Lab USA Inc. (NASDAQ: RKLB) has been awarded a $266 million firm-fixed-price completion contract by the U.S. Department of Defense for suborbital launch services. The agreement underscores the company's growing role as a provider for national security and research missions.
Contract Details
The contract, awarded by the Space Systems Command at Kirtland Air Force Base, provides for the launch of 12 suborbital vehicles. The agreement also includes options for an additional six launches.
Key terms of the award include:
- Total Value: $266 million
- Type: Firm-fixed-price completion
- Scope: 12 suborbital launch vehicles
- Options: Six additional launches
AdThe Long Beach, California-based company secured the contract through a competitive acquisition process in which three offers were received, according to the announcement.
Financial and Operational Impact
At the time of the award, $112 million in fiscal 2025 research, development, test, and evaluation funds are being obligated. This initial funding secures a significant portion of the contract's value and provides immediate revenue visibility for the company.
All work, including the suborbital launches, will be performed at the Pacific Spaceport Complex in Alaska. The project is expected to be completed by December 31, 2028, establishing a multi-year partnership for Rocket Lab's launch services division.
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