Investing in Space: Pentagon's satellite constellation awards near  billion


A view of SpaceX and U.S. Space Force compound at Cape Canaveral Space Force Station in Florida, United States on December 18, 2021.

Yasin Ozturk | Anadolu Agency | Getty Images

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Overview: PWSA Sweepstakes

I’ve written a bit about the Space Force’s satellite constellation program before however, with new awards already rolling this year, it is value checking in on who’s been added to the fray that I’m calling the PWSA Sweepstakes.

A fast refresher: In the few years for the reason that Space Force turned the primary new U.S. army service department since earlier than the Cold War, one among its models has advanced right into a satellite-building, money-slinging, fast-moving company. Known as SDA, or the Space Development Agency, the unit is aggressively ordering and launching satellites for a brand new community referred to as the “Proliferated Warfighter Space Architecture,” or PWSA.

The concept is to construct an interconnected constellation, a la Starlink, that consists of a whole bunch of satellites, as a substitute of dozens or much less. The purpose of PWSA is to have extra redundancy and better connectivity for decrease threat, as every satellite in the constellation prices a fraction of the highly effective however bespoke army property of the previous. Additionally, every “Tranche” (or technology) is aimed to be greater and badder than the final – increasing the Space Force’s assist of the broader U.S. army with capabilities like communications, location concentrating on and missile protection.

When we final mentioned PWSA in this article, the SDA had awarded about $5 billion in contracts to 5 totally different firms. Now we’re pushing $10 billion in awards, to construct greater than 400 satellites, with seven firms in the combination.

The present PWSA winners, by contact worth, are three of the same old suspects – Northrop Grumman, Lockheed Martin and L3Harris – however then it will get fascinating. York Space has been tapped to make extra satellites than anybody however Northrop Grumman, to the tune of $1.3 billion. Then you’ve got received Rocket Lab and Sierra Space in the combination, who jumped into PWSA with awards this month.

You can see what it is meant to these two most up-to-date additions to this system: Rocket Lab heralded its award as marking a “new period as a number one satellite prime,” whereas Sierra Space emphasized being put “on the brief checklist of firms that may ship, as a chief, in missions crucial to the warfighter.”

A fast caveat is that these contracts aren’t all equal, particularly since they’re fixed-price offers. Each firm bid what they thought they might make the satellites for, and every of the Tranches have totally different layers with various necessities, i.e., totally different use instances and totally different calls for.

But the underside line is that large cash is rolling out now from SDA. Already the company’s launched the primary PWSA satellites it started ordering in 2020, and it has about 350 satellites on faucet for supply and launch in the subsequent three years. SDA’s closing out the Tranche 2 ordering section, and it is already outlined that orders for Tranches 3 and 4 might be coming by means of the top of the last decade.

And there’s one other key a part of these Tranches, in addition to upgrading PWSA’s capabilities: Replenishment. A low Earth orbit constellation means the PWSA satellites will must be changed with newer ones, and firms who ship quickest and carry out the perfect can have even stronger bids for what’s more likely to be extra profitable contracts in the years to return.

What’s up

  • Space funding bounced again in 2023 with $12.5 billion raised, in line with Space Capital’s This fall report. That’s greater than $3 billion above final yr however nonetheless beneath 2021’s report excessive. – CNBC
  • Momentus is working dangerously low on funds: The firm deserted plans for its subsequent mission that was set to launch in March, citing its “restricted liquidity and money steadiness.” Momentus warned shareholders that its “potential to proceed to fund operations for the subsequent few weeks and months might be depending on its potential to lift fairness capital or interact in a strategic transaction,” however that it has no “definitive commitments presently.” – CNBC
  • NASA and Boeing conduct Starliner parachute check: A key milestone earlier than the spacecraft carries crew on a flight check deliberate for April, preliminary evaluation of the parachute drop check suggests it was profitable. – NASA
  • ESA funds will increase 10% to $8.5 billion, with satellite imagery remaining its largest funded obligation. – Payload
  • Pentagon seems to be to decrease labeled boundaries to entry for area firms: The DOD’s assistant secretary of protection for area coverage John Plumb emphasised that the division is placing into motion a memo that “removes legacy classification boundaries which have inhibited our potential to collaborate throughout the U.S. authorities and likewise with allies on points associated to area,” particularly in locations the place these ranges of secrecy are pointless. – SpaceNews
  • Congressional listening to expresses assist for NASA’s Artemis regardless of delays, as members of the company testified earlier than the House Science, Space and Technology Committee, with questions centered on whether or not present timelines are lifelike. NASA leaders imagine the most recent schedule has sufficient “margin” for flexibility to hit its Artemis mission objectives. – SpacePolicyOnline
  • Tom Mueller’s Impulse unveils massive area tug known as Helios, which can characteristic a brand new engine known as Deneb to ship upwards of 4,000 kilograms from low above Earth to distant orbits like GEO. – Impulse Space
  • Redwire deploys roll-out photo voltaic arrays on Ovzon 3 mission, the primary time the corporate used the know-how on a business satellite. – Redwire
  • Astrobotic’s moon mission to expend in Earth’s environment on Jan. 18, because the broken Peregrine spacecraft concludes the corporate’s first lunar touchdown try. – Astrobotic

Industry maneuvers

Market movers

  • KeyBanc begins protection of Rocket Lab with purchase name, placing an obese score on the inventory and an $8 value goal, which means the agency sees the inventory climbing about 50% from present ranges. KeyBanc known as Rocket Lab “one of many handful of firms throughout the Space business with a confirmed enterprise mannequin and viable path to profitability in the subsequent 1-3 years.” – KeyBanc

Boldly going

On the horizon

  • Jan. 18: SpaceX Falcon 9 launches Ax-3 crew mission from Florida.
  • Jan. 18: Astrobotic’s Peregrine lander burns up on reentry above the South Pacific after the primary moon mission was minimize brief.
  • Jan. 19: Axiom’s Ax-3 mission docks with the International Space Station.
  • Jan. 19: Japan’s SLIM mission makes an attempt moon touchdown.
  • Jan. 23: Lockheed Martin reviews This fall outcomes.
  • Jan. 25: Northrop Grumman reviews This fall outcomes.



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