Pentagon awards $1.3 billion in contracts to Northrop Grumman and York for 100 satellites

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Monday, October 30th, 2023 6:47 pm EDT

Key Points

  • The Pentagon’s Space Development Agency (SDA) has awarded approximately $1.3 billion in contracts to York Space and Northrop Grumman to construct 100 communications satellites. These satellites are part of the Proliferated Warfighter Space Architecture (PWSA) and are designated as “Alpha” variant prototypes in the “Tranche 2 Transport Layer” constellation (T2TL-Alpha) to provide encrypted communications for the U.S. military.
  • Northrop Grumman will build 38 “data transport” satellites for $732 million, while York Space will construct 62 satellites for $617 million under the T2TL-Alpha awards. The scheduled launch of these T2TL satellites is expected to commence in 2026.
  • The Pentagon’s increased focus on space is driven by the need to keep pace with China’s growing capabilities in space, which has significant national security implications. The Space Force’s budget has grown, with a $30 billion request for fiscal 2024, with a substantial portion allocated to defense contractors and space companies providing products and services to the military. The SDA has previously awarded contracts to companies like SpaceX, L3Harris, Northrop Grumman, York Space, and Lockheed Martin for satellite construction and operation within its fleet.

The Pentagon’s Space Development Agency (SDA) has awarded contracts totaling around $1.3 billion to York Space and Northrop Grumman for the construction of 100 communications satellites. These satellites are part of the Proliferated Warfighter Space Architecture (PWSA) network and are designated as “Alpha” variant prototypes in the “Tranche 2 Transport Layer” constellation (T2TL-Alpha). Their primary purpose is to provide encrypted communications for the U.S. military. Northrop Grumman will construct 38 “data transport” satellites for $732 million, while York Space will build 62 satellites for $617 million. The SDA’s schedule calls for the launch of the T2TL satellites to begin in 2026.

Notably, Northrop Grumman previously won a contract to build Beta variant satellites for T2TL, securing a $733 million award in August to construct 36 satellites for the T2TL-Beta segment of PWSA, alongside Lockheed Martin. The Pentagon’s increased focus on space is driven by a desire to keep pace with China’s expanding capabilities in this critical domain, which has significant national security implications. The Space Force’s budget has grown significantly, with a $30 billion request for fiscal 2024, much of which supports defense contractors and space companies providing products and services to the military. The SDA has also awarded contracts to SpaceX, L3Harris, and other companies for satellite construction and operation in its fleet.

For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/30/pentagon-awards-satellite-contracts-to-northrop-grumman-york.html