Lockheed Martin, Northrop Grumman Win Transport Satellite Contracts

The Space Development Agency (SDA) awarded a combined $1.5 billion to Lockheed Martin Corp. and Northrop Grumman Corp. to build and operate its Tranche 2 Transport Layer (T2TL) Beta variant prototype constellation, the agency announced Monday. Each company will build and operate 36 satellites in three orbital planes of 12 satellites each.

“Tranche 2 brings global persistence for all our capabilities in Tranche 1 and adds advanced tactical data links and future proliferated missions,” Derek Tournear, SDA director, said in a statement.

T2TL will make up a portion of SDA’s Proliferated Warfighter Space Architecture (PWSA)--formerly known as the National Defense Space Architecture. The PWSA will be separated into two areas: the Transport Layer for data transmission and the Tracking Layer for remote sensing and Earth observation.

Lockheed Martin will receive $816 million for the Tranche 2 satellites. SDA previously awarded the company a $187.5 million contract to build 10 of its 28 Tranche 0 satellites and $700 million for 42 Tranche 1 satellites.

"SDA's unique acquisition approach expedites the proliferation of this critical technology, and Lockheed Martin's strategic partnerships with a network of suppliers and small businesses will ensure we're aligned with SDA's strategy for accelerated delivery," says Joe Rickers, Lockheed Martin's vice president for protected communications.

Northrop Grumman will get $744 million for the Tranche 2 satellites; the company was awarded $692 million for 42 Tranche 1 satellites. 

“Creating a low-Earth orbit communications architecture that meets the needs of the warfighter is complex,” notes Blake Bullock, vice president, communication systems, Northrop Grumman. “With Northrop Grumman's extensive military satellite communication experience and deep mission understanding, we are helping SDA make its vision a reality.” 

Originally belonging to the Office of the Under Secretary of Defense for Research and Engineering, SDA became a direct reporting unit in the United States Space Force in 2022. With this latest award, SDA has spent $5.2 billion on 254 satellites since 2020. Satellites per award include:

Tranche 0 Transport Layer: $281.5 million

• York Space Systems: $94 million, 10 satellites
• Lockheed Martin: $187.5 million, 10 satellites

Tranche 0 Tracking Layer: $343 million

• SpaceX: $149 million, 4 satellites
• L3 Harris: $194 million, 4 satellites

Tranche 1 Transport Layer: $1.8 billion

• York Space Systems: $382 million, 42 satellites
• Lockheed Martin: $700 million, 42 satellites
• Northrop Grumman: $692 million, 42 satellites

Tranche 1 Tracking Layer: $1.3 billion

• L3 Harris: $700 million, 14 satellites
• Northrop Grumman: $617 million, 14 satellites

Tranche 2 Transport Layer: $1.5 billion

• Lockheed Martin: $816 million, 36 satellites
• Northrop Grumman: $744 million, 36 satellites