Updated Aug. 19
WASHINGTON — The Space Development Agency awarded contracts to Terran Orbital and York Space Systems to build and operate 10 satellites each for the military’s low Earth orbit communications network, the agency announced Aug. 16.
The contracts, valued at $254 million for Terran Orbital and $170 million for York Space, are for the final 20 satellites of SDA’s Tranche 2 Transport Layer Gamma program. Delivery is expected in the fourth quarter of fiscal year 2027.
These satellites will form part of the Proliferated Warfighter Space Architecture, a constellation of data relay and sensor satellites designed to provide global communications and missile detection capabilities.
“The Gamma satellites will demonstrate global communications access and operationalize persistent global encrypted connectivity to support missions like beyond line-of-sight targeting,” SDA Director Derek Tournear said in a statement.
First Terran contract as a prime
The award is significant for Terran Orbital, as it represents the company’s first prime contract directly supporting SDA, which is part of the U.S. Space Force. Previously, Terran Orbital has served as a subcontractor to Lockheed Martin in SDA procurements.
This development comes a day after Lockheed Martin announced plans to acquire Terran Orbital. From: “This development comes a day after Lockheed Martin announced plans to acquire Terran Orbital.
A Lockheed Martin spokesperson said that Terran Orbital, after the acquisition is completed, will be a wholly owned subsidiary of Lockheed Martin, and SDA’s Gamma satellite contract will remain with Terran Orbital.
SDA has previously ordered 190 satellites for the Transport Layer Tranche 2, including 100 “Alpha” satellites from Northrop Grumman and York Space Systems, and 90 “Beta” satellites from Lockheed Martin, Northrop Grumman, and Rocket Lab USA.
The agency reported that it evaluated eight proposals before selecting Terran Orbital and York Space for the Gamma satellite procurement.
