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The Pentagon’s Space Development Agency (SDA) has awarded contracts worth .5 billion to aerospace companies Lockheed Martin and Northrop Grumman for the development of prototype communications satellites. These satellites, a part of SDA’s growing constellation, known as the “Beta” variant of the Tranche 2 Transport Layer constellation, will enable the U.S. military to establish a network of hundreds of satellites for encrypted communications.

Lockheed Martin’s contract is valued at 6 million, while Northrop Grumman’s contract is worth 3 million. Each company will build 36 prototype satellites, with the launch expected to commence by September 2026. The SDA received a total of six proposals for the contract.

The Pentagon’s increasing focus on space is driven by the need to match China’s growing capabilities, which have significant implications for national security. As a result, the Space Force has witnessed a significant budget increase, with billion requested for fiscal year 2024. Much of this funding is allocated to defense contractors and space companies involved in providing products and services to the military.

SDA’s satellite constellation, which aims to provide encrypted communications, also holds other capabilities such as missile warning and tracking functionalities. The network is part of the Space Force’s contribution to the Department of Defense’s Joint All-Domain Command and Control, a project aimed at creating a unified network across all military branches.

The SDA has previously awarded contracts to several companies including York Space, SpaceX, Lockheed Martin, Northrop Grumman, and L3Harris to build and operate satellites within its fleet. The launch of the first “Tranche 0” satellites in April marked the initial step in demonstrating the feasibility of SDA’s network.

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