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The Pentagon’s Space Development Agency (SDA) has awarded contracts worth .5 billion to Lockheed Martin and Northrop Grumman for the development of prototype communications satellites. The contracts involve the production of 72 satellites for the “Beta” variant of SDA’s Tranche 2 Transport Layer constellation.

The Tranche 2 Transport Layer constellation is part of a larger network aimed at providing encrypted communications for the U.S. military through a fleet of hundreds of satellites. The network, known as the Proliferated Warfighter Space Architecture, is scheduled to begin launching the prototype satellites by September 2026.

Under the contracts, Lockheed Martin will build 36 satellites worth 6 million, while Northrop Grumman will build 36 satellites worth 3 million. The SDA received six proposals for the contract.

The Pentagon’s increased focus on space capabilities is driven by the need to keep up with China’s advancements in this domain, which has significant implications for national security. The Space Force, in particular, has seen its budget grow, with billion requested for fiscal year 2024. This funding supports defense contractors and space companies providing products and services to the military.

SDA’s satellite network not only aims to provide encrypted communications but also features such as missile warning and tracking capabilities. It falls under the Space Force’s contribution to the Department of Defense’s Joint All-Domain Command and Control project, which seeks to create a unified network across the military branches.

SDA has previously awarded contracts for satellite production and operation to York Space, SpaceX, Lockheed Martin, Northrop Grumman, and L3Harris. The first satellites of SDA’s system were launched in April as part of the initial demonstration of the network’s feasibility.

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