Pentagon Invests $2.5B in L3Harris, Lockheed, and Sierra Space

The Pentagon has decided to invest a whopping $2.5 billion in three companies — L3Harris, Lockheed Martin, and Sierra Space — to build satellites. These aren’t ordinary satellites, though. They are part of a growing military system managed by the U.S. Space Force’s Space Development Agency (SDA).

This massive project is known as the Proliferated Warfighter Space Architecture, which is essentially a network of satellites designed to enhance the U.S. military’s defense capabilities, particularly against missiles.

Each of the three companies has secured a fixed-price contract to construct 18 satellites. The breakdown is simple: 16 satellites for missile warnings and tracking and two with missile defense infrared sensors. L3Harris bagged a $919 million contract, Lockheed Martin earned $890 million, and Sierra Space secured $740 million. The planned launch date for all of these satellites is set for April 2027.

The Proliferated Warfighter Space Architecture is designed to consist of hundreds of satellites in orbit, which means better resilience and redundancy than our previous setups. Additionally, this architecture is being developed in “tranches,” or stages. Each of these stages represents a new generation of satellites with increasing capabilities for communication and missile defense.

As global events unfold, the Pentagon is ramping up its space ambitions, especially as China’s capabilities in this area continue to grow. This underscores the importance of space in national security efforts. The Space Force’s budget has seen a significant increase, with a request for $30 billion for fiscal 2024 — that’s double the budget from 2021. A significant chunk of this funding is directed at defense contractors and space companies that offer products and services to the military.

It’s worth mentioning that both Lockheed and L3Harris have previously been awarded contracts to build and operate satellites for the same network. Other key players include Northrop Grumman, SpaceX, York Space, and Rocket Lab.

Sierra Space, a privately held offshoot from Colorado-based Sierra Nevada Corporation, recently added about 150 employees who hold security clearances as part of the company’s restructuring efforts after launching its first Dream Chaser spaceplane. The recent Pentagon contract further solidifies the company’s standing in the industry.