The Space Force's $5.6 Billion Launch Program Has a New Contender. Here's Rocket Lab's Path to Winning It.
Rocket Lab's opportunity to land this contract is real, but everything depends on whether Neutron can finally deliver.
Overview
The U.S. military's most sensitive satellites have long ridden to orbit on a short list of trusted rockets. Now Rocket Lab (NASDAQ: RKLB) has forced its way into that conversation, earning a spot to compete in the Space Force's National Security Space Launch (NSSL) Phase 3 Lane 1 program, an arrangement with a maximum value of $5.6 billion through 2029.
But being invited to compete and actually winning work are two very different things, and the entire opportunity hinges on one machine: the Neutron rocket.
Details
Rocket Lab built its business on the small Electron rocket, but Electron is far too small for the heavy national-security payloads the Space Force needs to launch. Neutron, its larger reusable medium-lift vehicle, is the rocket designed to carry them. The program's structure makes this crystal clear: Rocket Lab has been on-ramped as an eligible bidder, but it cannot win any individual task orders until Neutron completes a successful first flight. In other words, no working Neutron means no share of the $5.6 billion in available contracts, full stop.
Source
Originally published at www.fool.com.