US Space Agency Dishes Out $2.55B Satellite Jackpot To L3Harris, Lockheed, Sierra For Missile Defense Contract

The Space Development Agency of the U.S. awarded satellite contracts to L3Harris Technologies, Inc. LHX, Lockheed Martin Corporation LMT, and Sierra Space to each deliver and operate 18 space vehicles as part of the Tranche 2 Tracking Layer constellation, launching no later than April 2027. The total value of the contracts is $2.55 billion.

The SDA noted the award of three prototype agreements is to build 54 satellites to establish the Tranche 2 (T2) Tracking Layer.

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L3Harris is being awarded a firm fixed-priced OTA agreement with a total potential value of $919 million. 

Lockheed Martin is being awarded a firm fixed-priced OTA agreement with a total potential value of $890 million. 

Sierra Space is being awarded a firm fixed-priced OTA with a total potential value of $740 million.

“The agile response across the space industry is critically important as we deliver to the warfighter this no-fail mission capability of missile warning, missile tracking, and missile defense,” said Derek Tournear, SDA director.

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While the kickoff and early execution of these awards will be accomplished under a continuing resolution, planned execution would be disrupted if a total Defense budget is not passed before the end of March.

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Price Action: LMT shares are trading higher by 0.43% to $459.83 premarket on the last check Wednesday, while LHX shares closed lower by 1.30% to $205.09 on Tuesday.