Rocket Lab Inc. filed a protest against NASA over its choice of Blue Origin Enterprises for the $700 million Mars telecommunications network contract, saying that the space agency’s decision is at odds with congressional eligibility criteria.
The $41.8 billion public company announced in a Sept. 11 post on X that the protest, filed with the Government Accountability Office, is to make sure the procurement standards are upheld to protect public investment and fair competition.
“In addition, the agency’s punitive review of Rocket Lab’s technical volume was inconsistent, making incorrect assertions and conclusions,” the post read.
In a statement obtained by WESH 2 News, Blue Origin responded that any delays may risk a timely launch for the orbiter. The company is tasked to deliver the spacecraft by the end of 2028, with the goal to go into operation by 2030.
“We remain confident in the strength of our proposal, in NASA’s rigorous selection process, and in Congress’ clear intent to support competition for the Mars Telecommunications Network program,” the company said. “We look forward to advancing this urgent mission.”
The Jeff Bezos-owned company has been the main competitor with Rocket Lab over the contract, which seeks to put an orbiter around the Red Planet to relay communications between Earth and Mars. According to a Blue Origins press release on Sept. 2, the orbiter would support a network that allows for “near-continuous communications” between the two, transmitting scientific data, images, navigation and mission information for Mars spacecraft.
Rocket Lab did not immediately respond to the Business Journal’s request for comments. Since announcing the protest, its stock rose above 12% to close at $69.89 per share Sept. 21.
Telecommunication in space
Since its $8 billion acquisition of Iridium Communications Inc. in July, Rocket Lab has been growing steadily its telecommunications footprint. Though the deal is projected to close by mid-2027, the company has in April completed its purchase of Mynaric to advance its hold on laser-based space communications.
Its stock market performance, on the other hand, has been fluctuating.
After hitting its historic high of $151 per share May 27 amid a 63% year-over-year increase in first quarter revenue – setting a record at $200.3 million – it dropped under $100 per share in less than a month.
The pending launch of its Neutron rocket is likely to further complicate its stock performance, though the company may have a more stable footing due to a diversified portfolio, analysts noted.
