Rocket Lab USA Inc. has received a roughly $500 million contract to build and operate an 18-satellite constellation for the Space Development Agency.

The Long Beach-based aerospace company will act as prime contractor for the $515 million firm-fixed price agreement announced on Jan. 8, leading the design, development, production, test, and operations of the satellites, including procurement and integration of the payload subsystems.

Rocket Lab will be paid a base amount of $489 million plus options and incentives of $26 million. 

Peter Beck, the founder and chief executive of Rocket Lab, said the deal makes the company a leading satellite prime contractor. 

“We’ve methodically executed on our strategy of developing and acquiring experienced teams, advanced technology, manufacturing facilities, and a robust spacecraft supply chain to make this possible,” Beck said in a statement. “It’s exciting to now be delivering this capability for government and commercial customers alike.”

The satellites are scheduled for delivery to the Space Development Agency for launch no later than July 2027. The contract also calls for Rocket Lab to operate the satellites through 2030, with an option to continue operating them through 2033.

“(The agency’s) acquisition approach favors speed, schedule certainty, and affordability to deliver next-generation space capabilities to the nation,” Beck said. “We’ve proven Rocket Lab is capable of delivering this across our launch and spacecraft programs and we look forward to delivering it for (the agency).”

The satellite constellation will provide global communication access and deliver persistent global encrypted connectivity to support missions like beyond-line-of-sight targeting and missile warning and missile tracking of advance missile threats, according to a release from the space agency.

All 18 satellites will integrate subsystems and components built in-house by Rocket Lab, including solar panels, structures, star trackers, reaction wheels, radio, flight software, avionics, and launch dispenser, the company said.

The satellites will be built at Rocket Lab’s development and manufacturing complex within the company’s Long Beach headquarters. The facility includes production and test facilities designed to support constellation-class manufacturing and satellite assembly, integration and testing for commercial, civil and national security customers, the company added.

Rocket Lab has a backlog of more than 40 satellites in development and production. The company’s technology and components have been integrated into more than 1,700 satellite missions globally.