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Home » Lockheed Martin Receives $514 Million Contract Increase for Strategic Military Communications Satellites
Defense Contracts

Lockheed Martin Receives $514 Million Contract Increase for Strategic Military Communications Satellites

Daniel Mercer / Defense & Aerospace Analyst
Last updated: September 7, 2026 7:20 am
Daniel Mercer / Defense & Aerospace Analyst
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Executive Summary: 

The U.S. Space Force has awarded Lockheed Martin a $514.4 million contract modification for production of Space Vehicles 23 and 24, expanding a long-running military satellite communications program valued at more than $4.68 billion. The award supports the continued deployment of highly protected space-based communications capabilities critical to U.S. nuclear command, strategic deterrence, and global military operations.

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The U.S. Department of Defense has awarded Lockheed Martin a $514,412,528 contract modification to continue production of two military communications satellites designated Space Vehicles 23 and 24. The award was announced by the Department of Defense and is being managed by the Space Systems Command’s Satellite Communications and Positioning, Navigation, and Timing Contracting Division in Los Angeles, California.

Contents
  • Deep Technical & Strategic Context Analysis
  • Contract Breakdown & Details
    • Program Overview
    • Scope of Work
    • Funding Details
    • Schedule
    • Strategic Significance

The modification, identified as P00200 under contract FA8807-18-C-0009, raises the cumulative value of the program from approximately $4.17 billion to $4.68 billion. Work will be performed at Lockheed Martin’s space systems facility in Littleton, Colorado, with completion scheduled for November 30, 2032. Fiscal Year 2026 procurement funding totaling $514.4 million was obligated at the time of award.

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Deep Technical & Strategic Context Analysis

Although the Department of Defense announcement did not publicly identify the specific satellite constellation, the Space Vehicle designation and contract structure indicate continued investment in protected military satellite communications infrastructure, one of the most strategically important segments of the U.S. national security space architecture.

Protected military communications satellites provide resilient, jam-resistant, and survivable connectivity for U.S. and allied forces operating in contested environments. These systems are designed to maintain communications during electronic warfare campaigns, cyber attacks, anti-satellite threats, and even nuclear conflict scenarios. Such capabilities support strategic command and control networks, including links between national leadership, combatant commands, deployed forces, and elements of the nuclear triad.

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The contract modification also highlights a common defense acquisition mechanism. Rather than issuing an entirely new procurement award, the government often expands an existing production contract through a modification. This approach reduces administrative delays, preserves manufacturing continuity, and allows suppliers to maintain specialized workforce expertise and supply chains over multi-year production cycles.

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The award comes amid growing concern within the U.S. Space Force regarding adversary counterspace capabilities. Both China and Russia have invested heavily in electronic warfare systems, kinetic anti-satellite weapons, orbital surveillance platforms, and cyber tools intended to disrupt Western space operations. As a result, protected communications satellites have become a central pillar of U.S. efforts to build resilient space architectures capable of operating during high-end conflict.

Contract Breakdown & Details

Program Overview

  • Prime Contractor: Lockheed Martin
  • Location: Littleton, Colorado
  • Contract Number: FA8807-18-C-0009
  • Modification Number: P00200
  • Contracting Authority: Space Systems Command, Satellite Communications and Positioning, Navigation, and Timing Contracting Division
  • Award Value: $514,412,528
  • Previous Contract Value: $4,168,713,596
  • New Total Contract Value: $4,683,126,124
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Scope of Work

  • Production of Space Vehicles 23 and 24
  • Continued manufacturing and integration of military communications satellite systems
  • Long-term support of U.S. Space Force satellite communications architecture
  • Sustainment of industrial base capabilities for national security space programs

Funding Details

  • Fiscal Year 2026 Procurement Funds Obligated: $514,412,528
  • Funding Status: Fully obligated at time of award

Schedule

  • Work Location: Littleton, Colorado
  • Expected Completion Date: November 30, 2032

Strategic Significance

  • Supports resilient military communications during contested operations
  • Enhances survivability of U.S. command-and-control networks
  • Strengthens space-based support for joint and coalition forces
  • Contributes to broader Space Force modernization efforts focused on protected satellite communications
  • Reinforces U.S. deterrence and strategic stability in an increasingly contested space domain

TAGGED:Defense contractsSpace Systems Command
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ByDaniel Mercer / Defense & Aerospace Analyst
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Daniel Mercer is a defense and aerospace analyst at TheDefenseWatch.com covering military aviation, aerospace technology, unmanned systems, air warfare, and defense procurement. His reporting uses official documents, government and military statements, company announcements, and other public sources.
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