The agreement will provide rapid launch capability for U.S. military flight testing, hypersonic research, and advanced defense technology demonstrations through 2028.

The U.S. Space Force has awarded Rocket Lab USA Inc. a $266 million firm fixed price completion contract to provide suborbital launch services supporting military research, development, testing, and evaluation programs. The award was issued by Space Systems Command (SSC) at Kirtland Air Force Base, New Mexico, which manages many of the Department of Defense’s space acquisition and launch activities.

Under the agreement, Rocket Lab will deliver 12 suborbital launch vehicles, while the government retains options for six additional launches. All missions will be conducted from the Pacific Spaceport Complex in Kodiak, Alaska, with contract performance scheduled to conclude by December 31, 2028.

The contract was awarded following a competitive procurement that attracted three industry bids. At the time of award, the Space Force obligated $112 million in Fiscal Year 2025 Research, Development, Test and Evaluation (RDT&E) funding, reflecting the immediate start of launch campaign preparations.

Deep Technical & Strategic Context Analysis

The award strengthens Rocket Lab’s growing position within the U.S. national security launch market, particularly in the rapidly expanding niche for responsive suborbital testing. Unlike orbital launches that place satellites into space, suborbital missions provide a cost effective method of testing experimental payloads, missile technologies, hypersonic vehicles, sensors, guidance systems, and reentry technologies under realistic flight conditions before operational deployment.

Rocket Lab is expected to support these missions using its Hypersonic Accelerator Suborbital Test Electron (HASTE) vehicle, a modified version of its proven Electron rocket optimized for high speed defense testing. HASTE has emerged as one of the Department of Defense’s preferred commercial platforms because it offers relatively short launch preparation timelines, flexible trajectories, and the ability to carry classified experimental payloads. The vehicle has already supported multiple U.S. defense hypersonic flight campaigns for agencies including the Defense Innovation Unit and the Department of Defense’s Test Resource Management Center.

The contract also reflects a broader Pentagon strategy to expand partnerships with commercial launch providers as demand for hypersonic weapon development accelerates. The United States is simultaneously advancing several long range strike programs, including the Air Force’s Hypersonic Attack Cruise Missile (HACM), the Army’s Long Range Hypersonic Weapon (LRHW), and the Navy’s Conventional Prompt Strike program. Frequent, affordable flight testing has become increasingly important as these systems transition from development into operational capability.

From a procurement perspective, the award uses a firm fixed price completion contract, meaning Rocket Lab assumes much of the cost risk by agreeing to complete the specified launches for a predetermined value. This contract structure incentivizes schedule discipline and cost control while giving the government greater budget certainty compared with cost reimbursable contracts commonly used during early technology development.

Contract Breakdown & Details

Contract Overview

• Contract Value: $266 million
• Contract Type: Firm Fixed Price Completion
• Award Recipient: Rocket Lab USA Inc.
• Headquarters: Long Beach, California

Mission Scope

• 12 guaranteed suborbital launches
• Option for 6 additional launches
• Supports military research, development, testing, and evaluation
• Expected completion: December 31, 2028

Launch Location

• Primary Launch Site: Pacific Spaceport Complex, Kodiak, Alaska

Funding

• Initial Obligation: $112 million
• Funding Source: Fiscal Year 2025 Research, Development, Test and Evaluation (RDT&E)

Competition

• Procurement Method: Competitive acquisition
• Number of Offers Received: Three

Contract Administration

• Contracting Activity: Space Systems Command
• Location: Kirtland Air Force Base, Albuquerque, New Mexico
• Contract Number: FA8818-26-C-B003

Geographic Work Breakdown

The Department of Defense announcement identifies work at a single primary location:

• Pacific Spaceport Complex, Alaska: 100%

Strategic Significance

This award demonstrates the Department of Defense’s continued shift toward leveraging commercial launch providers for high tempo testing rather than relying exclusively on government owned infrastructure. As hypersonic weapons, missile defense interceptors, advanced sensors, and autonomous systems become increasingly central to U.S. military modernization, responsive suborbital launch capacity is emerging as a critical enabling capability.

For Rocket Lab, the contract further expands its national security portfolio beyond satellite launch and spacecraft manufacturing, reinforcing its role as a strategic partner supporting U.S. defense innovation and rapid technology fielding.