MDA has signed a contract with Globalstar as the prime contractor for 17 satellites to replenish its constellation and includes an option for an additional nine satellites. It also started a noteworthy partnership with Rocket Lab.
The contract comes with the news that Globalstar has a “potential customer” that “will reimburse Globalstar for 95% of the approved capital expenditures Globalstar makes in connection with the new satellites.”
In the Globalstar press release David Kagan, Globalstar’s CEO said, “After running a competitive process with multiple bidders, we are very pleased to announce the selection of MDA in partnership with Rocket Lab for the construction of our new satellites. The combination of these vendors offered us the best overall balance of innovation, technical capability, schedule reliability and cost. These new satellites will ensure Globalstar’s ability to provide the highest quality mobile satellite services to its customer over the long-term. We look forward to beginning the process of bending metal and readying the new satellites for launch beginning in approximately three years.”
Globalstar is known for developing the SPOT Satellite GPS Messenger used for personal safety and developing “next-generation IoT products and modules, and cloud-based telematics solutions.”
The initial contract is valued at US$327 million (CA$415M). If Globalstar exercises its option for the additional nine satellites, MDA could see the contract grow by another US$102.6 million (CA$130M). That would the bring total contract value to CA$545 million. This is a big win for MDA.
While MDA is well known for satellite delivery antenna and electronic subsystems, it hasn’t won contracts as the prime contractor for satellite constellations other than the Canadian government RADARSAT Constellation Mission.
Also announced today, and which is noteworthy, is the new relationship with Rocket Lab who will design and manufacture the satellite bus. MDA will then take delivery of the satellite buses, perform the assembly, integration and test of the satellites. MDA is also leading the development of the payload.
In it’s own press release Mike Greenley, CEO of MDA said “The expertise and ability of our Satellite Systems team to provide industry-leading innovative and competitive satellite solutions is second to none, and we are honoured by Globalstar’s confidence and trust in selecting MDA as the prime contractor for its new satellites. Combining our deep expertise with new partners like Rocket Lab to bring exciting capability to the rapidly growing LEO constellation market further strengthens our position in the global satellite systems market and demonstrates MDA’s increasing role at the heart of the expanding space economy.”
MDA competed the satellite bus contract and Rocket Lab was the winner. Rocket Lab’s contract is valued at US$143 million. This new relationship could be the beginning of a potential fruitful partnership. Rocket Lab has been aggressively trying to expand its business beyond launch and included the acquisition of Toronto based Sinclair Interplanetary who make reaction wheels. The company has also developed the small satellite platform called Photon which was led by Grant Bonin who developed his engineering skills and ideas at Toronto’s Space Flight Laboratory.
In a Rocket Lab press release Peter Beck, Founder and CEO said “We are thrilled to be collaborating with MDA to develop Globalstar’s new satellites and are honoured to have the trust and support of two of the space industry’s most innovative companies. With this contract Rocket Lab is executing on its strategy to go beyond launch and lead the new space economy by delivering complete mission solutions spanning spacecraft manufacture, satellite subsystems, flight software, ground operations, and launch.”
The initial 17 satellites are scheduled to be completed by 2025 and launched by the end of that year. No launch provider has been selected yet, though one would presume Rocket Lab might have an inside track on this. Rocket Lab will design and manufacture the satellite bus for the 500kg satellites at its Long Beach facility.
MDA will report its fourth quarter and full year 2021 financial results on March 17, 2022. The company said today the contract will be added to its “backlog in the first quarter of fiscal 2022.”