Rocket Lab stock surged Tuesday after the SpaceX rival announced it was selected to participate in two multibillion dollar contracts for the U.S. and United Kingdom.
Rocket Lab late Monday reported that it was selected to participate in two defense initiatives to advance hypersonic technology using its HASTE launch vehicle.
The U.S. Air Force tapped Rocket Lab to participate in the Enterprise-Wide Agile Acquisition Contract (EWAAC). The EWAAC is a $46 billion, indefinite delivery-indefinite quantity (IDIQ) contract that runs through 2031 and allows the Air Force to quickly procure innovative technologies and engineering services. IDIQ contracts do not specify the exact quantity of goods or services for the order. Rather, they provide greater acquisition flexibility by issuing individual task orders over a given period.
Meanwhile, the U.K. Ministry of Defense selected Rocket Lab for its $1.3 billion Hypersonic Technologies & Capability Development Framework (HTCDF), which aims to rapidly advance hypersonic capabilities for the U.K. As a newly-selected supplier to the HTCDF, Rocket Lab is eligible to provide services, technology and testing capabilities to support developing the U.K.'s hypersonic technology.
Rocket Lab said it plans to bid for contracts and task orders across both programs with its Hypersonic Accelerator Suborbital Test Electron (HASTE) launch vehicle, as well as other engineering, design and launch services. The HASTE is a suborbital variant of the company's Electron — a reusable, small orbital rocket.
Rocket Lab said it has completed three HASTE launches for the U.S. Department of Defense so far.
Rocket Lab Stock
RKLB stock spiked 10% Tuesday. Shares have trended mostly sideways over the past six weeks, looking to form a bottom to a three-month consolidation.
Rocket Lab has tumbled from its Jan. 24 record high of 33.34 and is down 17% this year through Tuesday's close.
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