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Home News Archive Two Companies Off the Radar Screen Team Up to Launch ORBCOMM Satellites

Two Companies Off the Radar Screen Team Up to Launch ORBCOMM Satellites

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Sierra Nevada Corporation (SNC) is a privately owned company on the edge of many technologies, including small satellite manufacturing, space system development, hybrid propulsion, ISR (intelligence, surveillance and reconnaissance), sensor systems, electronic warfare, and air traffic control.  Employing roughly 2,000 and with revenues of approximately $700 million, this woman-owned business headquartered in Sparks, Nevada has had a 45-year history of growth and entrepreneurship—yet has stayed off the radar screen of many defense industry analysts.   The stealthy nature of this company began to change in mid-2008, when it was selected to be the prime contractor for ORBCOMM’s second generation mobile telecommunications satellites, managing a team that included Boeing, ITT, and Microsat Systems.  The initial ORBCOMM contract was for 18 satellites, and included an option for up to 30 additional satellites.  The initial order was reportedly worth $117 million.

In December 2008, SNC acquired SpaceDev for $38 million, adding nearly 200 employees and considerable innovative space technology and proven space products to its portfolio.  In that same month, SNC received the 2008 David Packard Excellence Award and announced it was joining a team participating in the Google Lunar X Prize race to the moon.

Meanwhile, another company, SpaceX was jumping into the spaceship development business with both feet.  Founded in 2002 by internet entrepreneur (and billionaire) Elan Musk, SpaceX aims to reduce launch costs by a factor of ten.  Headquartered near Northrop Field in Hawthorne, CA, SpaceX developed (and successfully launched) its own “Falcon” rocket.  On July 15, 2009 a Falcon rocket successfully delivered Malaysia’s RazakSAT into orbit.

On September 3, 2009 these two small, entrepreneurial, companies announced that they had agreed to work together to launch the 18 ORBCOMM satellites.  SNC will manage the development and build of the satellites, and SpaceX will launch them via an upgraded version of its Falcon spaceship.  By placing its launch orders with SpaceX, SNC is showing a great deal of trust.  Although there SpaceX has recorded a recent launch success, its history is limited.  Its most important commercial launch, the British Hylas 1 satellite, was recently switched to Arianespace.  Thus, successfully launching 18 ORBCOMM satellites will establish SpaceX’s credibility as a launcher of commercial satellites, and will validate SNC’s judgment as a manager of commercial satellite systems.  A failure will significantly damage both companies.

We wish them both the best, and look forward to hearing more about these two companies, now that they are both on our radar screen.

 

Newsflash

Effective January 1, 2019, Nick Sanders has been named as Editor of two reference books published by LexisNexis. The first book is Matthew Bender’s Accounting for Government Contracts: The Federal Acquisition Regulation. The second book is Matthew Bender’s Accounting for Government Contracts: The Cost Accounting Standards. Nick replaces Darrell Oyer, who has edited those books for many years.