Orbital ATK to Provide Joint Polar Satellite Systems to NASA - Analyst Blog
Orbital ATK, Inc. OA has received a contract to design, produce and integrate up to three Joint Polar Satellite Systems (“JPSS”) spacecraft for the National Aeronautics and Space Administration (“NASA”).
Per the agreement, the company will design and manufacture the JPSS spacecraft, consolidate government-supplied devices, execute satellite-level testing and support in-orbit check-out and mission operations. The satellites will be constructed on Orbital ATK’s medium-class low-altitude-orbit spacecraft, LEOStar-3 platform.
Orbital ATK will initially deliver the JPSS-2 spacecraft of an estimated value of $253 million. The contract has the option to offer two additional spacecraft, namely JPSS-3 and JPSS-4, to the NASA. If this option is exercised, the company will need to deliver two spacecraft with a transaction value of $217 million. Once launched into orbit, each satellite will have a design life of at least seven years.
The JPSS spacecraft will be operated by the National Oceanic and Atmospheric Administration (“NOAA”). The spacecraft will provide critical weather forecasting data, and help to improve environmental and oceanographic science.
Orbital ATK’s Space Systems Group will take full responsibility of the contract. From its facilities in Gilbert, AZ, the company will roll out deliveries of the JPSS-2, JPSS-3 and JPSS-4 satellites in 2020, 2024 and 2028, respectively.
Orbital ATK has supported several missions of the NASA by providing different products and services, including the Fermi and Swift gamma-ray astrophysics satellites and Landsat-8 and ICESat-2 Earth science satellites.
On Mar 13, 2015, the company delivered vital hardware for the United Launch Alliance Atlas V vehicle, which launched four first-of-their-kind NASA satellites.
The company’s efforts on introducing new products and services backed by joint expertise of Orbital Sciences Corporation and Alliant Techsystems Inc. will increase both domestic and international contract flows.
Dulles, VA-based Orbital ATK, an aerospace and defense firm, was formed by the merger between Orbital Sciences and the Aerospace and Defense Groups of Alliant Techsystems.
Orbital ATK currently holds a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the industry include Astronics Corporation ATRO, Rockwell Collins Inc. COL and Spirit AeroSystems Holdings, Inc. SPR. Astronics sports a Zacks Rank #1 (Strong Buy), while Rockwell Collins and Spirit AeroSystems carry a Zacks Rank #2 (Buy).
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