Space Development Agency Award Continues Iridium's Commercial Innovation Delivery Strategy for Government

Rhea-AI Summary

Iridium Communications Inc. (Nasdaq: IRDM) has announced a $491.6 million contract modification awarded by the Space Development Agency (SDA) to the General Dynamics Mission Systems (GDMS) and Iridium team. This modification supports the Ground Management and Integration (GMI) program for the Proliferated Warfighter Space Architecture (PWSA). Iridium's share of the contract is valued at $239 million over five years.

The award builds upon an initial Operations and Integration Contract from 2022 for building ground entry points, operations centers, and managing network operations. Leveraging Iridium's 20+ years of experience in operating a crosslinked low-Earth orbit (LEO) satellite constellation, the GDMS-Iridium team will deliver a forward-compatible, state-of-the-art ground system for SDA's Tranche 2 constellation. This includes services ranging from engineering design and analysis to testing, maintenance, and infrastructure management.

Positive

• Iridium secured a $239 million contract share over five years
• The contract builds upon a previous award, indicating continued trust in Iridium's capabilities
• Leverages Iridium's extensive experience in LEO satellite constellation management

Negative

• None.

Insights

Government Contracts Analyst

This $491.6 million contract modification for Iridium and General Dynamics Mission Systems is a significant win, with Iridium's $239 million share representing a substantial boost to its government business over the next five years. The award builds on their previous contract from 2022, demonstrating continued trust in Iridium's LEO expertise. This reinforces Iridium's position as a key player in government satellite communications and strengthens its revenue stream from high-value, long-term contracts. The partnership with GDMS for the Space Development Agency's Proliferated Warfighter Space Architecture program also opens doors for future opportunities in the growing defense space sector. Investors should view this positively as it diversifies Iridium's revenue sources and leverages its core competencies in a high-priority government program.

Satellite Communications Expert

Iridium's involvement in the SDA's Ground Management and Integration program is a strategic fit that capitalizes on their 20+ years of LEO constellation management experience. This contract highlights the increasing convergence of commercial and military space technologies. Iridium's expertise in crosslinked LEO satellites positions them well for the evolving space defense landscape. The focus on "forward-compatible, state-of-the-art ground systems" suggests potential for technological advancements that could benefit Iridium's commercial offerings as well. The emphasis on space sustainability leadership also aligns with growing industry concerns about orbital debris and space traffic management, potentially enhancing Iridium's reputation as a responsible space operator. This contract could serve as a springboard for Iridium to secure additional government and commercial contracts in the rapidly expanding satellite communications market.

MCLEAN, Va., Oct. 15, 2024 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM), a leading provider of global voice and data satellite communications, today announced the Space Development Agency (SDA) has awarded the General Dynamics Mission Systems (GDMS) and Iridium team a $491.6 million contract modification in support of its Ground Management and Integration (GMI) program for the Proliferated Warfighter Space Architecture (PWSA). Of this amount, Iridium's share has a value of $239 million over five years. This award follows an initial Operations and Integration Contract award in 2022 to build ground entry points and operations centers and manage network operations and systems integration services.

"We are committed to delivering SDA and our warfighters an innovative and effective ground system that leverages the many years of Iridium's unparalleled commercial LEO development and operations expertise, helping to ensure they are prepared for the challenges of today and the future," said Scott Scheimreif, executive vice president, government programs, Iridium. "Iridium is excited to be part of this groundbreaking SDA program with our partner General Dynamics Mission Systems."

With over 20 years of experience operating a crosslinked low-Earth orbit (LEO) satellite constellation, Iridium is the pre-eminent leader in commercial satellite communications network management. This unique expertise which includes ground segments, orbital operations and space sustainability leadership, is dedicated to supporting the SDA's efforts to integrate innovative commercial strategies that help the United States quickly deploy the most effective space technologies available in support of the warfighter. Through this new contract modification, the GDMS-Iridium team will deliver a forward-compatible, state-of-the-art ground system developed in close partnership with SDA and related stakeholders. The companies will manage integration of the ground enterprise with SDA's Tranche 2 constellation. This includes all required services ranging from engineering design and analysis to testing, maintenance, infrastructure management and site support.

For more information about the PWSA and SDA visit: https://www.sda.mil

To learn more about Iridium visit: https://www.iridium.com

About Iridium Communications Inc. 

Iridium^® is the only mobile voice and data satellite communications network that spans the entire globe. Iridium enables connections between people, organizations, and assets to and from anywhere, in real time. Together with its ecosystem of partner companies, Iridium delivers an innovative and rich portfolio of reliable solutions for markets that require truly global communications. In 2024, Iridium acquired Satelles, Inc. and announced the Iridium Satellite Time and Location service. Iridium Communications Inc. is headquartered in McLean, Va., U.S.A., and its common stock trades on the Nasdaq Global Select Market under the ticker symbol IRDM. For more information about Iridium products, services, and partner solutions, visit www.iridium.com. 

Forward-Looking Statements Disclosure

Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The Company has based these statements on its current expectations and the information currently available to us. Forward-looking statements in this press release include statements regarding the value of the contract award and the capabilities of the SDA network. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding U.S. government procurement and development of the SDA network, as well as general industry and economic conditions, and competitive, legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the "SEC") on February 15, 2024, and the Company's Form 10-Q for the quarter ended June 30, 2024, filed with the SEC on July 23, 2024, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium's underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. Iridium's forward-looking statements speak only as of the date of this press release, and Iridium undertakes no obligation to update forward-looking statements.

Press Contact:	Investor Contact:
Jordan Hassin	Kenneth Levy
Iridium Communications Inc.	Iridium Communications Inc.
Jordan.Hassin@Iridium.com	Ken.Levy@Iridium.com
+1 (703) 287-7421	+1 (703) 287-7570
X: @Iridiumcomm

 

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SOURCE Iridium Communications Inc.

FAQ

What is the value of the contract modification awarded to the GDMS-Iridium team by the Space Development Agency (SDA)?

The Space Development Agency (SDA) awarded a $491.6 million contract modification to the General Dynamics Mission Systems (GDMS) and Iridium team for the Ground Management and Integration (GMI) program.

How much is Iridium's (IRDM) share of the SDA contract modification?

Iridium's share of the contract modification is valued at $239 million over five years.

What services will the GDMS-Iridium team provide for SDA's Tranche 2 constellation under this contract?

The team will deliver a forward-compatible, state-of-the-art ground system, managing integration of the ground enterprise with SDA's Tranche 2 constellation. Services include engineering design, analysis, testing, maintenance, infrastructure management, and site support.

How does this contract relate to Iridium's (IRDM) previous work with the Space Development Agency?

This contract modification follows an initial Operations and Integration Contract awarded in 2022 for building ground entry points, operations centers, and managing network operations and systems integration services.