The U.S. Space Force awarded K2 Space a $22.9 million contract to test laser terminals designed to transmit data directly between satellites in orbit, according to an announcement on July 31. Under the agreement, the Torrance, California-based company will procure, integrate, launch, and operate two Enterprise Space Terminals as hosted payloads on separate K2 satellites by 2028.
K2 Space Contract Scope and Satellite Integration
K2 Space will integrate the terminals with its satellite buses and manage spacecraft operations during the test, according to the contract details. A hosted payload relies on the host spacecraft for power, thermal control, pointing, and communications support. The initial award does not specify which companies will supply the two optical terminals for the flight demonstration.
Did you know? Optical communications use tightly focused laser beams to transmit data between satellites, requiring precise pointing and tracking when spacecraft are separated by thousands of miles and moving relative to one another.
Enterprise Space Terminal Program Suppliers
Space Systems Command previously selected CACI International, General Atomics, and Viasat as Phase 3 suppliers under the Enterprise Space Terminal program, according to Space Force records. That roughly $100 million effort, launched in 2024, aims to develop and evaluate optical communications hardware from multiple vendors using common technical standards. The military has not yet disclosed whether K2 will purchase both flight units from one company or select terminals from two separate suppliers.
Expanding Military Optical Networks in Space
This optical capability is growing more critical as the Pentagon develops distributed sensor networks across low, medium, and higher Earth orbits, according to acquisition documents. These networks require satellites to pass missile-warning, tracking, and targeting data quickly among spacecraft, ground systems, and military users. Funding for the flight experiment comes from the Space-Based Sensing and Targeting portfolio, which oversees programs like the Space-Based Airborne Moving Target Indicator and the Space Data Network.
K2 secured the contract through the FreeSol Broad Agency Announcement, a contracting vehicle used by the Space Force to solicit commercial technologies and research proposals outside traditional acquisition programs. This award follows K2’s selection as a vendor under the Pentagon’s Overhead Persistent Infrared Space Modernization Initiative, or OPIR SMI, which supports research and development for space-based missile warning and defense technologies.
Frequently Asked Questions
What is the value of the K2 Space contract?
The U.S. Space Force awarded K2 Space a $22.9 million contract, according to the July announcement.
When is the satellite laser terminal demonstration scheduled to conclude?
The demonstration is scheduled to be completed by 2028, according to project timelines.
Which companies are Phase 3 suppliers for the Enterprise Space Terminal program?
Space Systems Command selected CACI International, General Atomics, and Viasat as Phase 3 suppliers, according to Space Systems Command.
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