Rocket Lab USA (NASDAQ: RKLB) slipped in overnight trading after the space company formally challenged NASA’s decision to award Blue Origin a $700 million Mars Telecommunications Network contract.
Rocket Lab filed a protest with the U.S. Government Accountability Office, arguing that NASA’s evaluation was inconsistent with eligibility criteria mandated by Congress.
“NASA’s award decision appears to be inconsistent with the eligibility criteria mandated by Congress,” Rocket Lab said in a statement posted to X.
The company further alleged that NASA conducted a “punitive review” of its technical submission that resulted in “incorrect assertions and conclusions.”
“Procurement standards exist to ensure fair competition and protect public investment,” Rocket Lab added, framing the challenge as a defense of critical long-term American infrastructure at Mars.
Congress appropriated $700 million in July 2025 for a high-performance Mars telecommunications orbiter, requiring eligible bidders to be U.S. commercial providers with prior NASA funding for a Mars Sample Return study and a separately launched communications orbiter proposal.
Rocket Lab claimed it was the only commercial bidder to propose a standalone telecommunications spacecraft, arguing its lower-cost Mars Sample Return architecture featured a dedicated communications orbiter meeting the statutory conditions.
NASA selected Blue Origin to design, build, launch, and operate the Mars Telecommunications Network under a firm-fixed-price contract, with spacecraft delivery required by December 31, 2028, and full operations at Mars expected by the end of 2030.
Despite its name, the network will initially consist of a single orbiter, supporting future robotic missions, a potential Mars Sample Return campaign, and eventual human exploration of the planet.
The contract fills a pressing infrastructure gap, as NASA’s primary Mars relay assets are aging significantly, with Mars Odyssey having launched in 2001 and the Mars Reconnaissance Orbiter in 2005.
Rocket Lab had proposed an orbiter built on its flight-proven Explorer spacecraft platform in March, featuring optical communications, an aerosynchronous orbit, and vertically integrated components launchable aboard Neutron or another medium- or heavy-lift rocket.
The company also cited the twin Escapade spacecraft it built for NASA as proof of its ability to deliver interplanetary hardware on a fixed-price contract and a tight schedule, with those probes launched aboard Blue Origin’s New Glenn in November 2025 and expected to reach Mars in September 2027.
RKLB stock closed 2% higher at $62.95 on Friday before slipping 2% overnight, extending what marked the company’s fifth consecutive weekly loss.
Retail sentiment on Stocktwits has turned “bearish” over the past week, with one user warning that the stock “will be in the 40s soon” given that the Neutron rocket remains off the launch pad and unlikely to deploy satellites until well into next year.
Despite recent weakness, RKLB stock has gained 30% over the past year, reflecting broader investor confidence in the company’s long-term commercial space ambitions even as near-term contract setbacks weigh on sentiment.
