Rocket Lab USA, Inc. (NASDAQ:RKLB) on Thursday said it has successfully completed the Preliminary Design Review (PDR) for the Space Development Agency's Tranche 2 Transport Layer-Beta (T2TL-Beta) program.

This development marks a crucial step in Rocket Lab's role as the prime contractor for the $515 million contract awarded in early 2024.

The contract involves the design, integration, testing, and commissioning of 18 advanced data transport satellites for the U.S. Department of Defense's Proliferated Warfighter Space Architecture.

The PDR marks a significant step towards the detailed design phase, ensuring that Rocket Lab's satellite design meets the mission's rigorous requirements.

This comprehensive review covered mission architecture, vehicle space design, launch operations, and integration plans.

The satellites are crucial for the PWSA, a low-Earth orbit constellation designed to provide secure, low-latency communications and missile tracking for U.S. defense.

Brad Clevenger, Rocket Lab's President and CEO of National Security, emphasized that the milestone demonstrates the company's commitment to delivering world-class satellite solutions.

The satellites will feature Rocket Lab's vertically integrated subsystems, providing control over costs, schedules, and quality.

According to Benzinga Pro, RKLB stock has gained over 402% in the past year. Investors can gain exposure to the stock via ARK Space Exploration & Innovation ETF (BATS:ARKX).

Price Action: RKLB shares closed at $27.36 on Wednesday.