Rocket Lab USA, Inc. (RKLB) shares surged 8.14% in pre-market trading following the announcement of a significant contract win from the U.S. Space Force. The space technology company has been selected to compete for the Department of Defense's highest-priority national security missions under the National Security Space Launch (NSSL) Phase 3 Lane 1 program.

The firm-fixed price, indefinite delivery/indefinite quantity (IDIQ) contract has a maximum value of $5.6 billion and includes a five-year ordering period running through June 2029. Importantly, there's potential for an additional five-year extension, which could further bolster Rocket Lab's long-term prospects in the national security space sector.

Rocket Lab's selection for this program is centered around its Neutron rocket, a 13-ton reusable carbon composite medium-lift launch vehicle currently under rapid development. Designed to deploy payloads up to 13,000 kg, Neutron is being positioned to meet the demand for high-assurance national security missions and constellation deployments. The company's CEO, Peter Beck, expressed pride in being chosen for the program, stating, "Supporting assured access to space for the nation's most important missions has always been the goal with our Neutron rocket." This contract not only represents a significant revenue opportunity for Rocket Lab but also demonstrates the U.S. government's confidence in the company's capabilities, particularly with Neutron's first launch scheduled for later this year.