SpaceX Isn't Rocket Lab's Biggest Threat Now -- Blue Origin Is

In May 2026, NASA issued a Request for Proposals inviting space companies to bid to build it a Mars Telecommunications Network, or MTN, comprising multiple satellites orbiting the Red Planet. Rocket Lab (NASDAQ: RKLB) wanted the work, saying it's "well positioned" to build the MTN and promising to "put our best foot forward" and "see who wins."

Well, now we know the result -- and it wasn't Rocket Lab that won.

Image source: Getty Images.

Blue Origin for the win

Instead of Peter Beck and Rocket Lab, it's Jeff Bezos and Blue Origin who will build MTN for NASA. For an estimated $700 million, Blue Origin will deliver a single high-performance Mars Telecommunications Orbiter (MTO) to NASA no later than Dec. 31, 2028. The spacecraft will be based on Blue Origin's internally developed Blue Ring spacecraft, designed for low earth orbit and deep-space missions.

Of course, "network" implies more than just one satellite. (And indeed, Blue Origin says it's scaling capacity to produce as many as four Blue Rings per year.) That probably means MTN will involve more than just this single, first satellite. Although it will be delivered before 2029, NASA says MTN won't be "operational" until 2030.

This seems to imply that after the first $700 million win, there will be more MTN competitions. But will all of them go to Blue Origin?

Rocket Lab appeals

Not necessarily. In fact, even this first MTN contract may not go to Blue Origin -- not if Rocket Lab has anything to say about it.

On Sept. 11, Rocket Lab formally protested NASA's award of MTN to Blue Origin. "NASA's award decision appears to be inconsistent with the eligibility criteria mandated by Congress," alleged Rocket Lab, calling the agency's decision "punitive," "inconsistent," and "incorrect."

Rocket Lab has filed a formal protest with the Government Accountability Office challenging NASA's award decision for the Mars Telecommunications Network.

NASA's award decision appears to be inconsistent with the eligibility criteria mandated by Congress. In addition, the... pic.twitter.com/g48AWgiIoR

-- Rocket Lab (@RocketLab) September 11, 2026

What happens next?

Blue Origin is understandably upset by Rocket Lab's decision to challenge its award. Why?

For one thing, it argues that NASA's selection process was "rigorous," its bid was "strong," and it deserved to win over Rocket Lab.

For another, orbital mechanics take no notice of government contracting procedures. While this dispute works its way through the Government Accountability Office (GAO) and (maybe) the courts, Mars won't stop moving. A too-long delay could mean that no one gets to send an MTN to Mars during the upcoming 2028 launch window, forcing a 26-month delay until the next window opens.

Regardless, now that Rocket Lab has started the protest ball rolling, here's what comes next:

First, NASA has 30 days from the date the protest was filed to provide the GAO (and Rocket Lab and Blue Origin) a report on how it picked the MTN winner. Within 10 days after that, Rocket Lab and Blue Origin must submit any comments they have on the report. Then, GAO has 60 days (so now we're up to 100 total days past Sept. 11) to rule on the case.

If the GAO rules in Rocket Lab's favor, NASA will be instructed to reevaluate the companies' bids and potentially award the contract to Rocket Lab. If GAO rules against Rocket Lab, then Blue Origin can resume work on MTN... unless Rocket Lab escalates and sues NASA in federal court -- which could delay MTN even longer.

This is similar to how things played out back in 2021, when Blue Origin challenged a NASA lunar lander contract awarded to now-public Space Exploration Technologies, lost at the GAO, and then filed suit in federal court. (With this context in mind, Blue Origin's argument that it is being treated unfairly by Rocket Lab's protest rings a little hollow.)

How bad is this for Rocket Lab?

Earlier this year, Rocket Lab missed out on a potential $4 billion payday when Congress cut funding for a proposed $4 billion mission to retrieve air and soil samples from Mars. Now Rocket Lab's fighting from its back foot, hoping to claw back another lost Mars contract.

Mars is starting to look like the place where Rocket Lab contracts go to die.

Fortunately, things look a bit better for Rocket Lab back here on Earth. On Sept. 24, shareholders of Iridium Communications approved Rocket Lab's offer to purchase that company for $8 billion. Once that merger closes next year, Rocket Lab will add Iridium's $884 million in annual revenue to its own $769 million in annual sales. When that happens, Rocket Lab will become instantly profitable and free-cash-flow-positive -- one of the few space companies that can make such a claim.

And it won't have to sue anyone to make it happen.

Rich Smith has positions in Rocket Lab. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.