Space Norway satellite delays show how rough COVID hit Northrop Grumman

It’s rare that satellite operators, especially those not publicly traded, give granular details about the reasons for their programmatic delays. Sometimes, however, regulators require these disclosures, particularly when operators ask for extensions on milestones. 

Such was the case for Space Norway, a state-run operator that ordered two satellites from Northrop Grumman in June 2019, with the expectation that they would launch by the end of March 2023. The satellites form the Arctic Satellite Broadband Mission (ASBM) and are part of a rare triple-operator satellite system – each satellite carries one communications payload apiece for Space Norway, Viasat/Inmarsat, and the U.S. Space Force.  

Northrop Grumman won’t finish building the pair of satellites until this November, a delay that bumped Space Norway’s SpaceX Falcon 9 mission to a window stretching from Oct. 1, 2023, to Jan. 31, 2024. In requesting more time to meet an FCC milestone, Space Norway attributed the delay to the following reasons: 

• Northrop Grumman shifting resources internally to build four C-band satellites for Intelsat and SES (two apiece), deprioritizing the ASBM satellites.  

• COVID-19 outbreaks across Northrop Grumman’s assembly, integration, and test teams.  

• An “industry alert” on reaction wheels from an unnamed supplier that paused manufacturing for a time (hint – it was Honeywell). 

• And 19 subcontractors terminating their contracts with Northrop Grumman between 2020 and 2022, citing COVID-19. 

Key takeaways from this news: 

• Even though manufacturers hate to say it, they can have too much of a good thing. Northrop Grumman was, according to Space Norway, unable or unwilling to prioritize its satellites when faced with orders from Intelsat and SES, two operators chasing billions of dollars for a spectrum program that was far less tolerant of delays.  

• And while COVID-19 feels like a distant memory, the satellite industry is still dealing with its aftereffects on multiyear programs, compounded by supply chain stresses that acutely impacted component suppliers.  

• Lastly, domestic government customers are a top priority. Northrop Grumman does not appear to have suffered many delays with the Space Force payloads it built. Those were completed in June and November of last year.  

Of course, in a three-legged race, no one can cross the finish line until everyone does, so all three tenants are now stuck in the same holding pattern. Fortunately, the FCC granted Space Norway an extension, but the operator will owe a $5.7-million surety bond should it fail to launch by Nov. 3, 2024. 

SOURCE: https://docs.fcc.gov/public/attachments/DA-23-922A1.pdf