Please ensure Javascript is enabled for purposes of website accessibility

Contracts Galore as NASA Ramps Up Project Artemis to Land on the Moon

By Rich Smith – Aug 17, 2019 at 12:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

NASA has more than 60 years of space experience to share with private industry -- and it will do so in the hopes of getting back to the moon faster.

By 2024, NASA plans to return to the moon, 2028 at the outside.

To help get it there, and keep its astronauts alive when they arrive, the National Aeronautics and Space Administration has been handing out contracts right and left, and promising to spend $20 billion or more on the effort, money that could go directly into the coffers of some of America's most exciting "space companies."

But not all NASA contracts involve the exchange of money -- at least not at first.

Moon visible in a starry sky over trees

Image source: Getty Images.

Late last month, NASA announced its latest batch of partnerships, tapping 13 separate space companies to help "mature industry-developed space technologies" for the agency "and help maintain American leadership in space" through a type of government contract known as a "Space Act Agreement." 

Under these agreements, NASA intends to provide valuable "expertise, facilities, hardware and software" to its partners "at no cost." The goal: to "bring new capabilities to market that could benefit future NASA missions" -- for which NASA will pay.

Some of the companies winning partnership agreements are names you'll have heard of, others not. But one and all, they're companies worth watching as potential investments. As the space race ramps up, and NASA money pours in, the lesser known names could conceivably IPO, and the bigger names will get even bigger.

The usual suspects

Speaking of "big names getting bigger," let's begin with a few names you already know. NASA tapped four big publicly traded companies to partner with it on "maturing" the technologies needed to return to the moon. Two of them, Aerojet Rocketdyne (AJRD -1.66%) and Spirit AeroSystems (SPR -7.18%), received one contract apiece.

Aerojet will use "innovative processes and materials" to "design and manufacture a lightweight rocket engine combustion chamber" for future spacecraft. Meanwhile, Spirit AeroSystems will use "friction stir welding" techniques developed in the construction of NASA's Space Launch System "to improve the durability of low-cost reusable rockets."

Two others -- Lockheed Martin (LMT -2.55%) and Maxar Technologies (MAXR -1.61%) -- were even luckier, winning a pair of contracts each.

Lockheed Martin will test "materials" assembled using additive manufacturing (i.e. 3D printing) "to improve the design of spacecraft that operate in high-temperature environments." And moving a bit off its usual beaten track, Lockheed will also attempt to test how robotics can be used to "help NASA harvest plants on future platforms in deep space."

Maxar, already hired to build the key power and propulsion element for NASA's planned Lunar Gateway space station, will do further power-related work helping NASA "test lightweight solar cells for flexible solar panels." And Maxar will help build "a deployable, semi-rigid radio antenna" that can be packed up tight on a rocketship, then unfolded and deployed in-orbit, helping to solve two key problems with getting space parts from Earth to orbit -- size constraints and cost -- by using transport space more efficiently.

The known unknowns

So right there, you have four name-brand companies, each publicly traded and available for investment today. In our next batch of companies, we turn to firms that are becoming better known as "space companies," but remain privately owned at present. We don't know when, or even if, any of these companies will ever go public. For that matter, because their financials are not publicly disclosed, we don't even know if they'd be worth investing in even if they did go public some day.

But just in case they do, let's take a look:

Blue Origin: Jeff Bezos's pioneering space launch company won a total of three NASA contracts last month, more than any other company on the list. Blue Origin will (1) work on a navigation and guidance system for moon landings, (2) continue its own work on a fuel cell power system for the company's Blue Moon lander, and (3) "mature high-temperature materials for liquid rocket engine nozzles that could be used on lunar landers."

SpaceX (headed by Bezos's tech giant rival Elon Musk) won contracts to perfect the process of in-orbit transfers of propellant -- necessary for its own refuelable Starship -- and also research the procedure for vertically landing large rockets on the Moon.

Finally, privately held Sierra Nevada Corporation will "capture infrared images of their Dream Chaser spacecraft as it reenters Earth's atmosphere" (presumably to see how it deals with friction heat), and also work with NASA to come up with "a method to recover the upper stage of a rocket using a deployable decelerator."

Unknown unknowns

And finally, we come to the new NASA partners, about which we know almost nothing at all. These include names like:

  • Advanced Space of Boulder, Colorado
  • Vulcan Wireless of Carlsbad, California
  • Aerogel Technologies of Boston
  • Anasphere of Bozeman, Montana
  • Bally Ribbon Mills of Bally, Pennsylvania
  • and Colorado Power Electronics Inc. of Fort Collins, Colorado

They'll be working on everything from "lunar navigation technologies" (Advanced Space) to "compact hydrogen generators" (Anasphere) to testing "a new seamless weave for a mechanically deployable carbon fabric heat shield" (Bally Ribbon).

The more progress they make, the closer NASA will get to returning to the moon. And the more that project advances, the sooner all 13 of these companies can expect to begin winning part of NASA's $20 billion trove worth of moon loot.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Maxar Technologies Ltd. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lockheed Martin Corporation Stock Quote
Lockheed Martin Corporation
LMT
$389.79 (-2.55%) $-10.21
Maxar Technologies Stock Quote
Maxar Technologies
MAXR
$18.33 (-1.61%) $0.30
Spirit AeroSystems Holdings, Inc. Stock Quote
Spirit AeroSystems Holdings, Inc.
SPR
$22.12 (-7.18%) $-1.71
Aerojet Rocketdyne Holdings, Inc. Stock Quote
Aerojet Rocketdyne Holdings, Inc.
AJRD
$39.72 (-1.66%) $0.67

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.