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EL SEGUNDO, Calif. — Millennium Space Systems, a subsidiary of Boeing, is significantly increasing its satellite manufacturing capabilities to fulfill a growing backlog of defense contracts, marking a pivotal expansion for the company.
According to Tony Gingiss, Chief Executive Officer since December, this expansion is crucial as the company must demonstrate its capacity to deliver missions at an accelerated pace. Millennium Space Systems plans to boost its production rate from one to two satellites per month to six to twelve, a substantial increase for the satellite industry, traditionally characterized by slow, deliberate manufacturing processes.
The California-based satellite manufacturer, which employs around 1,000 individuals, is expanding its operational footprint from 22,000 square feet to nearly 42,000 square feet of production space. This growth initiative signifies Millennium Space Systems’ transition from a specialized, low-volume producer to a dependable, high-volume satellite manufacturing facility.
Growing Defense Portfolio
Military programs are the sole driver of Millennium Space Systems’ growth, as the company presently focuses exclusively on government contracts. A minor portion of their endeavors includes civil space projects, notably the recent delivery of two spacecraft for an upcoming NASA scientific mission investigating space weather phenomena.
Foo Fighter Missile-Tracking Satellite Program
A $414 million contract to develop and operate eight missile-tracking satellites, designated “Foo Fighter,” is the primary impetus for this expansion. Foo Fighter, an acronym for Fire-control On Orbit-support to the Warfighter, will utilize spacecraft equipped with advanced infrared sensors. A dedicated production facility for this program is under construction at Boeing’s El Segundo campus; however, Gingiss emphasized that Millennium’s operations remain distinct from Boeing’s wider manufacturing activities.
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U.S. Space Force Contract for MEO Satellites
Furthermore, Millennium Space Systems is fulfilling a near billion-dollar order for 12 missile-tracking satellites for the U.S. Space Force. These satellites are slated to operate in Medium Earth Orbit (MEO). Gingiss mentioned additional, classified satellite contracts that he could not elaborate upon.
Industry Transition
Gingiss, an experienced aerospace executive with a background at Terran Orbital, Virgin Orbit, and Airbus OneWeb Satellites, assumed leadership at Millennium Space Systems during what he characterized as a critical juncture for the satellite manufacturing industry.
“The landscape has transformed,” Gingiss stated. “Excelling in just one or two areas – speed, cost-effectiveness, or quality – is no longer sufficient. The current expectation is to excel in all three simultaneously.”
This represents a notable departure from the 1990s NASA approach of “faster, better, cheaper,” where, as Gingiss pointed out, choosing only two was acceptable. Today’s market, influenced by increasing geopolitical instability and heightened demand for satellite capabilities, mandates that manufacturers achieve excellence across all aspects concurrently.
Supply Chain Challenges
Since becoming CEO, Gingiss has spearheaded a restructuring of supply chain procedures. Although the most acute shortages from the pandemic era have lessened, the space industry is encountering a new wave of limitations, particularly in the availability of sophisticated electronics and space-qualified materials.
These procurement challenges are occurring amidst rising global trade tensions, exacerbated by recent tariffs imposed on internationally manufactured goods.
Despite potential obstacles, Gingiss expressed optimism about the space industry‘s increasing ability to utilize technologies and components derived from the commercial electronics, automotive, and aviation sectors.
Leveraging Commercial Technologies
“We have transitioned to a more innovative space industry that leverages technologies from diverse sectors,” Gingiss explained. This cross-industry integration has broadened component availability and often reduced costs. However, it also introduces competition for satellite manufacturers with companies outside the aerospace sector for limited supplies of specific components.
“The advantage of utilizing components common across various industries is their increased availability and often more competitive pricing,” he clarified. “However, a potential disadvantage arises if high demand from other industries with potentially higher profit margins leads to competition for limited supply.”
Component Standardization
Gingiss further elaborated on Millennium’s approach to component management across its satellite programs: “We prioritize the reuse of common components, including flight computers, power subsystem elements, mission data processors, and similar items. This standardization across programs minimizes the reliance on unique parts and reduces the need to develop multiple versions of the same component.”