The U.S. Air Force has chosen three aerospace companies in which to invest $2 billion, including one that builds rockets in Chandler.
The public-private Launch Service Agreements awarded nearly $792 million to Northrop Grumman Innovation Systems, which acquired defense and space contractor Orbital ATK in June.
Blue Origin and United Launch Alliance received contracts of $500 million and $967 million, respectively.
The three companies will develop competing domestic launch vehicles to carry defense satellites, with commercial contracts likely to follow.
Northrop Grumman is building its intermediate-to heavy-lift rocket, dubbed OmegA, at Orbital's Chandler facilities.
Its contract will run through OmegA's scheduled certification flights in 2021 and 2024.
