Shares of Virgin Galactic (NYSE: SPCE) are rallying premarket on Tuesday after NASA said it has selected the company to provide flight and integration services for payloads chosen by the agency’s Flight Opportunities Program.
The deal is an indefinite-delivery/indefinite-quantity one with NASA and runs until July 2023. The multiple-award contracts are firm-fixed-price orders with a combined value totalling $45 million.
NASA said that the government intends to purchase payload space on “commercial flights including payload integration services, to fly technology payloads on platforms that provide high altitude, reduced gravity, or other relevant environments required to test and advance the technologies.”
The Flight Opportunities program is working towards ensuring the flight readiness that advances and enables future space missions.
Shares of Virgin Galactic are up 7.10% premarket at $28.50 after closing Monday’s session at $26.61.