The MoD maintains that it has not reached a final decision, emphasising that both UK-based bidders are undergoing full evaluation and must offer satellites assembled, integrated, and tested in Britain.
A spokesman added that the winning supplier would be required to establish a UK-based “design authority” with the capacity to make modifications independently.
The department declined to address whether American-sourced components would be subject to ITAR restrictions, though it is understood the contract will include safeguards intended to protect Britain’s operational independence.
Lockheed Martin, which said it could not discuss specifics while the procurement remained live, stressed that its British division would manage the work.
A company spokesman said: “Lockheed Martin UK, a British company, will establish facilities to develop an ecosystem alongside our regional partners in the North East of England to provide the UK with a sovereign space capability.”
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