PARIS โ€” OHB AG of Germany on Sept. 18 contracted with its German rival, Astrium Satellites, to build the only phased-array radar reconnaissance satellite planned as part of the three-satellite SARah second-generation German military satellite system, Astrium announced.

The contract, valued at 344 million euros ($464 million), also covers the ground segment to be developed to handle the satelliteโ€™s data. OHB is building the other two SARah satellites and is managing the entire project under an 816 million-euro contract with Germanyโ€™s defense procurement agency, BAAINBw, signed in July. The contract also includes the launch of the satellite aboard a Space Exploration Technologies Corp. (SpaceX) Falcon 9 rocket as part of a longstanding launch reservation Astrium had with SpaceX.

The SARah system is scheduled to be operational by 2019 and will succeed the current five-satellite SAR-Lupe constellation, also built by Bremen-based OHB.

โ€œThis is the first time that Astrium is supplying an Earth observation satellite to the German Armed Forces โ€” and โ€ฆ it will be equipped with the latest technology, namely the ultra-high performance active phased-array,โ€ Astrium Services Chief Executive Evert Dudok said in a statement. Dudok is also head of Astrium Germany. 

โ€œNot only will this significantly enhance the German Forcesโ€™ capabilities,โ€ he said, โ€œit also helps better position Germany industrially for the future.โ€

Astrium Services officials hope to use their work on the SARah satellite to offset what would otherwise be substantial nonrecurring engineering charges in the construction of a second-generation TerraSAR-X commercial radar Earth observation satellite.

Astrium officials have said they will wait until early next year, after the commercial introduction of a global digital elevation model produced by TerraSAR-X and its twin, TanDEM-X, before committing to the production of a new TerraSAR-X.

The companyโ€™s decision on a follow-on TerraSAR-X has been complicated by the fact that the German Aerospace Center, DLR, has said its cost-sharing agreement with Astrium for TerraSAR-X and TanDEM-X will not be repeated.

Peter B. de Selding was the Paris Bureau Chief for SpaceNews.