MDA Space Ltd. (TSX: MDA) (NYSE: MDA) received a contract valued at approximately $32 million from Canada's Defence Investment Agency to deliver three Ground-Based Optical observatories for the Department of National Defence, the company announced March 18.

The contract is part of the Surveillance of Space 2 space domain awareness program. MDA Space will establish the three remotely operated observatories in Alberta, Manitoba and New Brunswick by 2028. The company will also operate and provide in-service support for the ground stations.

The observatories will supplement Canada's existing Sapphire satellite, which enables the Canadian Armed Forces to detect, track, characterize and monitor objects in deep space. The new ground-based systems will provide persistent space surveillance capabilities as part of Canada's broader space-surveillance architecture.

"As space becomes more contested, congested and competitive, persistent surveillance and space domain awareness provides the Canadian Armed Forces and trusted allies with a better understanding of what is happening in a complex environment they can't otherwise see," said Mike Greenley, chief executive officer of MDA Space.

The Honourable Stephen Fuhr, Secretary of State for Defence Procurement, said the contract will deliver capabilities the Canadian Armed Forces need while growing Canada's space sector and creating jobs.

The Department of National Defence is modernizing Canada's continental defence capabilities to address threats to critical space infrastructure. The information was disclosed in a company press release.