We describe a flexible high-sensitivity laser communication transceiver design that can significantly benefit performance and cost of NASA's satellite-based Laser Communications Relay Demonstration. Optical communications using differential phase shift keying, widely deployed for use in long-haul fiber-optic networks, is well known for its superior sensitivity and link performance over on-off keying, while maintaining a relatively straightforward design. However, unlike fiber-optic links, free-space applications often require operation over a wide dynamic range of power due to variations in link distance and channel conditions, which can include rapid kHz-class fading when operating through the turbulent atmosphere. Here we discuss the implementation of a robust, near-quantum-limited multi-rate DPSK transceiver, co-located transmitter and receiver subsystems that can operate efficiently over the highly-variable freespace channel. Key performance features will be presented on the master oscillator power amplifier (MOPA) based TX, including a wavelength-stabilized master laser, high-extinction-ratio burst-mode modulator, and 0.5 W single polarization power amplifier, as well as low-noise optically preamplified DSPK receiver and built-in test capabilities.