Air Force Awards GPS Contracts

by: Matthew Potter
February 14, 2013

Category: Boeing, Business Line, Companies, Contract Additions, Contract Awards, Events, Lockheed Martin, production program, Satellites, Services, U.S. Air Force | RSS 2.0

Even as the nation heads towards sequestration and its dramatic effects on defense spending the Pentagon continues to execute programs and award necessary contracts. Recently the Air Force awarded 2 separate Global Positioning Satellite (GPS) contracts. GPS satellites provide signals that allow receivers to locate themselves. It is used heavily by both the military and in many civil applications.

The Air Force is in the process of upgrading the existing satellite systems to the new Block III status. Lockheed Martin (LMT) received a $62 million contact to buy long lead materials for GPS Block III satellites #5 & 6. These are the last two systems on a contract to procure the Block III satellites. Ultimately up to 32 will be built and placed into orbit. The first one is planned for launch next year.

At the same time Boeing (BA) received a contract that was worth $51 million to support launch of the Block IIF satellite. This has one base year and up to 4 option years. Up to 12 Block IIF satellites will be launched with 3 currently in orbit. This contract will prepare the systems for launch and support them once in orbit.

Maintaining a viable GPS constellation has become critical to the U.S. military as it allows precision guidance of everything from a patrol of Soldiers or Marines to ships and bombs and missiles. The military has worked hard to execute available options on contracts prior to the sequestration but have been hampered by the Continuing Resolution Authority (CRA) that still exists.

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