Air Force awards Lockheed $1.3B for first two GPS IIIF satellites

The Air Force awarded Lockheed Martin a $1.3 billion contract today for the first two GPS III Follow-on satellites -- part of a $7.2 billion deal to build 22 satellites.

The service announced Sept. 14 it had selected incumbent Lockheed Martin to produce the upgraded GPS III satellites. Today's award includes non-recurring engineering, space vehicle test bed and simulators along with production of the first two satellites.

GPS IIIF satellites will build off the program's baseline capability, but will introduce a higher-power military-code signal, called regional military protection, that will significantly improve its anti-jam capability. The satellites will also host a search-and-rescue GPS payload to support international agreements, an energetic charged particles sensor to improve threat detection and a unified S-band interface that will provide dual-frequency support for the follow-on satellites.

The service says the acquisition was "competitive," although it received only one proposal. Would-be bidders Northrop Grumman and Boeing both opted not to participate.

Air Force acquisition executive Will Roper told reporters last week he expects the service to "get economies of scale" by contracting with Lockheed. He and military deputy Lt. Gen. Arnold Bunch both said the program still benefited from a competitive acquisition strategy, despite not receiving multiple bids.