Cost of Modernized GPS Ground Control System Soars by $3.4 Billion

May 28, 2013

The cost of a modernized ground control system for Global Positioning System satellites has increased $3.4 billion above its original $1.4 billion price tag, the Pentagon reported. Meanwhile, delays in development of the ground control system pushed back the launch of GPS III satellites with enhanced encryption and new civil navigation signals by more than a year.

The Defense Department added the GPS Next Generation Operational Control System to its annual Selected Acquisition Report released last Thursday, which summarizes the latest estimates of cost, schedule and performance status for key military programs.

The report did not detail the reasons for the cost increase to the GPS Operational Control System, which Raytheon Co. has been developing since February 2010, when it won an initial contract valued at $888.4 million.

Maj. Eric Badger, an Air Force spokesman, explained the $3.4 billion cost for the GPS ground control system as an accounting exercise.

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