Raytheon’s $7 Billion GPS Stations Are Running 73% Over Estimates

Raytheon Technologies Corp.’s system of 17 ground stations to control the Pentagon’s constellation of GPS satellites has drawn the ire of the House panel that funds annual defense spending because it’s running seven years late and is now $7 billion, which is 73% costlier than initial projections.

(Bloomberg) — Raytheon Technologies Corp.’s system of 17 ground stations to control the Pentagon’s constellation of GPS satellites has drawn the ire of the House panel that funds annual defense spending because it’s running seven years late and is now $7 billion, which is 73% costlier than initial projections.

“This is unacceptable and demands senior leader attention to ensure the program has the appropriate resources to complete development and deliver the capability as soon as possible,” the House Defense Appropriations subcommittee said Wednesday in its report on the fiscal 2024 defense budget.

The Next Generation Operational Control System, known as OCX, is intended to provide improvements, including access to more secure, jam-resistant software for the military’s use of the GPS navigation system, which is also depended on by civilians worldwide.

The delay’s costs are borne by taxpayers under the so-called cost-plus development contract that Raytheon received in 2010.

The years of delay and the steadily mounting cost have been inherited by the US Space Force from the Air Force.

Earlier: Raytheon GPS System Already Six Years Late Is Delayed Even More

“The committee supports efforts by Space Force acquisition leaders to improve management rigor and accountability for delivering programs on schedule and within budget, and to pay particular attention to corrective actions on poorly performing programs,” such as OCX, the House panel said.

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