Lockheed-led consortium to develop new generation GPS III satellites

16 May 2008

Lockheed Martin Corp, the world's largest defence contractor, beat Boeing Co. for a $1.46 billion US Air Force contract to build a new network of navigation satellites intended for military and civilian use.

The US Defence Department contract entails delivery of two Global Positioning System III satellites, with options for 10 more. With all options exercised, the total value of the contract could reach $3.57 billion, US Air Force sources said.

GPS satellites are dual function satellites, which allow both civilian and military use. The current constellation of 33 GPS satellites allows so-called smart bombs, as well as missiles of different kinds, to be guided to their targets. They also help civilian pilots, drivers and hikers pinpoint their locations.

Unlike earlier generations, the new GPS satellites will offer similar accuracy to both military and civilian users. With the 12 new GPS III satellites, locations will now be accurate to within 9 inches on high-quality GPS receivers, instead of about 9 feet on average devices until now.

Apart from improved accuracy and anti-jamming, these GPS III satellites will also feature a signal that will be compatible with the European Union's Galileo constellation.

The US Air Force said that it could build a further 20 satellites and retains the option of awarding the  contract for these to Lockheed or to call for new bids.