Lockheed Martin gets $95m to continue GPS satellite production

The US Space Force awarded Lockheed Martin a $95 million modification to the GPS III contract, according to a Department of Defense announcement on October 30.

The modification raised the cumulative value of the production contract to $4.73 billion, according to a report by SatNews.

The modification addresses an equitable adjustment request arising from the fiscal year 2025 budget omitting new satellite orders, which led to a production pause that lasted a year.

The funds cover overhead costs and continuity of parts supply on the production line in Littleton, Colorado, without adding new spacecraft to the delivery schedule.

What do these terms mean?

Contract modification: A formal change to the terms or value of an existing contract, agreed between the buyer and the supplier.

Equitable adjustment request: A financial claim filed by a contractor to compensate for the impact of a change outside its control, such as a budget change or an order schedule change.

Fiscal year: The accounting period a government or company uses to prepare its budget, which may differ from the calendar year.

Delivery schedule: The list of vehicles or products due to be delivered under the contract and their dates.