Pentagon Increases Budget for GPS Control System of Space Force by $196 Million

Pentagon Increases Budget for GPS Control System of Space Force by $196 Million

SpaceForce's Troubled GPS Operating Control System Project, RTX's Struggles

The Space Force has been battling issues with its long-delayed GPS Operating Control Systems (OCX) project for nearly a decade now, shelling out an eye-watering $8 billion and counting.

The latest twist? A $196 million contract modification to RTX, the contractor handling the OCX project. This isn't a new deal or a proposal but simply an undefinitized change order. And with RTX's performance on the OCX program leaving much to be desired, one might question if they're still the right choice for the job.

Initially envisioned as a six-year, 2010 contract with a 2016 delivery, only Block 0 of OCX is currently in use. Blocks 1 and 2 remain unfinished, despite the Pentagon having spent almost $4.49 billion on them.

The GAO estimates that the Department of Defense has spent over $8 billion on all the blocks of OCX, including $433 million on Block 3F intended for future GPS IIIF satellites. Unsurprisingly, the OCX program has drawn criticism from watchdogs, lawmakers, and even Frank Calvelli, the Space Force's top acquisition official, who has called it "troubled," an "albatross," and a "problem child."

Calvelli aims to get the program across the finish line and into operations, but with the upcoming transition of the current administration in January 2023, that seems increasingly unlikely.

Originally slated for deployment in early 2023, Calvelli later pushed the timeline to summer 2024. In February 2024, the Office of the Director of Operational Test and Evaluation estimated that the Space Force wouldn't field OCX until March 2025 and wouldn't operationally accept it until July. By May 2024, Calvelli told lawmakers he was hoping to transition the program to operations by spring 2025, but by September, the Government Accountability Office expected final acceptance of the software until December 2025, with no margin for schedule slip.

The delays and struggles with OCX are primarily due to an ambitious attempt to create an entirely new, large software system all in one go, a practice now usually avoided in favor of rapid, iterative updates. Developmental testing has been slow, and even after RTX delivers the program to the Space Force, there will be months of operational testing.

RTX, formerly Raytheon, has faced challenges with Space Force programs in the past. In March, RTX pulled out of a $250 million agreement to build seven low-Earth-orbit missile tracking satellites for the Space Development Agency. In June, Space Systems Command dropped RTX from a planned missile warning/missile tracking satellite constellation in medium-Earth orbit. RTX officials have since stated they no longer wish to be prime contractors for space systems.

Despite these trouble spots, Calvelli has declined to confirm if RTX is on the Contractor Responsibility Watch List, a list that identifies companies failing to meet cost or schedule goals on space programs. Lt. Gen. Philip A. Garrant, SSC boss, has hinted at a company on the watch list, without disclosing its name. Given that he ruled out Lockheed Martin, RTX seems a plausible candidate.

RTX declined to comment on the matter. According to the 2018 law establishing the watch list, the Space Force cannot award a contract to, execute an engineering change proposal with, or exercise an option with contractors on the list. The recent contract change does not meet that description.

Insights:- The OCX program, first launched in 2010, is still running behind schedule and over budget, with billions spent and no operational acceptance in sight.- RTX, formerly Raytheon, has faced struggles with Space Force programs, including the OCX project and the loss of two major contracts in 2021.- Frank Calvelli, the Space Force's top acquisition official, has expressed a desire to get the OCX program across the finish line and into operations, but it remains unclear if he will achieve this goal.

RTX Space:While RTX has faced challenges with Space Force programs, it continues to secure significant contracts with other defense agencies. Recent contracts with the U.S. Navy for radars (AN/SPY-6(V) family) and missiles (AIM-9X Block II) are valued at $646–647 million and $1.1 billion, respectively, and demonstrate strong investor and industry confidence in RTX. As of mid-2025, there is no specific evidence that RTX has been named on an official Contractor Responsibility Watch List, contrary to speculation circulating in press reports.

1. The Space Force's OCX project, currently managed by RTX, has been marred by delays and escalating costs for nearly a decade, with an estimated expenditure of over $8 billion.
2. The Defense Department's GAO has indicated that RTX's performance on the OCX program has been less than satisfactory, raising questions about their continued suitability for the job.
3. Despite the troubled OCX project, RTX has continued to secure lucrative contracts with other defense agencies, such as the US Navy for radars and missiles, worth $646–647 million and $1.1 billion respectively.
4. Undetermined is whether RTX appears on the Contractor Responsibility Watch List, a Designation meant for entities failing to meet cost or schedule goals on space programs, despite speculation in press reports suggesting otherwise.
5. The OCX program, initially intended for deployment by early 2023, currently seems unlikely to enter operations before December 2025, with no margin for schedule slip, according to the Government Accountability Office.

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