Space Force Awards Lockheed $95M for GPS IIIF

A contract modification settles production impacts from earlier federal budget deferrals on the GPS IIIF satellite line.

Updated on Nov. 2, 2026 in Space

Bold flat-color vector editorial illustration of a single satellite resting on a plinth beside an empty assembly cradle under a halted gantry arm. — The U.S. Space Force awarded Lockheed Martin a $95 million contract modification for GPS IIIF, covering costs from a year-long production pause caused by a fiscal 2025 budget request. AI Illustration. Upload story photo >

The U.S. Space Force has awarded Lockheed Martin a $95 million contract modification for GPS IIIF, bringing the total cumulative value of the production contract to $4.73 billion. The Department of Defense announced the modification on October 30, 2026.

Why it matters

The payment fully funds an equitable adjustment that compensates for production line disruption caused by a fiscal year 2025 budget request that omitted new satellite orders. The resulting year-long production hiatus, known as a "Zero Buy," affects the continuity of the GPS satellite program across the United States.

The GPS IIIF line integrates Regional Military Protection, delivering a 63-fold increase in anti-jam resistance over legacy M-Code transmissions. Starting with vehicle SV13, satellites will integrate Lockheed Martin's LM2100 Combat Bus and an upgraded search-and-rescue payload.

The players

U.S. Space Force

The U.S. Space Force is the military branch responsible for organizing, training, and equipping forces for space operations, including the GPS constellation.

Lockheed Martin

Lockheed Martin is a major American aerospace and defense contractor that builds the GPS IIIF satellites at its Littleton, Colorado facility.

The details

The $95 million modification is designated P00208 and was issued under the prime contract FA8807-18-C-0009, originally awarded in 2018. It covers overhead and parts continuity costs at Lockheed Martin's Littleton, Colorado manufacturing line, and follows a June 2026 award of $514 million for space vehicles 23 and 24.

In fiscal year 2025, the budget request omitted new satellite orders, creating the Zero Buy.
The prime contract was originally awarded in 2018.
In June 2026, Space Systems Command awarded $514 million for SV23 and SV24.
The Department of Defense announced the modification on October 30, 2026.
Lockheed Martin is scheduled to deliver the first GPS IIIF vehicle, SV11, in 2027.

Roadmap

The GPS IIIF program is being built out under a 2018 prime contract that allows for up to 22 space vehicles, with 14 now under firm contract. This settlement shows how federal budget timing decisions can ripple through a multi-year satellite production line.

The GPS constellation provides navigation and timing signals used by civilian and military users, so delays in production affect the long-term availability of these services. Readers relying on GPS-dependent systems should monitor the fiscal year 2027 budget process, which will decide future satellite orders.

The takeaway

Federal budget timing can disrupt specialized production lines for years, so the steady funding of critical satellite programs matters for national navigation capability. Watching the next budget cycle will show whether the GPS IIIF schedule stays on track.

What happens next

Lockheed Martin is scheduled to deliver the first GPS IIIF space vehicle, SV11, in 2027, and fiscal year 2027 budget deliberations will determine procurement for SV25 and SV26.