Raytheon’s Work On Satellite Control Station Making Progress: Pentagon

Raytheon is making headway with its delayed work on new ground control stations for next-generation GPS satellites.

During the annual Reagan National Defense Forum in southern California, Defense Undersecretary Frank Kendall confirmed that the company's work on ground control stations is progressing. “The company had actually lost some schedule from what we had targeted for them, but not significantly. I think they would get there.” Kendall was quoted as saying by Reuters Monday.

Raytheon had lagged in a remedial schedule agreed with military officials. Kendall added that he would meet Raytheon Chief Executive Tom Kennedy for another high-level quarterly review of the program next month.

In October, Kendall took decision to continue work on Raytheon's Operational Control System (OCX) program after a compulsory live-or-die review triggered when the program breached critical cost thresholds earlier this year.

The program is required for national security and there were no alternatives that offered acceptable capability to meet requirements at less cost, Kendall said.

Raytheon said that it would work closely with the Air Force and the Pentagon to succeed in the program, which saw costs increase sharply due to increased cyber security equipment and other technical issues.

Kendall's latest comments were more optimistic than in July, when he had said that Raytheon's work on the program was "a mixed bag" as he found the company lacking holistic progress on the work.

The Pentagon earlier this year said the estimated cost of the OCX program has rise 16.3 percent, or $586.4 million, to $4.2 billion in 2015, even before a two-year delay that would further inflate costs.