Raytheon Secures Deal to Enhance GPS Software Backbone

Raytheon, a subsidiary of RTX, has received a US$379.8 million contract extension from the US Space Force to advance the Next Generation Operational Control System (OCX), the software backbone of the Global Positioning System (GPS). Announced on May 21, the extension funds Raytheon’s efforts through Mar. 31, 2026, with an option to continue support until March 31, 2027.

This new award follows a US$196.7 million extension granted in November 2023, bringing the OCX program’s total value to approximately US$4.6 billion since its inception in 2010 with an initial value of US$1.5 billion. Raytheon conducts much of its work at its Aurora, Colorado, campus, with additional activities at Schriever and Vandenberg Space Force Bases in California.

The OCX program is designed to modernize the ground control system for the US GPS constellation, supporting both current and future satellites. It integrates enhanced cybersecurity, broader signal compatibility for civilian and military users, and encrypted features for contested environments.

Despite its strategic importance, OCX has faced significant delays. Originally scheduled for completion in 2018, the program has been hindered by technical and software challenges. The Department of Defense has acknowledged these setbacks and highlighted OCX as an example of the need for improved software acquisition practices.

“The OCX program remains challenging, illustrating the complexities of developing large-scale command and control systems alongside intricate software,” said Maj. Gen. Stephen Purdy, Acting Assistant Secretary, Air Force for Space Acquisition.

Progress has been made, with OCX achieving 130 successful operational contacts with existing GPS satellites and transmitting its first OCX-generated signal, a key technical milestone. Delivery to Space Operations Command is expected in fall 2025. Pending evaluation, the system will undergo a trial phase in early fiscal year 2026, with full operational acceptance anticipated by spring 2026. Transitioning from the legacy system to OCX will occur over an eight-week “constellation transfer event” to minimize service disruptions.

The latest contract modification includes pre-operational support, interim contractor services, and finalizes a previously undefinitized change order. The contract’s base period has been extended from 12 to 16 months, with a 12-month option valued at US$162.6 million. Work will continue across multiple locations, with incremental funding and no initial funds obligated at the time of the announcement.

Concurrently, the Department of Defense is revamping its software development approach. In March 2025, Defense Secretary Pete Hegseth directed a shift from hardware-centric procurement to modular, software-first methodologies.

“We have moved away from monolithic, winner-takes-all software programs, instead adopting open architecture frameworks and Silicon Valley-style software production,” said Purdy.