The U.S. Space Force’s fiscal 2027 budget request outlines a clear long term strategy for sustaining and expanding its next generation GPS constellation. According to newly released budget documents, the service intends to procure and award two GPS III Follow On satellites annually, maintaining this pace through at least 2031.
This approach builds on an already active pipeline. Twelve satellites under the GPS III Follow On program have been contracted so far, with space vehicles 21 and 22 awarded in 2025. The next pair, satellites 23 and 24, are scheduled for contract award in 2026, while funding for satellites 25 and 26 is allocated in the 2027 budget cycle.
Financially, the Space Force is committing significant resources to maintain momentum. Around $681 million has been earmarked to support procurement and keep production and launch schedules on track for satellites 13 through 24. Notably, procurement costs are trending upward, with unit prices expected to rise from roughly $340 million per satellite in 2027 to over $355 million by 2031.
GPS III constellation expansion continues after completion of first 10 satellites
The latest developments follow the completion of the initial GPS III Block 1 rollout, which saw ten satellites launched between 2018 and April 2026. These spacecraft form the backbone of the current modernization phase of the Global Positioning System, operating in medium Earth orbit and delivering enhanced positioning, navigation, and timing capabilities.
The Follow On program represents the next layer of that evolution. The first satellites in this batch, space vehicles 11 and 12, are already in production and are expected to launch in fiscal years 2027 and 2028. Manufacturing progress is also visible, with multiple satellites having completed key integration milestones at production facilities in Colorado.
Ground segment shift from OCX to AEP reshapes GPS modernization strategy
Alongside space segment investments, the Space Force is redirecting its ground system strategy. The long troubled Next Generation Operational Control System program has been canceled after years of delays and cost overruns. Instead, the Pentagon is doubling down on upgrading the existing control architecture through the Architecture Evolution Plan.
For fiscal 2027, approximately $222 million is allocated for research, development, testing, and evaluation tied to this modernization effort. The AEP upgrade program is expected to run from mid 2026 through early 2030, gradually integrating capabilities that were originally planned under the canceled system.
Why this matters for positioning resilience and multi domain operations
This budget direction signals a shift toward predictability and scalability in GPS infrastructure. Rather than pursuing large step change programs with high risk, the Space Force is opting for incremental upgrades across both space and ground segments.
From an operational standpoint, this matters. A steady launch cadence ensures constellation health, reduces vulnerability to gaps, and improves resilience against interference or system degradation. In a world where GNSS is increasingly contested, maintaining redundancy and refresh cycles becomes as important as raw accuracy.
The decision to abandon the delayed ground system in favor of upgrading an existing, proven architecture also reflects a pragmatic approach. It prioritizes deployable capability over theoretical performance, which aligns with real world requirements across defense, aviation, and commercial navigation sectors.
About Lockheed Martin
Lockheed Martin is one of the world’s largest aerospace and defense contractors, headquartered in Bethesda, Maryland. The company employs approximately 120,000 people globally and reported revenues of over $67 billion in 2025. Lockheed Martin is the prime contractor for the GPS III and GPS III Follow On satellite programs, with manufacturing centered in its Denver facilities. The company has delivered critical space systems for decades, including missile warning satellites, deep space probes, and national security payloads.
