WASHINGTON — The U.S. Space Force awarded Raytheon a $379.7 million contract extension to continue development of the long-delayed Next Generation Operational Control System (OCX), a critical software upgrade for the Global Positioning System (GPS) infrastructure now more than eight years behind schedule.
The extension, announced May 21, follows a $196.7 million award in November and adds another year of work as the Space Force targets operational readiness by 2026. According to the Department of Defense, the total value of the OCX contract, including all options, has reached approximately $4.6 billion.
The U.S. Air Force selected Raytheon as the prime contractor for OCX in 2010, with the contract then valued at $1.5 billion. Raytheon is headquartered in Arlington, Virginia, but its space business — including the OCX program — is based in Aurora, Colorado.
OCX is designed to modernize command and control of the U.S. GPS satellite constellation, managing both current and next-generation satellites. It promises enhanced cybersecurity, broader compatibility with civil and military navigation signals, and support for new encrypted features aimed at improving resilience in contested environments.
But OCX has become emblematic of the Pentagon’s struggles with complex software development. Originally scheduled for delivery in 2018, the program has suffered repeated setbacks due to the sheer scope and technical complexity of its software — a cautionary tale that has prompted broader reforms in defense acquisition policy.
“The OCX program remains challenging, highlighting the difficulties of developing complex C2 (command and control) systems concurrently with large-scale software — a practice we aim to avoid in the future,” Maj. Gen. Stephen Purdy, the Space Force’s acting assistant secretary for space acquisition, said May 14 in a statement to the House Armed Services Committee’s strategic forces panel.
Despite its troubled history, Purdy said OCX is progressing. He noted the system has made 130 successful operational contacts with legacy GPS satellites and has broadcast its first OCX-generated signal tracked by a monitoring station.
Delivery of the completed system to the Space Force’s Space Operations Command is expected this fall. If approved, the Space Force will begin a formal trial period and phased transition from the existing ground control architecture to OCX in early fiscal 2026. The handover — referred to as the “constellation transfer event” — will occur over an eight-week window to minimize service disruptions. Full operational acceptance is expected by spring 2026.
DoD introduces software reforms
The Space Force is working to get OCX over the finish line as the Pentagon seeks to overhaul how it develops and procures software, aiming to avoid future delays like those that plagued OCX. In a March 2025 memo, Defense Secretary Pete Hegseth directed all military branches to abandon traditional, hardware-heavy procurement models in favor of agile, software-first approaches that emphasize open architectures and commercial innovation.
“We shifted the space portfolio away from massive, monolithic, winner-take-all ground software programs” like OCX, Purdy said. “Instead, we’ve broken out our ground software acquisition into multiple components, using open architecture frameworks and tapping into Silicon Valley style software production contractors.”
The GPS constellation, operated by the Space Force, provides positioning, navigation and timing services essential to both military operations and civilian infrastructure worldwide. The system consists of at least 31 operational satellites orbiting approximately 12,500 miles above Earth.