The U.S. Space Force has awarded Raytheon a $379.7 million contract extension to continue work on the overdue Next Generation Operational Control System (OCX), a critical upgrade to the Global Positioning System (GPS) ground control infrastructure that is now more than eight years behind schedule.
The contract extension, disclosed on May 21, adds another year of development following a $196.7 million award in November 2023. The Department of Defense (DoD) said the cumulative value of the OCX contract has reached approximately $4.6 billion, up from its original $1.5 billion value when Raytheon was selected as prime contractor in 2010.
Designed to modernize command and control for both current and future GPS satellites, OCX promises improved cybersecurity, support for encrypted military signals, and broader compatibility with international navigation systems. However, the program has been marred by repeated technical delays and cost overruns, emblematic of broader challenges in Pentagon software procurement.
“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,” said Maj. Gen. Stephen Purdy, the Space Force's acting assistant secretary for space acquisition, in testimony to the House Armed Services Committee on May 14.
Despite setbacks, OCX has shown recent signs of progress. The system has established 130 operational contacts with legacy GPS satellites and transmitted its first OCX-generated signal, which was successfully tracked by a monitoring station. Delivery to the Space Force's Space Operations Command is expected this fall, with a phased transition scheduled to begin in early fiscal 2026 and full operational capability targeted for spring 2026.
Raytheon, headquartered in Arlington, Virginia, develops OCX through its space systems division based in Aurora, Colorado.
The Space Force's efforts to finalize OCX come as the DoD embarks on sweeping procurement reforms. In a March 2025 directive, Defense Secretary Pete Hegseth ordered the military to prioritize agile, software-first approaches and open architectures over traditional hardware-driven models.
“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, comprising at least 31 operational satellites in medium Earth orbit, is a cornerstone of both global civilian infrastructure and U.S. military operations, providing critical positioning, navigation and timing services around the world.