GPS 3 Storage Costs Could Eat Into Block-buy Savings

摘要

The U.S. Air Force has credited its block-buy strategy for saving money on satellite programs, but on its next generation of GPS navigation satellites any such savings could be offset in part by storage costs, the service said in a report to Congress. The block-buy approach entails buying satellites two or more at a time, which enables the contractor to order components in bulk and find production efficiencies, both of which save money. The service recently claimed $1 billion in savings by buying a pair of missile warning satellites together rather than individually, for example. But on its next-generation GPS 3 positioning, navigation and timing satellites, the service faces countervailing forces that could limit theses benefits, according to the report, titled "Global Positioning System 3 Space Segment Suitability for Multi-Year Procurement." The report was given to congressional defense committees in late April.