General Dynamics Mission Systems has won a $99.3 million cost-plus-award-fee task order to design, upgrade, integrate and deploy modifications to the Mobile User Objective System ground segment in support of two service-life-extension satellites. The work runs through September 2028 in Scottsdale, Arizona.
What's happening
- GDMS received a sole-source award to modify the MUOS ground segment for two service-life-extension satellites launching under Boeing's separate $2 billion production contract.
- Fiscal 2026 research and development funds of $23.7 million were obligated at the time of award, with total contract value at $99.3 million.
- The upgraded ground segment will support the Space Force's effort to extend MUOS waveform availability through fiscal 2035 and the supporting ground infrastructure through fiscal 2040.
Why it matters
- GDMS holds the dominant position in MUOS ground infrastructure support, with $106 million in sustainment and modernization task orders awarded in May and ongoing sustainment contracts from the Navy.
- The ground segment upgrade is critical path for the Boeing satellites, which cannot be operationally deployed without corresponding ground modifications.
- Extending MUOS availability to fiscal 2035 addresses a gap in military communications capacity and reduces dependency on a single generation of satellites now in orbit since 2012 to 2016.
Going deeper
- Boeing's two new satellites represent Phase II of the MUOS service life extension program, awarded in June 2026 with development and production through September 2035.
- GDMS has accumulated at least $294.9 million in total potential MUOS ground work across multiple task orders awarded since April 2026.
Financial impact
- General Dynamics will recognize revenue on a cost-plus-award-fee basis over the performance period from award through September 2028, with $23.7 million in obligated funding hitting in fiscal 2026.
- The contract adds to GDMS's backlog of MUOS ground sustainment and modernization work, including the $106 million May task order and historic Navy sustainment contract potential of $731.9 million through November 2029.
The fine print
- Award was made on a sole-source basis, meaning no competitive procurement took place.
- Total contract value is $99.3 million with ceiling and obligated amounts not separately disclosed in the award announcement.
Source: GovCon Wire · Sep 8, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.