Boeing wins $2 billion satellite contract from Space Force
In what appears to be the first major space contract Boeing has won in awhile, the Space Force yesterday awarded it a $2 billion contract to build two new military communications satellites, part of the War Department’s MUOS constellation.
The Boeing Co., El Segundo, California, has been awarded a maximum $2,002,862,607 fixed-price-incentive-firm-target contract for the Mobile User Objective System (MUOS) service life extension Phase II effort. This contract provides for the design, development, build, launch support, and on-orbit test support of two MUOS satellites. Work will be performed in El Segundo, California, and is expected to be completed by Sept. 30, 2035. [emphasis mine]
Boeing won the contract competition over Lockheed Martin, which had built the previous MUOS satellites.
I highlight the fixed-price nature of the contract. Boeing’s space-related division in the past two decades has had trouble dealing with such contracts, its corporate culture having become spoiled with cost-plus contracts, which are essentially blank checks. Its fixed-price Starliner contract is the best example, but the company’s repeated inability to stay under budget or get things done got so bad that by 2020 NASA announced it would no longer entertain any contract bids from the company, a policy that it still follows.
For Boeing, making this fixed-price contract work is literally a make-or-break situation. It needs to beginning producing such contracts on-budget and on-time, or else it will die.





