The EC Reduces Galileo Satellite Order

Date: 9/12/2009

Source: Space News and Inside GNSS

The European Commission has reduced the number of satellites it expects to order this year for Galileo. The maximum number of satellites that could be ordered this year has now been reduced to 22. According to the European government and industry officials reducing the number of satellites will make it possible to adjust the satellites to take account of new technology or developments in other satellite navigation systems; it also enables the Commission to save money at a time when the Galileo project threatens to run over budget.

Originally the Commission had asked the two final Galileo bidders, consortia led by Astrium Satellites and OHB System, to bid for 28 to 30 satellites, but recently has told them the maximum order will be for 22. The Commission has asked both bidders to quote prices for eight and 16 satellites as well, in case it decides to divide the work between the two consortia.

European Parliament members have backed Galileo on the assumption that its budget of 3.4 billion Euros through 2013 would purchase a fully operational system that year. However, neither of those objectives looks likely to be met. The Galileo system is not likely to become fully operational until 2016, according to the government and industry officials.

The Commission concluded that overruns were not due to overruns in the In-Orbit Validation (IOV) phase but instead due to contract change notices issued by ESA (Galileo’s former financial backer) as Galileo added measures related to system security.

The Commission had budgeted 840 million Euros (£763 million) for the contract to build the Galileo satellites when 28 to 30 satellites were planned. Officials said the bids they have received so far appear in line with that estimate. Best-and-final offers are due in mid-November, with a decision scheduled for late December.

Two of the four planned Galileo IOV satellites are scheduled for a late 2010 launch followed by two more in 2011.

ITS Radar International will continue to monitor Galileo

Keywords: Galileo