The U.S. Air Force plans to revise its contract with Raytheon Co (RTN.N) for a new ground control network for GPS satellites after officials decided last week to delay completion of the program until July 2022, a senior official said Thursday.

Major General Roger Teague, director of space programs for the Air Force’s acquisition chief, told Reuters in an interview it was not clear how much the delay would add to the program, which was previously expected to cost $3.6 billion.

He said the GPS program office would also review incentive fees associated with the contract to ensure they properly rewarded good performance and penalized the company if its performance did not improve.

Raytheon has said it was committed to meeting the Air Force’s expectations for the program, but declined to give any further details.

Teague’s comments followed a “deep dive” review last week by the Pentagon’s chief arms buyer, Frank Kendall, of the troubled program, which was slammed as “a disaster” on Tuesday by General John Hyten, commander of Air Force Space Command.

Raytheon won a contract worth up to $1.5 billion in 2010 to develop the GPS Operational Control System, or OCX, to operate the next-generation GPS 3 satellites being built by Lockheed Martin Corp (LMT.N).

The project’s cost had already more than doubled due to increased cyber security requirements and poor contractor performance, and now looks likely to rise further.

Teague confirmed that Air Force officials initially estimated a delay of 47 additional months, first reported by Reuters on Wednesday..

He said Kendall opted for a shorter delay, coupled with aggressive oversight at all levels of the program, to ensure that the sorely-needed satellite control capability was delivered to the military.

Teague said a new cost estimate would be done early next year, with Kendall and Raytheon Chief Executive Tom Kennedy to set meet for another quarterly “deep dive” review in early spring.

Teague said Lieutenant General Samuel Greaves, commander of U.S. Space and Missiles Systems Center, would now meet weekly with a Raytheon vice president about the program, while Lieutenant Arnold Bunch, the top Air Force officer in charge of acquisition, would participate on a biweekly basis.

Kendall decided not to restructure the contract as a fixed-price program because it would have reduced the government’s oversight, Teague said. “It’s a team sport,” he said. “We need to have government participation and oversight and insight.”

Teague said the Air Force was focused on getting the Raytheon program completed, but would keep its options open in case the new approach failed to get the program back on track.

(Editing by Miral Fahmy)

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