European Commission Reduces Galileo Satellite Order

October 19, 2009

The European Commission has reduced the number of satellites it expects to order this year for the Galileo program to 22. As reported by Space News, the reduced order is being done to preserve the ability to modify the spacecraft design early in the system’s life, according to European government and industry officials. The decision also allows the commission to save money and stay within the project’s budget.

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 the order is now for a maximum of 22 spacecraft. 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, Space News reports.

Best-and-final offers are due in mid-November, with a decision scheduled for late December. The commission had budgeted 840 million euros ($1.24 billion) for the contract to build the Galileo satellites when it wanted 28 to 30 satellites. Officials said the bids they have received so far appear in line with that estimate.

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