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Lockheed Loses $70 Million Over GPS Satellite Overruns

Lockheed Martin Corp. will lose its entire fee of about $70 million to defray an 18 percent cost overrun on the first Global Positioning System satellites of a new design, according to the Air Force.

The Air Force estimates the first two GPS-III satellites will cost $1.62 billion, spokeswoman Vicki Stein said in an e-mailed statement. Lockheed Martin, the biggest U.S. defense contractor, had estimated the cost for development, testing and building at $1.5 billion as of Feb. 29.