European Commission Awards €1.47 Billion in Contracts for 2nd Generation of Galileo Satellites

BRUSSELS (European Commission PR) — Today the Commission awarded two contracts for 12 Satellites (6 satellites each) for a total of €1.47 billion, to Thales Alenia Space (Italy) and Airbus Defence & Space (Germany) following an open competition.

With this, the Commission is initiating the launch of the 2nd Generation of Galileo, the European satellite positioning system. The aim is to keep Galileo ahead of the technological curve compared to global competition and maintaining it as one of the best performing satellite positioning infrastructures in the world while strengthening it as a key asset for Europe’s strategic autonomy.

The first satellites of this second generation will be placed in orbit by the end of 2024. With their new capabilities relying on high innovative technologies (digitally configurable antennas, inter- satellites links, new atomic clocks technologies, use of full electric propulsion systems), these satellites will improve the accuracy of Galileo as well as the robustness and resilience of its signal, which will be key for the upcoming digital decade as well as more security & military usage.

Background:

With the Galileo satellite navigation system, Europe operates a state-of-the-art system in positioning, timing and navigation that is recognised worldwide as the most performant of this kind. In operation since 2016, Galileo provides signal services to 2 billion users around the globe. 26 satellites are currently in orbit, with 2 additional satellites due for launch in Q3 2021.

In May 2018, the Commission launched the tender procedure to procure a first batch of 12 second-generation satellites through a competitive dialogue, with the objective of signing two contracts (double source) of 6 satellites each. The tender procedure was run by the European Space Agency (ESA) by delegation. After 2 months of detailed technical and financial evaluation of the industrial offers, ESA recommended to the Commission to proceed with Thales Alenia Space and Airbus Defence & Space that represent the best  technical and financial offers. The three industrial bidders were notified yesterday.

The contract will be signed by the end of the month and will take place in line with the steps foreseen in the EU financial regulation