Aviation Week is reporting that the National Geospatial-Intelligence Agency (NGA) may be forced to renegotiate the EnhanceView contract with GeoEye and DigitalGlobe due to an expected $50 Million cut to the agency's 2012 fiscal year budget with the prospect of more cuts in fiscal 2013. The original EnhancedView contract was $7.3 billion over 10 years and was signed in 2010. The contract was roughly split between the two commercial satellite providers. According to a source cited by Aviation Week:
“You’re going to have to find a way to probably restructure the current service-level agreements with both companies if they’re going to take $50 million out,” says one geospatial-intelligence industry official familiar with EnhancedView. “Any reduction in the budget on the service-level agreement means you’re changing the scope of the contract and you have to renegotiate.”
Last week we reported that NGA was going to procure less imagery in 2013 but that Pentagon investments in new spacecraft would continue.
