The Global Positioning System III, or GPS III, is moving into the critical design review phase, Lockheed Martin Corp. [LMT] announced.

That move into the next phase began on schedule, the company stated.

CDR will lead toward production of the next-generation satellite system.

Over the next year, Lockheed Martin Space Systems, Newtown, Pa., along with industry partners ITT, Clifton, N.J., and General Dynamics Corp. [GD] of Gilbert, Ariz. will conduct 70 individual CDRs for key GPS III spacecraft subsystems, assemblies and elements.

The phase will culminate in the fall of 2010 with a final Space Vehicle CDR that will validate the detailed GPS III design to ensure it meets warfighter and civil requirements.

The Global Positioning Systems Wing, Space and Missile Systems Center, Los Angeles Air Force Base, Calif. awarded the Lockheed Martin-led team a Development and Production contract valued up to $3.5 billion in May 2008. The contract to produce the first two GPS IIIA satellites, with first launch projected for 2014, also includes options for up to 10 additional spacecraft.