Lockheed Martin [LMT] has moved toward final assembly, integration and testing of prototype GPS III non-flight satellite to work out any problems that may arise as it prepares the first vehicle planned for orbit, the company said.

The testbed was delivered to Lockheed Martin’s facility in Denver to undergo the process designed to maximize efficiencies and reduce costs of the Air Force’s satellite program. The GPS III program is intended to service civilian commercial and military needs and will replace the aging block 2 versions.

“The on schedule delivery of the GPS III pathfinder is a key indicator that this program is on firm footing and poised to deliver on its commitments,” Lt. Col. Don Frew, the Air Force’s program manager for GPS-III, said.

The GPS III will be four times more accurate, and the signal will be eight times more powerful than its predecessor to curtail jamming, said Keoki Jackson, Lockheed Martin’s program director. The new system will also be compatible with the European Union’s Galileo GPS satellite, he said.

Lockheed Martin is currently under contract to build two GPS III satellites and to produce long-lead items for the next two. The first is scheduled for launch in May 2014, Jackson said. The Air Force’s contract with Lockheed Martin contains options for total production of 12 GPS IIIs.