Question-and-Answer Session
[Operator Instructions]. We will go ahead and taken our first question from Troy Lahr with Stifel Nicolaus.
Troy Lahr - Stifel Nicolaus
Thanks. Just wondering if you guys can drill down a little bit on the problem at the spacecraft business. I mean this was a production type issue?
Daniel J. Murphy - Chairman and Chief Executive Officer
Yes that's right. ATK has a long history in composite components and structures for space flight actually, has a longest history in the industry, going back of probably 30 years. And so this is really an anomaly for us. The performance problem is really related to inability to properly manufacture a couple of components in support of prime satellite manufacturers. In essence we took our eye off the ball and basic blocking and tackling versus facility in Corona, California.
Concentration was managing... was sharply focused on integration of McDonald Dettwiler in the last half of last fiscal year. And there is some issues developing here that took a little long for us to get our arms around. So, exactly workmanship deficiencies put us in a gross margin loss on two programs and with that, we failed to win some anticipated follow-on business. Of course the two are absolutely related performance and follow-on opportunity.
And then the labor base relative to our foreseeable business became too high. So we taken actions needed to right size of the operation to refocus on the 80-K Class SS and we are very confident now that that we will have the ship righted within the next three or may be six months at the outset. The emphasis here is on restoration and profitability. Keeping in mind this is only about a $25 million sale base for the year, I would like to point out that elsewhere in the space business, we are doing exceptionally well.
I don't want to take away the view that this is representative. For example, 80-K space products are performing exceptionally right now. The FEMIS program, the five-tied together network satellites that we launched is responsible for NASA having discovered the cause of fluctuation in the Aurora Borealis, you may have read about that. That's a huge success in the first-ever use of netted satellites.
The Mars Lander which is active right now, uses our auxiliary power system and NASA is so pleased with the system that it has reported us, it expects that particular Lander to operate longer than it had been anticipated. And just very recently, we want to down select to 20 to just 4 competitors for the production of the future, standard satellite BUS for operational responses space. The contract itself is small but the potential is highly significant, actually providing the winner here, the key program upon which of the entire ORS system will be built.
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