Lockheed Martin wins Air Force contract

Washington -- The U.S. Air Force has approved a $1.5 billion bid from Lockheed Martin to develop 12 navigational satellites, U.S. military officials announced.

The contract calls for Lockheed Martin to initially develop two Global Positioning System satellites, then proceed with the remaining 10, the U.S. Department of Defense said.

Lockheed and Boeing were in contention for the contract, The Washington Post reported.

There is a potential need for 20 additional satellites after the first 12, the Post reported.

The satellites would add to a fleet of 31 U.S. navigational satellites circling the Earth but officials said the older satellites need to be replaced.

"You have military troops all over that have to communicate, and they're dependent on satellites," space analyst with the Teal Group Marco Caceres told the newspaper.

Copyright 2008 by United Press International.