Lockheed, GM to Vie for U.S. Satellite Project : Space: Air Force contract for missile- monitoring system could be worth $22.6 billion.

Lockheed Martin Corp. and General Motors Corp.’s Hughes division will lead separate teams in the continuing competition for an Air Force satellite contract that could be worth $22.6 billion through 2020.

The Air Force officially selected the teams late Friday and gave each $23 million to continue refining proposals.

Lockheed Martin’s team is led by the company’s Lockheed Missiles and Space division, based in Sunnyvale, Calif. Lockheed’s partners include Loral Corp. and GenCorp Inc.’s Aerojet division.

The Hughes team, led by the company’s Los Angeles-based Hughes Aircraft division, includes TRW Inc.

In late 1996, the Air Force will choose one of the teams to build the Space-Based Infrared System.

The two teams were chosen from among three that originally submitted proposals. The third proposal, submitted before Lockheed Martin was created by the merger of Lockheed Corp. and Martin Marietta Corp., was from a team including Martin Marietta, Northrop Grumman Corp. and Harris Corp.

The Space-Based Infrared System will be a group of high-powered satellites monitoring the globe for missile launches. The first satellite is scheduled to be launched in 2002. It will replace the Defense Support System, which dates back to the 1960s.

TRW has been the primary builder of Defense Support System satellites. It has delivered 17 satellites and is finishing six more.