ATK [ATK] has been awarded a contract by Lockheed Martin [LMT] to build the A2100 satellite bus structures for the next- generation Global Positioning System, or GPS III.

The first block of the new generation satellites, known as GPS IIIA, are expected to deliver significant enhancements over current GPS space vehicles. The ATK contract includes fabricating a GPS III Non-flight Satellite Testbed structure and the first two GPS IIIA satellite bus structures, with the first delivery projected for early 2011. The contract includes options for up to 10 additional satellite bus structures and could be worth up to $30 million, according to the company.

“The next-generation GPS satellites will provide improved accuracy and greater anti-jam capability for military users, and for civil users they will provide interoperability with international systems,” David Shanahan, vice president and general manager of ATK space structure and components, said in a statement released yesterday.

The ATK-manufactured GPS IIIA bus structure is made from lightweight, high-strength advanced composite materials and is designed to withstand the accelerations and vibrations generated during launch. The bus structure also supports the spacecraft navigation system.

ATK has been Lockheed Martin’s A2100 bus structure supplier since the first A2100s were launched in 1996 for the company’s commercial satellite customers.