By Marina Malenic

Lockheed Martin [LMT] has received a cost-plus-incentive-fee contract modification valued at approximately $1.4 billion for production of the Air Force’s fourth Advanced Extremely High Frequency (AEHF) satellite.

The contract includes manufacturing, integration and test of the fourth AEHF space vehicle. The satellite is contracted to be available for launch in 2017.

AEHF-1 was launched on Aug. 14, 2010 out of Cape Canaveral Air Force Station, Fla. and is currently in an orbit-raising phase, according to the Air Force. AEHF-2 has completed production and is in storage until its scheduled launch in 2012. AEHF-3 is undergoing Thermal-Vacuum Testing and is on track to complete production in 2011.

AEHF is designed to provide the Pentagon and other government officials with protected, high capacity, high-speed communications. It is the successor to Milstar.

AEHF-1 joins five legacy satellites that make up the Milstar constellation and will provide more communications capacity than all five of those vehicles combined, according to Air Force officials. The AEHF constellation of at least four satellites is eventually expected to provide 10 times the total Milstar capacity, as well as data rates at least five times faster.

AEHF-2 is expected to launch early next year, followed by the third in early 2012.

Canada, Netherlands and the United Kingdom have participated in the development effort and will receive new capability once AEHF-1 is online, Air Force officials have said.