NATIONAL HARBOR, Md.–The Air Force is “likely” to award the Space Fence contract in the spring of 2013, its space commander said yesterday.

“We’ll likely award the contract in the spring of 2013. It’s what we’re looking at right now,” Air Force Space Command chief Gen. William Shelton told reporters at the Air Force Association’s 2012 Air and Space Exposition here. “It looks like we will be able to have operational capability in fiscal year 2017.”

Shelton said Kwajalein Atoll in the Marshall Islands will host Space Fence. Air Force spokeswoman Auburn Davis said the service is looking at a possible second Space Fence site in Australia, but nothing has been negotiated or finalized.

Space Fence is a next-generation radar system that will track orbiting objects passing over America that could damage satellites. It will replace the Air Force Space Surveillance System, or VHF Fence, that’s been in service since 1961.

Shelton said Space Fence will provide the service the ability to spot softball-sized objects 1,200 miles from earth.

Lockheed Martin [LMT] and Raytheon [RTN] are competing for the Space Fence contract. Both companies have completed their preliminary design reviews (PDR) (Defense Daily, July 30). Lockheed Martin’s partners for the Space Fence program are General Dynamics [GD], AMEC of Plymouth Meeting, Pa., and AT&T [ATT] (Defense Daily, March 20).

The Air Force values Space Fence at more than $3.5 billion.