The Air Force’s contract award for its multi-billion dollar next-generation space surveillance radar known as Space Fence could be further delayed as the Pentagon determines whether it can afford it in an era of tightening budgets.

“The award is being held up while we determine whether or not this is a priority for the Department,” Air Force Space Command (AFSPC) chief Gen. William Shelton said yesterday at a Peter Huessy congressional breakfast series event on Capitol Hill.

Air Force Space Command (AFSPC) chief Gen. William Shelton. Photo: Air Force.

Shelton said his personal opinion is that Space Fence is a high priority for both Space Command and the United States in terms of space situational awareness (SSA), so he hopes the Air Force will get authority to award the contract “very shortly.” SSA is the monitoring of space debris.

Raytheon [RTN] and Lockheed Martin [LMT] are the two prime contractors gunning for the $3.5 billion Space Fence contract. The Air Force in April expected a contract to be awarded by the end of June (Defense Daily, April 12).

Shelton said the Space Fence decision will be made at the defense secretary or deputy defense secretary level and that the only thing the Air Force is waiting on is clearance, possibly meaning they have determined a winner in the competition. An Air Force spokeswoman said yesterday she wasn’t sure if a winner had been identified yet. Representatives from Lockheed Martin and Raytheon did not return emails for comment yesterday.

While Shelton hopes Space Fence will be cleared for award because the Air Force doesn’t have anything that could replicate its capability, he did say the service is determining a backup plan in case it can’t move forward. Shelton said the Air Force is determining if it can make improvements or start a service life extension program (SLEP) for a space sensor located at Eglin AFB, Fla. An AN/FPS-85 phased array radar at Eglin, built in 1969, performs space surveillance and reconnaissance with day and night detection, tracking and identification of manmade objects in Earth orbit in all types of weather, according to the Air Force.

Air Force civilian leaders said in April they thought Space Fence was on “good footing” because it made it into President Barack Obama’s fiscal year 2014 budget request. But Acting Air Force Under Secretary Jamie Morin said at the time even if programs make it into the budget request, they are not immune to future budget challenges.

Kwajalein Atoll in the Marshall Islands has been selected as the first of two potential Space Fence sites. Shelton yesterday said Kwajalein Atoll was selected because it provided the ability to cover both low inclination and high inclination orbits. The Air Force said it wants two sites, but the second site is contingent on funding.

The Air Force said last year it had a goal of starting Space Fence construction this fall. The service also at the time said it anticipated a construction timeline of 48 months. Space Fence would replace the Air Force’s Space Surveillance System (AFSSS), or VHF Fence, which has been in service since 1961 (Defense Daily, Nov. 15).