The Defense Department awarded Lockheed Martin [LMT] a contract worth up to $1.85 billion last week to upgrade 145 of Taiwan’s Block 20 F-16A/B fighter jets, according to a company statement.

This retrofit program will include the addition of an Active Electronically Scanned Array (AESA) radar, embedded global positioning and upgrades to the electronic warfare and other avionics systems. Lockheed Martin spokesman B.J. Boiling said yesterday in an email the company will act as the prime contractor for the AESA radar and will take solicitations from other contractors.

Lockheed Martin was recently named the prime integrator to upgrade the Air Force’s F-16 fleet. This new program will be based on the F-16V configuration that was announced by the company earlier this year. The F-16 is developed by Lockheed Martin.

Britain’s BAE Systems, who won the competition to upgrade the avionics and electronics systems on South Korea’s F-16 fleet, did not bid for the Taiwan F-16 radar upgrade contract.

“BAE Systems was not part of the decision process in Taiwan, nor was BAE Systems offered the opportunity to compete or be evaluated for the program,” company spokesman Neil Franz said in a statement. “We respect Taiwan’s decision. However, we believe the lack of competition does not ultimately provide the needed flexibility to cost-effectively solve the unique problems faced by the end user.”

Raytheon [RTN] Space and Airborne Systems Vice President for International Business Development Jim Hvizd said yesterday in a statement the company is interested in supplying its AESA radar to Taiwan’s F-16s as a subcontractor to Lockheed Martin.

“Raytheon continues to work closely with the United States Air Force and Lockheed Martin and we stand ready to respond to an F-16 AESA upgrade solicitation with our combat-proven Raytheon Advanced Combat Radar (RACR) technology,” Hvizd said.

Northrop Grumman [NOC] Electronic Systems Vice President and General Manager for ISR and Targeting Systems Joe Ensor said yesterday the company is also interested in providing its Scalable Agile Beam Radar (SABR) for Taiwan’s F-16 radar upgrade competitions.

“Northrop Grumman is offering its SABR radar for the United States and these international F-16 upgrade programs (Taiwan, South Korea, Singapore), and looks forward to responding to the U.S. government solicitation for an impending F-16 AESA competition that will serve to determine the U.S. AESA supplier for these four customers,” Ensor said in a statement.

DoD originally announced the potential sale in a Sept. 21, 2011, Defense Security Cooperation Agency (DSCA) statement.