Lockheed Martin [LMT] said recently it submitted its final contract proposal for the Air Force’s next generation space debris radar tracking system.

The system, called Space Fence, will be a S-band radar tracking orbiting objects and other debris passing over the United States that could damage satellites. It will replace the Air Force Space Surveillance System (AFSSS), or VHF Fence, that has been in service since 1961.

Lockheed Martin and Raytheon [RTN] are the two companies gunning for the Space Fence contract. Nachshen said he couldn’t specify Raytheon’s subcontractors. A Raytheon spokeswoman said in September the company is partnering with “a number” of companies on Space Fence.

Lockheed Martin’s partners for the Space Fence program are General Dynamics [GD], AMEC of Plymouth Meeting, Pa., and AT&T [ATT]. GD will supply structural support, AMEC architecture and construction and AT&T orbital mechanics.

The Air Force plans Space Fence initial operating capability (IOC) in fiscal year 2017 and full operational capability (FOC) in FY ’20. The service will put one sensor site at Kwajalein Atoll in the Marshall Islands with a possible second site in western Australia, but the Air Force has said nothing has been negotiated nor finalized regarding a second site.

The Air Force set in September a Space Fence construction start date of September 2013, which the service anticipated to take 48 months. Air Force Space Command (AFSPC) chief Gen. William Shelton said in September the service will “likely” award a Space Fence contract in Spring 2013.

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