Lockheed Martin is expected to win the contract to build next generation navigation satellites for the US military.
Boeing is also being considered for the contract.
According to The Wall Street Journal, the air force will award the US$1.8bn contract for the first eight "Block A" GPS III satellites later this week.
GPS III's first increment will feature up to ten times greater signal power than previous configurations, boosting resistance to jamming, perceived as a growing threat.
By Elizabeth Clifford-Marsh