The US Air Force announced Thursday that Lockheed Martin Corp gained a potential $3.6 billion contract to build a new network of navigation satellites for military and civilian use.

The Pentagon's No. 1 supplier, Bethesda, Maryland based leading multinational advanced technology aerospace manufacturer, Lockheed Martin Corp won the deal to supply the first batch of satellites in the new Global Positioning System, known as GPS III, edging out the Chicago, Illinois based aerospace and defense corporation, Boeing Company.

According to reports, the contract covers development of the first two Global Positioning System III satellites, with options for 10 more, and the total value of all 12 satellites could reach $3.57 billion.