By Doug Cameron 

The Pentagon on Monday awarded Lockheed Martin Corp. a $915 million contract for the first phase of its Space Fence that would track more of the fast-growing field of debris in space that threatens to disable or destroy satellites and manned spacecraft.

Lockheed, which fended of competition from Raytheon Corp., will build a powerful radar system intended to quintuple the amount of space junk the U.S. can monitor, and enable officials to warn satellite operators to move their spacecraft before possible collisions.

The contract to build a radar station on an atoll in the Marshall Islands is highly prized as Pentagon budget pressures have reduced the number of new military projects, with the winner able to stake a better claim for follow-on business, such as a second station in Australia.

Lockheed and Raytheon cooperate on programs such as the Patriot missile-defense system, but have been involved in fierce tussles for new business in recent years. Raytheon last year prevailed in a closely watched contest to build a new radar for the Navy.

Raytheon said it was notified of the Space Fence award decision by the Air Force, which runs the program, and that "pending our post-decision debrief with the Air Force, it is inappropriate to comment at this time."

There are an estimated half million bits of man-made junk whizzing around the Earth that could disable or destroy a satellite, according to the National Aeronautics and Space Administration. From spent rocket parts to paint flecks--and for a short time even a glove--they range in size from a few centimeters across to a deactivated, 30-foot satellite weighing nine tons.

All pose a threat to the 1,200 operational satellites in orbit from various nations that are essential for cellphone service, Internet access, Global Positioning System mapping and bank machines, among other functions.

Lockheed has until 2018 to make the proposed space fence operational, the Pentagon said Monday.

Write to Doug Cameron at doug.cameron@wsj.com

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