The contract calls for Boeing and its partner Ball Aerospace and Technologies Corp. to develop and launch a satellite capable of tracking the movement of objects through space by late 2007.
The Department of Defense will utilize data generated by SBSS to support military operations, the aircraft and defense giant said.
Additionally, the National Aeronautics and Space Administrationcould use the information to protect International Space Station and Space Shuttle missions from orbital debris.
Boeing's Phantom Works unit will have operational responsibility for the system for up to one year, before moving it to the Air Force.
Boeing hopes the contract could strengthen its hand in future bidding contests for further programs related to two billion dollar Space Situation Awareness (SSA) market.