The Associated Press

DENVER - Lockheed Martin Corp. has won a government contract worth up to $4.6 billion to make target missiles as part of a Pentagon plan to test the nationxs missile defense systems. Some of the work would be done in Huntsville.

The contract announced Tuesday initially is worth $210 million over a four-year period. But it can be extended over a decade and carries the $4.6 billion price tag if certain conditions are met.

xProtecting deployed forces, civilian populations and our territory from ballistic missile attack is one of our nationxs highest priorities.x G. Thomas Marsh, executive vice president of Lockheed Martin Space Systems, said in a statement.

The Bush administration plans to deploy a missile defense system beginning with 10 ground-based interceptor missiles next year and 10 more the following year.

The Pentagon contract calls on Lockheed Martin to design and build missiles that will try to mimic an enemy missile heading for the United States. The Pentagon will try to knock out the dummy missiles with an interceptor.

Lockheed has previously developed 16 test missiles for use by the Pentagon. Production of the new missile is expected to begin next year.

Aside from Lockheedxs facilities in Colorado, the work also will be done in Huntsville, Albuquerque, N.M., and the Washington, D.C., area. The company is based in Bethesda, MD.

Separately, Lockheed also announced Tuesday it had won $100 million contract to launch a satellite for the National Reconnaissance Office. The NRO operates the nationxs spy satellites.

The Atlas V rocket that will carry the NRO satellite into space will be built at Lockheedxs Waterton Canyon facility.

In trading Wednesday on the New York Stock Exchange, Lockheed shares closed down 2 cents at $48.40.