Three teams competing for the UK Ministry of Defence’s (MoD) multi-billion pound Project Marshall contract are planning to submit their respective proposals by the end of next week.

Led by BAE Systems and Lockheed Martin, the two industry teams and the Aquila Air Traffic Management Services consortium are anticipated to submit their bids for the £1.5bn contract by 11 January 2013, The Telegraph has reported.

Expected to be awarded in 2015, the Project Marshall contract, formerly the Joint Military Air Traffic Services (JMATS) project, aims to deliver a fully integrated terminal air traffic management, surveillance and communications service to enable safe UK military operations at home and abroad.

"It will allow aircraft to operate more safely in all weathers and will significantly improve availability of assets."

A MoD spokesman told the newspaper the project is expected to offer advanced and secure military air traffic management to all MoD operated sites across the country, permanent overseas bases and in support of UK and coalition forces worldwide.

”It will allow aircraft to operate more safely in all weathers and will significantly improve availability of assets, aligning them more closely with the civil sector,” the spokesman added.

Work under the contract will primarily be performed for the Royal Air Force (RAF), and also includes replacement of military air traffic infrastructure at permanent bases, including Gibraltar, Cyprus and the Falklands, as well as at air force bases and air weapon ranges at home and overseas.

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With a performance period of 22 years, the project represents one of the largest military support services contracts.

It also features £330m funding for the replacement of radars and control centres.

The programme is anticipated to benefit the MoD with significant cost savings over its lifetime through enhanced efficiencies, economies of scale and innovation.

The BAE-led team includes Indra, Altran Praxis and LFV Aviation Consulting, whereas Selex Systems Integration and Cobham form part of the Lockheed-led team, called Fusion.

The Aquila Air Traffic Management Services consortium comprises NATS Services, Babcock, Thales UK, Frequentis and Jotron.