Lockheed Martin Corp. beat out Boeing Co. to win a $1.4 billion U.S. Air Force competition to build a next-generation GPS satellite.

The Air Force said late Thursday that the space system program will improve military and civil users with navigation and timing services with greater security, accuracy and reliability.

A team lead by Lockheed, will also include ITT Corp., General Dynamics. They will build eight satellites with the first launch expected for 2014. The program will add 500 jobs at Lockheed Martin.

Another 24 satellites are planned. There are three phases of the program with each increment including additional capabilities. Lockheed Martin will also be responsible for launching the satellites into space. If all the satellites are built the contract could be worth as $3.57 billion.

Program management and spacecraft development will take place in Newton, Pennsylvania, with final assembly and testing to be located in Denver.

Company locations for other parts of the project include Sunnyvale, California; Cape Canaveral, Florida. An ITT teams will work from Clifton, New Jersey providing the navigation payload. General Dynamics will provide the Network Communication Element from Gilbert Arizona.

Lockheed Martin shares rose 10 cents, or 0.09 percent to $109.16. ITT shares fell 42 cents, or 0.63 percent to $66.26. General Dynamics shares fell 30 cents, or 0.32 percent to $92.93.