Northrop Grumman Corp. lost its bid on a nine-year, $2 billion contract to Lockheed Martin, the Air Force announced Friday.

The contract was for manufacturing of ground stations for the new Transformational Satellite Communications system and was scheduled for the U.S. Air Force Space & Missile Systems Center at the Los Angeles Air Force Base.

The entire project is worth an estimated $18 billion and will greatly increase the military’s communication abilities for voice, data and video via a new satellite network using lasers instead of radio waves. Northrop’s Web site states the system should be partially operational by 2013.

What is known as “real-time capability” has become increasingly important in the military, especially in battlefield management. It allows commanders to provide quick updates to troops on enemy movements and locations. The system will also allow simultaneous data-sharing between branches.

The project will be managed from Lockheed’s San Jose plant.