Minnesota-based ATK was awarded the contract from the Air Force's Arnold Engineering Development Center. Under the $26.1 million deal, ATK will develop the Space Threat Assessment Testbed System to support the Defense Department and National Reconnaissance Office with early operational testing.

Officials say the STAT system will be expected to simulate the Earth's orbit for defense testing and training, among other requirements for space operations and developing techniques to counter man-made threats.

"STAT capabilities will provide a new integrated, real-time simulation of complex space environments to enable technology maturation and performance verification necessary to advance technologies without incurring the cost and schedule of a space flight," Bill Kasting, ATK Integrated Systems vice president and general manager, said in a statement.