The two companies will, subject to completion of final negotiations, carry out a two-year competitive assessment on the first phase of the GBAD programme, worth around 40 million pounds (58.2 million euros, 66 million dollars) each.

The GBAD system will supply an enhanced air defence command and control system to help combat the wide range of air threats to Britain's land forces -- including attack helicopters, cruise missiles and unmanned air vehicles.

A single contractor to demonstrate and manufacture GBAD will be chosen in late 2005 following the conclusion of the assessment phase, the defence ministry said.

The first phase of the programme is scheduled to come into service from

WAR.WIRE