These upgrades are intended to replace aging equipment and address technological change.
Australian contractors have been sought privately for the infrastructure upgrades.
Construction will be ongoing over several years with the refurbishment expected to be completed by 2014.
Pine Gap is a Defence facility jointly run by the Australian and US Governments.
The facility is an essential part of Australia's national defence and alliance with the US.
Pine Gap provides intelligence and early warning that would be unavailable from any other means and is unique in the region.
As stated in the 2009 Defence White Paper Defending Australia in the Asia Pacific Century: Force 2030, the capabilities at Pine Gap will evolve to meet new demands and take advantage of new technologies, and the facility will remain a central element of Australia's security and the relationship with the US.