The 2.1km long guided mass rapid transit passenger system will run between two purpose-built stations, heading out from Stirling Place, close to Luton Airport Parkway station, to the airport terminal.
It will be broken down into two main packages. Civils work worth up to £115m will include viaducts, embankments, cut and cover works and station platforms.
The track, rolling stock and associated systems package will be subject to a separate contract worth up to £35m to be awarded concurrently.
The scheme forms part of an ambitious £1.5bn inward investment programme revealed by the council, which outlines a 20-year plan for major transformation of the town.
Planning permission is being sought from Luton Borough Council and Central Bedfordshire Council with view to work starting later this year. The transit system is due to open in 2021.
The link to be funded by the council, which owns the airport, would reduce journey time to London to just 30 minutes.
The bid documents are available from the Luton procurement site.