Comtech Receives Contract for Blue-Force Tracking Programme

Comtech Receives Contract for Blue-Force Tracking Programme

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US: Comtech Mobile Datacom has bagged a contract to continue the provision of sustainment support for the US Army's Force XXI Battle Command Brigade and Below-Blue Force Tracking (BFT-1) programme. Under the terms of the USD 38.2m deal, the Comtech Telecommunications subsidiary will provide engineering services and satellite-network operations on a cost-plus-fixed-fee basis, and programme management services on a firm-fixed-price basis, over the next three years. The contract has a one-year base performance period, and a total estimated value of USD 13.6m. It also includes two one-year option periods.

"The receipt of these contracts further demonstrates the ongoing importance of the US Army's BFT-1 satellite-tracking communication system,” said Fred Kornberg, Comtech Telecommunications President and Chief Executive Officer. In addition, the company has entered into a new BFT-1 IP contract with a potential value of USD 30m that enables the army to license certain aspects of Comtech's intellectual property (IP). This includes a USD 10m annual fee beginning 1 April and ending 31 March 2015, with two 12-month option periods. The army will also receive a limited non-exclusive right to use Comtech's IP after March 2017 for no additional fee if it exercises the two options and pays an aggregate of USD 30m of annual license fees. Initial funded orders of USD 12.5m, including the USD 10m annual IP fee for the base period, have already been placed by the army under these contracts, while negotiations on certain terms related its awards are also underway. The BFT-1 programme is a battle-command real-time situational awareness and control system that provides military commanders and forces with location information about friendly and hostile forces.

Source: Army Technology