MRO Magazine

Comtech Awarded $19.8 Million in Orders to Support the U.S. Army’s Blue Force Tracking Program

By Business Wire News   


April 6, 2015Comtech Telecommunications Corp. (Nasdaq:CMTL) announced today that its Maryland-based subsidiary, Comtech Mobile Datacom Corporation received notice that the U.S. Army exercised Option Year 1 of the Company’s three-year Blue-Force Tracking (“BFT-1”) sustainment contract and related BFT-1 Intellectual Property license agreement and that it has been awarded initial funding totaling $19.8 million to continue to provide sustainment support for the U.S. Army’s Force XXI Battle Command Brigade and Below – BFT-1 program, a battle command real-time situational awareness and control system.

The $19.8 million in funding for Option Year 1 includes $10.0 million for the U.S. Army to continue to license certain of the Company’s BFT-1 intellectual property, with the remaining funding designated for engineering services and satellite network operations for which Comtech is paid on a cost-plus-fixed-fee basis and program management services for which Comtech is paid on a firm-fixed-price basis. The Option Year 1 performance period began April 1, 2015 and ends March 31, 2016. The Company expects to receive additional funded orders for Option Year 1.

The Company’s three-year BFT-1 sustainment contract and related BFT-1 Intellectual Property license agreement, both of which were first awarded in April 2014, now have a combined not-to-exceed value of $68.5 million. Total funding received to-date for both contracts approximates $43.4 million. Both contracts provide for one remaining twelve-month option period exercisable by the U.S. Army. If the U.S. Army exercises Option Year 2 of the Intellectual Property license agreement for $10.0 million, which covers the period April 1, 2016 through March 31, 2017, the U.S. Army will receive a limited non-exclusive right to use certain of Comtech’s intellectual property after March 31, 2017 for no additional intellectual property license fee.

Dr. Stanton Sloane, President and Chief Executive Officer of Comtech Telecommunications Corp., said, “We are pleased that Comtech and the U.S. Army will continue to work together to sustain this critical worldwide military communications system. The receipt of these contracts further demonstrates the ongoing importance of the U.S. Army’s BFT-1 satellite tracking communication system.”

Comtech Mobile Datacom Corporation, a Germantown, Maryland-based company, is engaged in the provision of satellite-based packet data communication systems and location and messaging services through the use of advanced communication and network technology. To learn more about Comtech Mobile Datacom, please visit the company’s website at

Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company believes many of its solutions play a vital role in providing or enhancing communication capabilities when terrestrial communications infrastructure is unavailable, inefficient or too expensive. The Company conducts business through three complementary segments: telecommunications transmission, RF microwave amplifiers and mobile data communications. The Company sells products to a diverse customer base in the global commercial and government communications markets. The Company believes it is a leader in most of the market segments that it serves.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.


Michael D. Porcelain, Senior Vice President and Chief Financial Officer
(631) 962-7000


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