COM DEV International Ltd. Said Wednesday that it has concluded contract negotiations and agreements with EADS Astrium Limited for work on two satellites being built for Skynet 5, a pounds sterling 2.5+ billion, 15-year, UK military communications service delivery program. COM DEV had previously announced that it had received Authorities To Proceed (ATPs) with work on this program.
The successful conclusion of these negotiations will result in an increase in the Company’s order book for this program in the amount of approximately $19.5 million CDN, as the Company had previously booked only the amounts authorized under the various ATP’s received from the customer. The total value of the contract is expected to be approximately $26 million USD (approximately $36.2 million CDN).
This work leverages on and expands to military frequencies and applications, COM DEV’s technology and heritage in its core payload electronics, switch and multiplexer products, and is to be completed over 26 months at COM DEV’s facilities in Cambridge, Ontario and Aylesbury, UK. Possible additional work on the two satellites is still under negotiation.
Commenting on this contract, COM DEV’s CEO, John Keating said, “This is one of the largest space contracts ever won by COM DEV. It marks a new milestone in the growth of our enduring relationship with EADS Astrium. It also represents a major step in our strategy to broaden our market base beyond the commercial space business that until recently dominated our order book. “
The prime contractor of the Skynet 5 program is Paradigm Secure Communications, which was formed by EADS Astrium in 1999 to bid for the Skynet 5 programme, which entails ownership and operation of Skynet 4/5 satellites and ground systems in order to deliver milsatcom services to the UK Armed Forces. Paradigm Secure Communications is wholly owned by EADS, the European Aeronautic Defence and Space Company.
