Orbit International Receives Additional Release against IDIQ Multi-Year Contract from U.S. Army Communications Electronics Command
biz.yahoo.com
Wednesday January 18, 8:30 am ET
Follow-on Order of $620,000
Total Contract Could Exceed $5 Million
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Jan. 18, 2006--Orbit International Corp. (Nasdaq:ORBT), a military defense electronics supplier, today announced that it had received additional orders in excess of $620,000 released against an existing firm fixed price indefinite delivery/indefinite quantity (IDIQ) multi-year contract from the U.S. Army Communications Electronics Command (CECOM), Fort Monmouth, NJ. The follow-on order, for the manufacture and delivery of Radar Display Units (RDUs), supports ongoing U.S. Army and Marine Corps Firefinder Program requirements. Deliveries under this latest release are expected to commence in the third quarter of 2006 and continue through the fourth quarter of 2006.
This current IDIQ contract provides Radar Display Units pricing to meet anticipated U.S. Army TPQ 36/37 and Marine Corps TPS-59 system requirements of up to 100 units annually for a period of five years. The Company has previously delivered approximately 270 RDUs valued at approximately $2,850,000 to U.S. Government procurement agencies. If the current IDIQ contract is fully exercised, the award would exceed $5,000,000 for the period ending August, 2008. The contract includes an option provision to extend the RDU requirement, subject to revised/updated firm fixed prices for additional Radar Control Firefinder Display requirements.
The RDU provides artillery battalions with small, lightweight, highly mobile radar sets capable of detecting weapon projectiles launched at any angle over 360 degrees of coverage. Upon projectile detection, the weapon location is computed and is used to direct counter fire with precise accuracy.
Dennis Sunshine, President and CEO of Orbit, commented, "Since the contract for these RDU units included an expedited delivery schedule, it appears that the TPQ 36/37 and TPS-59 systems have been extremely successful by providing our troops in current battlefield conflicts with accurate positioning information that locates and eliminates hostile mortars within any short-to-medium range enemy positions."
Mr. Sunshine added, "This multi-year agreement provides both branches of the military with firm fixed prices for critical RDU requirements for a period of five years. Although this latest award is part of an Indefinite Delivery/Indefinite Quantity contract, we expect that our customer will exercise the total quantities under the current contract and then have additional requirements beyond 2008. If this IDIQ contract is fully exercised, it would contribute in excess of approximately $2,000,000 in additional revenue through August 2008." |
