Not sure who it was on the SH board stating they had information that Allen-Vanguard lost the Symphony exclusive supplier contract with Lockheed Martin - I wish they would come forward, as that would mean the contract has been withdrawn - BIG news affecting Allen-Vanguard.
Sept 25/08 - 7500 ECM requirements contract signed with Lockheed Martin.
globeinvestor.com
News from CNW Group
Allen-Vanguard signs three-year Requirements Contract with Lockheed Martin for up to 7,500 electronic counter-measures ("ECM") systems
17:01 EDT Thursday, September 25, 2008
- Estimated value $240-$300 million assuming maximum quantities
- Initial order for $7 million
OTTAWA, Sept. 25 /CNW Telbec/ - Allen-Vanguard Corporation (TSX: VRS) ("Allen-Vanguard" or the "Company") of Ottawa, Canada today announced that it has signed a Requirements Contract with Lockheed Martin for up to 7,500 Symphony ECM (or "jammer") component systems over three years, plus associated spares and accessories. The Company also today received an initial order under the Requirements Contract for approximately$7 million of Symphony component systems, and expects to deliver this order in the first quarter of fiscal 2009, which commences October 1, 2008. All amounts are in Canadian dollars unless otherwise specified.
The Requirements Contract signed today is in reference to the U.S. Department of Defense pre-solicitation notice of January 31, 2008, for a sole-source Indefinite Delivery/Indefinite Quantity (IDIQ) contract to Lockheed Martin for up to 2,500 Symphony jammers per year for three years.
Allen-Vanguard is the licensor and exclusive supplier of proprietary jammer component technology under a seven year Technology License and Supply Agreement (TLSA) signed with the Maritime Systems and Sensors division of Lockheed Martin in December, 2005.
Under the Requirements Contract signed today, Lockheed Martin has the right to exercise orders up to a maximum quantity of 2,500 units in any calendar year during the effective period, which commencesSeptember 23, 2008, and terminates December 31, 2011 . Should the maximum annual quantities be procured the estimated value to Allen Vanguard over the three-year term of the contract would be in the range of $240-$300 million, depending on the quantity of spares and accessories.
As stated in the Company's previous Symphony order announcement of August 5, 2008, Symphony system requirements by foreign governments are expected to be processed under the U.S. Foreign Military Sales (FMS) process. As a result, Allen-Vanguard expects that Symphony component system orders from Lockheed Martin may be placed in varying quantities at irregular intervals.
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IMHO, Luxton wouldn't know how to handle a $300 Million dollar order from Lockheed Martin - it would make it very difficult to plead poverty to the court. I hope it arrives soon !!! |
