(By Balaseshan) Globecomm Systems Inc. (NASDAQ:GCOM) said it has received a satellite network and communications equipment contract from a U.S. Government organization.
The company has been awarded a contract from the US Navy's Space and Naval Warfare Systems Center Atlantic, located in Charleston, South Carolina, for commercial-off-the-shelf satellite network and communications equipment and other services.
The indefinite-delivery/indefinite-quantity, firm-fixed-price, contract, has a base year value of up to $17 million, including four option years, which if exercised could bring the combined cumulative value of the multiple award contracts to an estimated $85 million, to be shared among the pool of awardees.
Globecomm said it would compete with two other companies who were awarded similar contracts for individual delivery orders under the terms and conditions of the awarded contract.
Chief Executive David Hershberg said this contract further deepens the company's support to a critical U.S. Government organization charged with rapidly delivering solutions that enable information dominance for Naval, Joint, National and Coalition Warfighters.
The company said the prime contract leverages Globecomm's program management and satellite communications engineering know-how in developing, deploying and supporting state-of-the-art solutions in a manner that is mutually aligned with the expectations of the Space and Naval Warfare Systems Command (SPAWAR) regarding responsiveness, excellence, credibility and accountability.
Globecomm offers a range of system integration, system products and network services for its customers. It provides end-to-end satellite-based communications solutions. It supplies infrastructure solutions for satellite-based communications, including hardware and software to support a range of satellite systems.
GCOM is trading up 1.83% at $10.04 on Tuesday. The stock has been trading between $9.44 and $16 for the past 52 weeks.