Allen-Vanguard Signs Contract for Up to 7,500 Jammers
OTTAWA --- Allen-Vanguard Corporation 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 commences September 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.
Allen-Vanguard Signs Three-Year Requirements Contract with Lockheed Martin for Up to 7,500 Electronic Counter-Measures (ECM) Systems