Comtech (NASDAQ:CMTL) has announced a US Army contract with a maximum ceiling value of $544 million, sending its shares more than 8% higher in early Monday trading.
The company said in a statement that it will provide onsite professional engineering services, as well as supply and support the satellite and terrestrial networking communications technologies for the Project Manager Tactical Network under the Global Field Service Representative (GFSR) support program.
It explained that the GFSR program provides ongoing communications and IT infrastructure support for the Army, Air Force, Navy, Marine Corps, and NATO. This enables US and coalition forces to maintain robust, resilient, and secure connectivity for global all-domain operations in all environments, Comtech added.
"Comtech's professional engineering services and our extensive portfolio of resilient, blended, smart-enabled networked communications technologies will help the DoD (US Department of Defense) and coalition partners maintain an assured information advantage in an age of Combined Joint All Domain Command and Control operations,” commented Comtech president and CEO Ken Peterman.
Comtech noted that the contract was awarded on its existing agreement with the US Army, which leverages the 10-year, $5.1 billion Global Tactical Communications Systems (GTACS) II indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle.
It was initially selected as one of multiple GTACS II IDIQ awardees in 2020.
The company’s shares traded 8.7% higher at $8.93 by 10am in New York.
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