Globecomm Receives an Increased Scope Under Contract with a Government Contractor
11 March 2010
Globecomm Systems (NASDAQ: GCOM), a leading global provider of satellite-based communications infrastructure solutions and services, announced today that the company's wholly-owned subsidiary, Globecomm Services Maryland, has received an increase in the total value of a four year contract from a major US Government prime contractor valued up to $127 million.
The original contract amount was $42.4 million and $70 million has been authorized by the customer during the first three years of the contract. The customer has now exercised its option to authorize $34.2 million for the third contract year.
Each option year requires incremental funding and includes additional options to increase the scope of work. This $34.2 million option is fully funded and includes a significant increase in scope over the base contract. The $34.2 million option now brings the amount exercised to approximately $70 million, with approximately $57 million of options remaining in the final option year.
Global service network leverage
Globecomm will provide satellite earth stations and services that leverage the Company's global service network by providing voice, video, and data services in the company's rapidly growing managed network service businesses.
As a valued added offering, Globecomm will offer the customer life cycle services supported by a global network of qualified technicians enabling a highly professional, technical and responsive support handling activities such as implementation, preventive, and corrective maintenance, and a full range of 24 x 7 technical support services. These services include engineering support, equipment, complete with installation and maintenance to multiple locations in the Middle East, Africa, Asia, and certain Pacific and Caribbean Islands.
Maintaining customer relationships
Bill Raney, senior vice president of Globecomm Systems said: "This is another step toward fulfilling the Globecomm vision to remain the premier services provider supporting our customers operating in the far outreaches of the globe."
Keith Hall, president and chief operating officer of Globecomm Systems said: "The extension of this contract is a tremendous example of our ability to provide a full range of Managed Network Services. Globecomm prides itself in maintaining and building upon strong customer relationships. We look forward to continued expansion of this partnership in the years to come."
