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Software industry

Digi International Secures $900 Million U.S. Army Contract

Strategic Insights

— 1 min read

Digi International Inc. has been selected as a subcontractor by TELOS Corp. for the U.S. Army's Small Multiuser Computer (SMC II) contract, valued at $900 million. This indefinite-delivery, indefinite-quantity contract, expected to run for three years, starting January 1, 1996, with two one-year extensions, will provide networking hardware and software for all Army and Navy users. Digi will offer its full range of network and remote access products, including serial port, Integrated Services Digital Network (ISDN), and physical layer products. This contract is expected to generate over $2 million in revenue annually for Digi International.

Key Takeaways:

  • Digi International secured a $900 million contract with the U.S. Army as a subcontractor for the Small Multiuser Computer (SMC II) project.
  • The contract is an indefinite-delivery, indefinite-quantity (IDIQ) contract, expected to run for three years, starting January 1, 1996, with two one-year extensions.
  • Digi will provide its full range of network and remote access products, including serial port, Integrated Services Digital Network (ISDN), and physical layer products.
  • The contract is expected to generate over $2 million in revenue annually for Digi International.
  • Digi has also been selected as a subcontractor for the U.S. Army ICARDS contract, with an expected value of significant sales annually.
  • The company has been named on Forbes magazine's list of America's best small companies for the last six years.
  • Digi International has been selected as a subcontractor for other notable contracts, including the Air Force ULANA II contract and the EDS contract.

Statistics:

  • Estimated value of the U.S. Army's SMC II contract: $900 million.
  • Expected revenue generation of the contract annually: over $2 million.
  • Number of years expected to run for the contract: three years, with two one-year extensions.
  • Value of the Air Force ULANA II contract: $297.1 million.
  • Number of years for the ULANA II contract: through 1996.
  • Awards and recognitions: named on Forbes magazine's list of America's best small companies for six years.

Sources:

  • PRNewswire
  • Digi International Inc.
  • TELOS Corp.

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