EDO Corp. Exercises $12-Million Option for Navy's Airborne Mine Countermeasures Systems Upgrade

Strategic Insights -

The Department of the Navy has exercised a $12-million option for the supply of Mod 4 Upgrade Kits for the Navy's MK 105 Airborne Mine Countermeasures (AMCM) Systems, marking a follow-on to the basic contract announced in July 1998. EDO's Marine and Aircraft Systems unit will manufacture the upgrade kits at its North Amityville, N.Y., facility, with initial shipments commencing in 2000. The kits will be installed into the MK 105 AMCM Systems under a separate contract, with deliveries extending into 2002. Frank A. Fariello, EDO's chairman and chief executive officer, highlighted the upgrade's benefits, citing reduced maintenance requirements and improved reliability and performance capabilities.

Key Takeaways:

  • EDO Corp. has been awarded a $12-million option to supply Mod 4 Upgrade Kits for the Navy's MK 105 Airborne Mine Countermeasures Systems.
  • The option exercise is a follow-on to the basic contract announced in July 1998, with a total value of approximately $21 million.
  • The Mod 4 Upgrade Kits will be manufactured by EDO's Marine and Aircraft Systems unit at its facility in North Amityville, N.Y.
  • Initial shipments of the kits are expected to commence in 2000, with deliveries extending into 2002.
  • The upgrade kits are designed to improve the reliability and performance capabilities of the MK 105 Airborne Mine Countermeasures System, the primary airborne magnetic minesweeping capability of the U.S. and Japanese navies.
  • EDO is a world leader in Airborne Mine Countermeasures Systems, with a portfolio of products including the MK 105 and the upcoming Shallow Water Influence Minesweeping System (SWIMS).
  • EDO designs and manufactures advanced electro-optic, electronic, mechanical, acoustic, and composite products for the defense and aerospace industries.

Statistics:

  • $12 million: The value of the option exercised by the Department of the Navy for the supply of Mod 4 Upgrade Kits.
  • $21 million: The total value of the basic contract announced in July 1998 and the exercised option.
  • 2000: The year in which initial shipments of the Mod 4 Upgrade Kits are expected to commence.
  • 2002: The year in which deliveries of the upgrade kits are expected to conclude.

Sources:

  • EDO Corp. press release, January 11 (no date specified)
  • "EDO Awarded $12-Million Option for Airborne Mine Countermeasures Systems Upgrade" (no source date specified)
  • Company website (no date specified)