EM Solutions signs acquisition contract to deliver Naval SATCOM Solutions under SEA1442 Phase 5 Program
- Date: 19th June 2023
- Company: EOS Defence Systems
The Commonwealth’s Capability Acquisition and Sustainment Group (CASG) has selected EM Solutions to upgrade the Royal Australian Navy’s SATCOM systems across its existing fleet of vessels.
This is by far the largest contract ever signed by EM Solutions and demonstrates how support for the Sovereign Defence Industry, particularly Small to Medium Enterprises (SMEs), can deliver world leading capability and enhance sovereign capability. EM Solutions enters this contract as the Prime Contractor which will initially result in around 30 new positions, some of which have already been filled, at the company’s head office in Brisbane. EM Solutions is also expanding its local industry supply chain to support, develop and deliver programmatic, integrated logistics services (ILS) and training. The company will continue to work with existing partners and develop new sovereign component and subsystem suppliers for its Naval maritime SATCOM systems.
The acquisition contract is initially valued at approximately $150m over the next seven years and provides up to a further $50m in material and service purchases by CASG once the initial program deliverables are approved. The goal of the contract is to modernise both the Primary and Alternate SATCOM for the existing RAN Fleet using EM Solutions’ King Cobra and Cobra SATCOM terminals. The development of each of these terminals has been supported by Australian Defence through the Defence Innovation Hub and earlier Concept Technology Demonstrator (CTD) programs.
This contract does not include ongoing support and sustainment services, however as previously announced in October 2022, EM Solutions already has an existing contract with CASG to support the deployed Cobra systems and those previously acquired for new ship builds.
While the future support of equipment provided under the SEA1442 Phase 5 acquisition contract may lead to additional ongoing revenue to EM Solutions, it will be subject to separate procurement processes and decisions by Defence.
John Logan, EM Solutions’ Vice President of Programs said, “The signing of this contract is the result of a close collaboration between EM Solutions and CASG since the announcement in early 2022 that EM Solutions had been selected to respond to a limited release tender for Work Package 1 of the SEA1442 Phase 5 program. It has been a learning journey to ensure the delivery of optimised, cost-effective capability to our sailors in the future. Through a technology evolution program EM Solutions aims to support Navy in managing SATCOM technology evolution and obsolescence management continuously. The trust shown by the ADF in EM Solutions, transitioning from a component supplier to a prime contractor, is a credit to everyone who has contributed to our business to achieve this significant milestone, as with our previous contract negotiations with CASG.”
EM Solutions has already achieved significant success securing export contracts for its Naval Maritime SATCOM solutions, and with this further vote of confidence from the ADF they are well placed to continue expanding their business with allied Navies globally.