Defense electronics developer Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) US subsidiary Elbit Systems of America was awarded a contract from the US Army to develop, produce, and integrate mortar fire control systems.
The deal can result in orders of up to $197.5 million over five years. The initial order under the contract is valued at approximately $22 million and Elbit said it is expected shortly. The contract is a hybrid indefinite delivery /indefinite quantity-time and materials (ID/IQ-T&M) type contract.
Under the mortar fire control systems integration program deal, Elbit Systems of America will perform systems integration, development, production, fielding and support of the US Army’s mortar ballistic computer and various types of mortar fire control systems.
Work on this program will be performed in Fort Worth, Texas and by several subcontractors across the United States.
Elbit Systems of America president and CEO Raanan Horowitz said “Elbit Systems of America will be providing the Army with mortar fire control systems that increase accuracy and timely fires, and will do so while improving supply chain responsiveness and affordability.”
Elbit was recently picked to join a team developing a soldier-worn computer for the US Army. Elbit's Dominator computing system supports mission planning, situational awareness, target handling and device connectivity, as well as video and map displays.
Elbit Systems shares fell 1.96% on Nasdaq yesterday to $52.10, giving it a market cap of $2.19 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2009
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