EM Solutions signs $150 million defence satellite communications contract

The federal government’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, sparking a major expansion for the Brisbane company.

Worth $150 million over seven years, this is by far the largest contract ever signed by EM Solutions which will take the role of the Prime Contractor, initially employing 30 new positions, some of which have already been filled.

The contract also provides up to a further $50 million in material and service purchases by CASG once the initial programme deliverables are approved.

EM Solutions, a subsidiary of defence contractor Electro Optic Systems, is also expanding its local industry supply chain to support, develop and deliver programmatic, integrated logistics services (ILS) and training.

@AuManufacturing foreshadowed the company’s success in April.

EM Solutions’ Vice President of Programs John Logan said the contract signing followed an announcement in early 2022 that the company had been selected to respond to a limited release tender for Work Package 1 of the SEA1442 Phase 5 program.

Logan said: “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.”

The company said it would continue to work with existing partners and develop new sovereign component and subsystem suppliers for its Naval maritime SATCOM systems.

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) programmes.

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.

Further reading:
EM Solutions’ new orders, defence opportunities

Picture: EM Solutions