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Orbit International’s Power Group Announces Receipt of IDIQ Contract for $21,709,300 for Production of Common Aircraft Armament Test Sets
Orbit International’s Power Group Announces Receipt of IDIQ Contract for $21,709,300 for Production of Common Aircraft Armament Test Sets.
About this update from Orbit International Corp.
[{"type":"text","content":"\n\n HAUPPAUGE, N.Y., Sept. 19, 2017 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its Power Group (OPG), through its Behlman Electronics, Inc. subsidiary, has been awarded a $21,709,300 firm fixed price indefinite delivery/indefinite quantity (IDIQ) contract for the production and delivery of up to 180 Common Aircraft Armament Test Sets (CAATS) and 100 Pure Air Generator Adaptor Sets (PAGS PAS) for the U.S. Navy and foreign military sales.  Deliveries are expected to be completed in September 2020.\n The Company also announced that shortly after the receipt of the IDIQ, its OPG received the initial purchase order against this contract, for $11,648,070 for the production and delivery of 100 CAATS and 75 PAGS PAS units.  Deliveries under this contract are expected to commence in the third quarter of 2018 and continue through the third quarter of 2019.  The remainder of the orders against the IDIQ are expected to be received in the third quarter of 2018. Mitchell Binder,  President and CEO of Orbit International commented, “This contract, the largest ever received by our Power Group, was awarded as a small business set aside and represents a great accomplishment by our sales and engineering staffs as well as the senior management of the OPG.  The shipment and delivery of these units will require many aspects of production and testing to be offloaded to subcontractors and as a result, our expected gross margins for this contract will be considerably lower than our historical margins.  However, no additional engineering, selling and administrative personnel will be needed; therefore, this contract should have a positive impact on incremental profitability during the delivery period.” Binder added, “This award forms a solid foundation of business for our Power Group for approximately the next three years which we hope to build upon. In particular, we are encouraged by our expanding pre-production awards utilizing our VPX technology and other COTS product opportunities being added to our bid pipeline. Our Electronics Group also continues to uncover new business opportunities and book follow-on orders for major military programs.”         Orbit Interna...