Cubic Corporation (NYSE: CUB) has been awarded a new five-year contract to continue its support of force modernization in Lithuania.
This U.S. funded Foreign Military Sales effort is a continuation of Cubic's constructive simulation and force modernization programs in Lithuania, with a primary task being the development of a modern Combat Training Center.
The contract, from the U.S. Army's Robert Morris Acquisition Center, is with the Kingstowne, Virginia-based Defense Modernization Division of Cubic Applications, Inc. CAI is a wholly-owned subsidiary of Cubic Corporation and operates as the lead business entity of Mission Support Services (MSS), Cubic's military services segment.
The contract, for about $600,000 a year, extends through April 2016. Under the agreement, Cubic will assist with the design and an equipping plan for an integrated Combat Training Center (CTC) and help stand up the center after its completion.
Cubic has been involved with force modernization in Lithuania since 2001, initially assisting its defense staff in the development of a national security strategy analysis.
In December 2002, Cubic was awarded a $5 million contract sponsored by the U.S. Army Security Assistance Command to provide professional analysis, technical and staff assistance necessary to support the government of Lithuania in national goals and its efforts to become part of the North Atlantic Treaty Organization. This task was successful and Lithuania was invited to join the Alliance at the 2002 NATO Summit, and has been a contributive member since then. Cubic personnel also have assisted with the implementation and operation of a highly realistic constructive simulation training system -- the Joint Conflict and Tactical Simulation (JCATS) program -- interactive simulation software used by U.S. and NATO forces for training, analysis, mission planning and rehearsal.
In addition, Cubic has assisted with defense logistics and contracting, including making major strides toward creating an "acquisition corps" in the Lithuanian Ministry of Defense. Cubic supported Lithuania's deployment of troops to Afghanistan through mission rehearsal programs and by assisting with logistics support contracting.
"We at Cubic are really proud to have had a partnership with the U.S. and Lithuanian governments these past years, and assisting with significant force development and political-military programs," said Larry Smith, Vice President and General Manager of the Defense Modernization Division.
Source: Cubic Corporation (NYSE: CUB)
Date: Feb 27, 2012