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(Sharecast News) - Aerospace and defence technology firm Chemring said on Wednesday that its US subsidiary, Chemring Sensors & Electronic Systems, has secured a solesource indefinite delivery/indefinite quantity fullrate production contract as part of the Joint Biological Tactical Detection System programme.
Chemring said the threeyear IDIQ, awarded by the Capability Program Executive for Chemical, Biological, Radiological and Nuclear Defense, has a contract ceiling of $48.8m and an estimated completion date of June 2029.
The FTSE 250-listed group said the JBTDS system provides rapid detection and identification of airborne biological warfare agents, with the award following successful field testing and acceptance trials with the US military.
Chemring also announced it had received an initial production contract worth $36.3m, running through to March 2028, with work set to be carried out at CSES's facility in Charlotte, North Carolina.
Chief executive Michael Ord said: "For over two decades CSES has delivered mission-critical detection capabilities that protect the warfighter against complex and evolving biological threats, and we are delighted to receive this sole source contract in support of such a critical programme.
"This FRP award, which is the culmination of years of research and development, sits alongside our sole source position on the Enhanced Maritime Biological Detector programme for the US Navy, and positions Chemring as the market leader in the field of biological warfare agent detection."
As of 0910 BST, Chemring shares were up 2.15% at 523p.
Reporting by Iain Gilbert at Sharecast.com
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