TeleCommunication Systems Gets $58.3 Mln Worth Contract From U.S. Marine Corps

(RTTNews) - TeleCommunication Systems, Inc. (TSYS), a provider of highly reliable and secure mobile communication technology, on Thursday said that it has entered into a contract with the Defense Information Systems Agency or DISA worth $58.3 million.

Under the deal, the company will provide Managed Satellite Services, Ku satellite bandwidth, terrestrial support and 24-hour support services for the U.S. Marine Corps' Tactical Satellite Communications Network.

The initial funding on this award is $12.8 million for the base 12-month period starting August 1, 2013. The contract includes four, one-year option terms, which, if exercised, have a total contract value of $58.3 million.

The company noted that the contract was issued under the joint DISA/GSA Future Commercial Satcom Acquisition program.

TeleCommunication Systems is one of eight prime contract awardees under the $2.6 billion Custom SATCOM Solutions or CS2 vehicle, which was awarded in August 2012.

The CS2 contract has a base term of three years, ending August 2015 with two subsequent one-year option terms.

In pre-market activity, TeleCommunication shares were gaining $0.22 or 8.66 percent, and trading at $2.76.