[SatNews] A contract worth billions is always a celebratory event.

GeoEye, Inc. (Nasdaq: GEOY) has won a $3.8 billion contract award from the National Geospatial-Intelligence Agency (NGA) for increased commercial satellite-imaging capacity. This competitively awarded contract supports the EnhancedView program by providing products and services that will help meet the increasing geospatial intelligence needs of the intelligence community and Department of Defense. The award includes the following components:

• $2.8 billion for commercial satellite imagery purchases over the next ten years as follows:
• An extension of the NGA's current ability to purchase commercial imagery from the Company's existing satellite constellation under a Service Level Agreement (SLA) for $150 million per year
• An additional award to purchase commercial imagery, when GeoEye-2 becomes operational in 2013, for approximately $184 million per year for seven years
• $337 million cost share for the development and launch of GeoEye-2
• $700 million for value-added products and services to include the design and procurement of additional infrastructure to support government operations. This also includes the company's EyeQ™ Web Mapping Services to be delivered under the SLA

The period of performance for the contract runs initially from Sept. 1, 2010, to Aug. 31, 2011, with nine, one-year options. As with all government contracts, funding is subject to annual congressional budget approval.