[Satnews] CNW/ -Â COM DEV International Ltd. (TSX:CDV), a leading manufacturer of space hardware subsystems, announced that it has signed a Strategic Supply Agreement making the company the exclusive supplier of satellite switches for a key customer over the next three years.Â This is the second long-term agreement COM DEV has reached with a major satellite prime contractor since the start of the company's fiscal year in November 2015, and the third overall.
The supply agreement uses a catalogÂ procurement approach to introduce a level of standardization and scale to the space manufacturing process which has typically operated on a custom engineering basis.Â The agreement establishes technical specifications, performance standards and pricing for a range of COM DEV's switch products, allowing the customer to place orders efficiently once a satellite has been awarded. Â
COM DEV anticipates that the lifetime value of the contract will be up to $10 million (CAD), contingent on the number of satellites its customer is awarded over the next three years.
"Our customers are increasingly embracing the catalogue approach.Â They recognize that it secures a key element of their supply chain for major satellite programs, while at the same time streamlining processes and reducing costs for both parties," said Mike Williams, president of COM DEV's products division.Â "We are well positioned to offer them this option due to our high volume production capabilities and the industry-leading innovations we have introduced in a new generation of switch products."