[Satellite TODAY 08-04-10] In a justification and approval memorandum released Aug. 2, the U.S. Army said it might move away from Comtech for future Movement Tracking System 3 (MTS-3) contracts because the company is unwilling to license its MTS proprietary technology rights.
    The Army said is seeking an MTS 3 solution that is “free of any proprietary technology restrictions and amenable to free and open competition.”
    The document, dated July 9, also served as the approval mechanism for two Comtech MTS ceiling increases to $294 million, implemented in May and July. The Army will utilize two options to transition to a new system if Comtech is not selected for the MTS 3 program. “It could take up to 12 months for a vendor other than the incumbent to transition and become operationally effective,” the memo said.
    In July, the Army selected ViaSat over Comtech for the Blue Force Tracking 2 contract program worth $477 milion.
    Raymond James analyst Chris Quilty said the document’s language reiterates the Army’s intention to break away from its current relationship with Comtech. “Additionally, we have long argued that the MTS program is likely to follow the BFT program’s lead, suggesting that Comtech is now likely to lose the MTS 3 program when finally rebid.”