[Satellite TODAY 09-21-10] The U.S. Army has exercised a $4.3 million contract option with Globecomm Systems to continue production of the Joint IP Modem (JIPM), Globecomm announced Sept. 20.
    The JIPM production deal with prime contractor Globecomm initially, signed in November 2007 under the U.S. Army’s World Wide Satellite Systems program, initially was valued at $9.9 million. The contract structure included multiple options that, if fully exercised, would increase the contract value to $87 million. The exercise of this option brings the base contract to $22.8 million, with $64.2 million of options remaining over the next five months.
    Globecomm provides JIPM program and contract management. The company issued a subcontract to ViaSat for the network system and modem design, including the integration of DVB-S2/DVB-RCS open standard IP technology.
    The JIPM program aims to leverage commercial technology and interoperability for military users. The JIPM network-centric IP modem is slated to become the U.S. military’s standard network IP modem for use on military and commercial satellites to provide demand-based satellite communication transport services to the warfighter. The U.S. Defense Information Systems Agency will field the JIPM in the military’s second-generation teleport rollout.
    In May, Globecomm received a $7.9 million increase in the total value of a four-year contract from an unnamed U.S. government prime contractor to provide satellite earth stations and services, as well as voice, video, and data services from its managed network service businesses. This contract is part of a four-year contract originally signed with the government customer in January 2008.
    In June, Citibank increased its committed credit facility to Globecomm Systems from $50 million to $65 million and renewed the facility for a year. The increased credit facility was used to issue bid bonds and performance bonds relating to Globecomm projects and contracts worldwide, term loans for potential acquisitions and also supports the company’s working capital needs. The credit facility expires May 26, 2011.