Under this contract, Canberra's Penten will provide secure wireless devices to the army to protect it from cyber threats.
The company's AltoCrypt technology USB sticks will change the way the Army shares classified information, which is currently limited to hard-wired computer systems or paper files.
Minister for Defence Industry Christopher Pyne congratulated Pentent, saying the project will counter new cyber threats and streamline information in deployed headquarters of the Australian Defence Force.
"This advanced communication technology can be rapidly deployed to individual computers, which will change the way classified information is shared, used and accessed," Minister Pyne said.
"The development of these devices aims to increase agility, reduce complexity and enable better decisions by ADF commanders and their staff in a tactical environment. Initial trials will test how this technology could be used with our coalition partners, with a view to increasing the classification in the future."
This project was selected as part of the new Special Notice platform trialled by the Defence Innovation Hub, which allows Defence capability managers to call for industry and research organisations to submit proposals in response to specific capability challenges.
Minister Pyne said he was pleased to see the Defence Innovation Hub, the Australian Army and Australia's local industry partners working together to develop innovative solutions to enhance Defence capability.
"This activity is part of a broader program of work being carried out by the Army’s Land Network Integration Centre to investigate technologies that enable the faster deployment of tactical headquarters," he said.