The expanded agreement has a potential value between $120 million and $350 million over a period of five years, with the full value dependent on confidential Insitu customer contracts and the volumes identified therein.
Todd Alder, CEO and managing director of Orbital UAV, said, "The increased scope and scale of work within the agreement demonstrates Orbital UAV’s ability to meet the growing requirements of the rapidly evolving unmanned aircraft system (UAS) market and represents a key milestone in the company’s strategy to deliver sustainable growth."
The expanded LTA covers the delivery of multiple propulsion systems and services that will be applied across Insitu’s entire range of UAS platforms, including:
- The assembly, supply and overhaul of three highly configurable propulsion systems, forming Orbital UAV’s Modular Propulsion Solution; and
- The assembly, supply and overhaul of two Insitu designed engines – built and serviced from Orbital UAV’s new operational facility in Hood River, Oregon, US.
The agreement builds on Orbital UAV’s existing partnership with Insitu and increases the scope, scale and term of work outlined in the original LTA, signed in December 2016.
"Orbital UAV’s Modular Propulsion Solution offers the customer improved production lead times, greater volume flexibility, tailored performance applications and guaranteed quality across the range due to the core common components that form the basis of the modularised approach," Alder said.
Orbital UAV is currently working closely with Insitu during the development phase, with delivery of the first units under the expanded LTA due in Q1 2019. Not only does the LTA cover the delivery of Orbital UAV’s revolutionary Modular Propulsion Solution, it also recognises the win of two additional multi-source awards for the manufacture and assembly of Insitu designed engines.
The two Insitu in-house designed engines, for use in its Integrator and ScanEagle aircrafts, will be assembled, tested and shipped to Insitu from Orbital UAV’s purpose built US facility. The significantly increased product and service offering to Insitu, outlined in the LTA, recognises the continued growth of the tactical unmanned aerial vehicle market and Orbital UAV’s ability to keep pace with that growing demand.