Singapore -- ST Engineering's US subsidiary, VT Miltope, announced that it has won a US$500m contract (about S$710m) to supply the At Platform Automatic Test Systems (APATS) Maintenance Support Device - Version 3 (MSD-V3) system, comprising rugged laptops, test equipment and instruments, to the US Army.

The five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract was awarded by the Test, Measurement, and Diagnostic Equipment (TMDE) Product Directorate of the US Army. This IDIQ contract allows the US Army the flexibility to acquire items defined in the contract, within stated limits, over the five-year period. Teamed with our subcontractor, Science and Engineering Services, Inc. (SESI), VT Miltope is expected to perform 70% of the programme and SESI the remaining 30%. VT Miltope will supply the MSD-V3, based on the TSC V3-GM45 Rugged Convertible Laptop Computer, the next generation of its TSC-750 computer. The TSC-750M is a militarised laptop designed and qualified to withstand the harshest tactical environment for computer systems and is being used in forward areas under extreme weather and handling conditions.

More than 40,000 of the TSC-750-based MSDs have previously been supplied to the US Army. Many of these systems are already successfully deployed with US troops in active missions. In the five production programme years (2010-2014) of MSD-V3, the US Army may order up to 39,460 MSD-V3 Kits, 12,500 ICE Test Adapter Kits, and peripheral accessory hardware such as PC cards and cables.

The MSD is used by the US Army for at-platform diagnostics and maintenance on its weapon systems, generators, aviation, missile, wheeled and tracked vehicles. It is the Army's standard TMDE for all tactical at-platform maintenance applications. MSD-V3 is a rugged, compact, lightweight, portable general-purpose automatic tester used to verify the operational status of systems, isolate failures and assist in the repair. Additionally, the MSD-V3 facilitates the uploading and verification of software to restore as well as provide new software to weapons.

"The MSD-V3 award affirms VT Miltope's commitment to providing US Army soldiers in the field with robust computing capabilities that work in the toughest tactical environments. MSD-V2 has proven its ability to perform its mission and survive the rigours of multiple deployments without degradation. This award demonstrates VT Miltope's continued support of the US Army in tactical computer systems and logistics as well as our constant commitment to the entire test and diagnostic community." ~ Brigadier General (US Army, Ret) Tom DICKINSON, President and CEO, VT Miltope

The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.