Chemring's US Arm Books $99M DOD Contract for Maritime Biological Detection Tech

The Department of Defense has awarded the U.S. business arm of British technology company Chemring a potential $99 million sole-source contract to produce technology that would detect biological warfare agents in maritime environments.

Chemring Sensors and Electronic Systems will deliver the Enhanced Maritime Biological Detection system to the DOD under the full-rate production contract, which has an initial delivery order valued at $16 million, Chemring said Tuesday as the company marks the end of its 2021 financial year.

Work will take place in Charlotte, North Carolina, through December 2027. CSES expects initial deliveries to commence in fiscal years 2022 and 2023.

Additionally, Chemring’s Australia-based subsidiary secured a $20 million modification to a $22 million contract to provide MJU-68/B infrared countermeasures for the F-35 aircraft of the U.S. Navy and Air Force.

The contract, announced in September, also includes sales to Japan, Norway, the Netherlands and Italy.

The countermeasure technology is designed to provide a layer of defense against heat-seeking and radar-controlled missiles.

Chemring expects its year-end net debt to decrease to $36.8 million from last year’s $65.7 million. The company will report its financial results for fiscal year 2021 on Dec. 14.

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