Multiyear Auxilium Services Contract Award
Pennant International Group PLC has secured a new multiyear contract with the Canadian government for its Auxilium software suite to support maritime programs within the Department for National Defence. This contract, which includes a five-year framework agreement with options to extend for an additional six years, is estimated to be worth up to C$35 million over the full eleven-year term. The initial five-year term is valued at approximately C$15 million, with fixed prices that incorporate annual inflationary adjustments. This award reinforces Pennant's long-standing relationship with the DND and its position as a key provider of integrated product support solutions.
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Pennant International Group plc (AIM: PEN), the systems support software and training solutions company, is pleased to announce a new contract win within its Software & Services segment.
The Canadian government has awarded a new IPS services contract to Pennant Canada Limited for the use and optimisation of Pennant's Auxilium suite of software to support maritime programmes within the Canadian Department for National Defence ("DND").
Pennant's Auxilium suite brings together - GenS, Analyzer and R4i - into a single, fully integrated solution. Auxilium, and its predecessor applications (OmegaPS), is the software tool of choice for the DND and has been used extensively throughout the department since the early 1990s.
The contract provides a framework agreement for an initial five-year term, with annual options to extend for a further 6 years. The scope of work includes the continuation of existing tasks and incremental growth in revenue generating services.
Whilst not subject to a minimum contract value, at historical rates of DND usage of Pennant IPS services, the initial value of the five-year framework is estimated at C$15 million (at fixed prices which include annual inflationary adjustments) and a value across a fully extended eleven-year term on the same basis of up to approximately C$35 million.
Phil Walker, CEO, commented:
"We are pleased to have secured this new framework contract with the Canadian DND in support of maritime programmes. This award reflects Pennant's strong, long-standing relationship with the DND and supports the investment in the Auxilium suite."
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