Kraken Robotic Systems Inc., won a prestigious navy bid for a new sonar systems for an unnamed international navy. The navy customer has notified Kraken that it intends to enter into a contract with Kraken after the expiration of a standstill period.
This was a competitive bid process for upgrades of the customer's mine-hunting equipment. Kraken was one of four companies whose offers were received and evaluated and all four bidders have been notified of the result. Under the program, Kraken will deliver the KATFISH towed synthetic aperture sonar as well as autonomous launch and recovery systems (ALARS) to the customer. The total contract value is expected to be approximately C$35-$40 million, with the majority of that received over a 2 year equipment acquisition phase. Kraken currently expects product margins on this contract to be in line with its historical averages.
Final contract signing with Kraken is subject to several factors including the expiry of the standstill period (October 14, 2019) and Kraken entering into an industrial offset contract with the government business agency. In addition, the contract signing is subject to political approval, including approval by the Finance Committee of the customer's Parliament. Kraken expects to provide additional customer and contract detail in the coming weeks.
The Kraken KATFISH graced the cover of the June 2019 edition of Marine Technology Reporter, the world's largest circulation b2b publication serving the subsea industry. To read the full story visit: https://www.marinetechnologynews.com/magazine/archive/2019