Army rejects Comtech's communications contract bid

The U.S. Army has told Melville defense contractor Comtech Telecommunications Corp. that it has lost its bid to be manager and vendor of a new electronic warfare communications system, the Force XXI Battle Command Brigade and Below, Blue Force Tracking 2.

Comtech Mobile Datacom Corp., a Maryland-based subsidiary, was advised that the contract was given to another company for a "total evaluated price" of $249.9 million, which was about half Comtech's bid.

ViaSat Inc., of Carlsbad, Calif., won the contract to supply the battleground command and control satellite communication system.

Fred Kornberg, president and chief executive of Comtech Telecommunications, said it will appeal the Army decision.

"Given our proven performance during a wartime environment, . . . and our belief that Comtech offers a lower overall program risk to the U.S Army . . . we anticipate protesting the award given to the third party," Kornberg said.

The Maryland subsidiary specializes in "satellite-based packet data communication systems and location and messaging services through the use of advanced communication and network technology."

Comtech's stock closed down 31 cents to $20.99 Thursday.