Further positive news for Avon Protection comes from the award of the M53A1 mask and powered air systems sole source contract by the US Department of Defense. It is another IDIQ (indefinite delivery/indefinite quantity) contract with a maximum value of $246m over its seven-year term with a five-year base period and two one-year extension periods. The first order is expected shortly. As with the M69 aircrew mask systems contract award in January, the latest success had already been incorporated in guidance so does not affect forecasts. However, it does further underpin expectations for the division over the next five years.
The framework contract includes the mask systems related accessories and spares as well additional Avon Protection products including the ST54 self contained breathing apparatus (SCBA). Once the first order has been secured, deliveries are expected to commence in H219. The award also demonstrates Avon’s innovations and technology credentials.
As per the AGM statement, the strong performance by Avon Protection, particularly in terms of its military activities, is helping to offset more challenging conditions for milkrite | InterPuls in dairy markets. Management continues to progress other global mask opportunities including negotiations with the Department of Defense (DOD) with regards to the follow-on sustainment contract for M50 masks.