Cubic Subsidiary Wins U.S. Navy Simulator Support Contracts.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Sept. 5, 2000

The first two simulator support contracts to be awarded by the U.S. Navy under a $250 million Indefinite Delivery/Indefinite Quantity (ID-IQ) program have gone to Cubic Worldwide Technical Services, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB).

The award, valued at close to $10 million, positions the Cubic subsidiary as a major player in the aviation contractor operation and maintenance and services (COMS) arena.

The biggest of the two Cubic contracts, a five-year, $9.5 million agreement, is for F-14 training devices support at Oceana Naval Air Station in Virginia Beach, Va., and Atsugi Naval Air Station, Japan. The Oceana site is the largest aviation COMS facility in the U.S. Winning the award triples Cubic's presence in the aviation community.

Cubic's additional $430,000 contract is for P-3 Orion aircraft contract simulation instruction work to be performed at the Jacksonville Naval Air Station in Florida. The program is part of a Navy plan to transition simulator instruction responsibilities from military to civilian instructors. Cubic will hire fully qualified and certified former active-duty Navy personnel as part of the contract.

"This contract is significant," said Richard Koon, Cubic Worldwide Technical Services president and CEO, "because it puts our company in line for a larger East Coast contract scheduled to begin by early 2002. The Jacksonville business will be rolled into a contract that will cover several eastern sites."

The two contracts were awarded under the Fielded Training Systems Support Program, managed by the Naval Air Warfare Center Training Systems Division in Orlando, Fla., which covers all Navy simulator contracts for the next five years. A select group of vendors is "pre-qualified" to compete for potentially $500 million in work -- including add-on jobs -- over the next decade. This contract cycle gives the Cubic subsidiary its first U.S. Navy ID-IQ win.

The ID-IQ process shortens the traditional request for proposal process from many months to a few weeks and makes available a variety of competent, fully qualified vendors to bid on government work instead of requiring the procuring agency to initiate the normal lengthy procurement process.

CWTS supports, installs, operates and maintains military aviation, surface and subsurface training systems, and ground and air combat ranges at 26 U.S. sites and in 7 foreign countries. The company also contracts with electronics and commercial customers, providing operation and maintenance services for a variety of training systems, including firefighter training centers and electronic warfare training ranges.