Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) has successfully completed Phase 1 of an EGS Study Contract that demonstrates a path forward to transition the Command and Control System-Consolidated (CCS-C), the Military Satellite Communications (MILSATCOM) Satellite C2 system, into the EGS.
EGS is an enabler for the Air Force's Space Enterprise Vision (SEV), designed to support a sustainable, resilient space architecture that can respond to threats and protect space-based assets. EGS will result in a more resilient, cost-effective ground architecture that is more robust, provides for enhanced space situational awareness (SSA) and will integrate with the Air Force's Enterprise Space Battle Management Command and Control system (BMC2) now being developed. Two other SEV components focus on a new, more resilient space architecture and a more responsive satellite launch capability.
Late in 2016, the Government initiated the EGS study with Kratos on the CCS-C Production and Sustainment contract. This study is a 27-month effort consisting of four phases and is a critical step in the evolution of CCS-C and MILSATCOM in support of EGS. Kratos recently concluded Phase I with a successful demonstration witnessed by over 40 Government personnel/evaluators and has now transitioned to execute Phase 2. The four-phased study is scheduled to conclude in December 2018.
Kratos products used in the EGS, MILSATCOM CCS-C Phase 1 study include EPOCH® IPS for Telemetry and Command, and Webic, Kratos' next-generation web based user interface product.
In addition to EGS, Kratos is actively engaged in developing ground architecture enhancements in support of Department of Defense (DoD) initiatives, including the Wideband Communications Architecture Study (WCAS) contract that will help define the next generation resilient architecture for Wideband Communications as part of the DoD's Analysis of Alternatives study.
As John Monahan, SVP of Kratos SATCOM Products and Federal Solutions, explained that one of the biggest drivers behind the development of EGS is an increasingly ominous space threat environment and the speed with which those threats occur. With the success of the company's recent Phase 1 prototype demo, the government has authorized us to start work on Phase 2. Kratos is making key investments towards the success of EGS, including participation and leadership roles in various EGS working groups and in standards development. Additionally, the company is investing in internal research and development (IR&D) and developing an internal system integration lab (SIL) to further EGS' technical development and deployment.
