GeoEye, DigitalGlobe gain $7.3B in NGA contracts

Companies will supply agency with satellite services

GeoEye Imagery Collections Systems Inc. and DigitalGlobe Inc. have won 10-year contracts to provide a range of satellite services to the National Geospatial-Intelligence Agency (NGA) that could be worth as much as $7.35 billion combined.

The contracts are part of the NGA’s EnhancedView commercial imagery program.

GeoEye Imagery Collections Systems will provide a range of satellite services for the Defense Department’s NGA that could be worth as much as $3.8 billion if all options are exercised.

GeoEye, whose satellite imagery is already used by the DOD and intelligence agencies, will provide both products and services to the NGA, the company said in a short announcement that gave no further contract details.

The Dulles, Va., company reported $804 million in revenue in its most recent quarter, up nearly 80 percent from a year ago, as its government and commercial imaging business grows.

DigitalGlobe Inc., of Longmont, Colo., was awarded a similar contract that could be worth as much as $3.5 billion.

The DigitalGlobe deal includes a service agreement of $2.8 billion to provide satellite images as well as $750 million for other products and infrastructure improvements, according to a report in the Wall Street Journal. http://online.wsj.com/article/BT-CO-20100809-716515.html

The DigitalGlobe contract begins in September, with the company receiving $20.8 million a month for the first four years and $25 million a month in the remaining six years of the contract, the newspaper said.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

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