Both aircraft received voice notification of the approximate location of each other, however the National Transportation Safety Board determined that the probable cause of the crash was the failure of the 727 to maintain visual separation with other air traffic.

One of those killed in the crash is a friend of Dr. Gerard ("Jerry") O'Neill.

In September, Dr. O'Neill files a patent for a "Satellite-Based Vehicle Position Determining System." Called Triad, it is based on the use of three satellites to provide coverage to North America. It is eventually granted U.S. Patent 4,359,733 in 1982.

Spread spectrum is a term applied to communications systems that spread radio frequency energy over a wide bandwidth by means of an auxiliary spreading code. The spreading of the bandwidth can be accomplished in many different ways and the systems are usually classified by the type of spreading technique which they employ. They are commonly referred to as: direct sequence (or pseudonoise), frequency hopping, time hopping, pulsed FM (or chirp) and hybrid systems. The spreading or dilution of the energy in spread spectrum systems over a wide bandwidth results in several possible advantages: short range interference-free overlays on other emissions, resistance to interference from other emissions, and low detectability. While we do not anticipate that spread spectrum will replace other types of modulations, the unique characteristics of spread spectrum offer important options for the communications system designer.

Application is made to the FCC in April for a license to construct the Global Satellite System (GSS). The system called for three geosynchronous satellites, located at 70° W, 100° W, and 130° to cover the continental United States and adjoining waters. The application indicated GSS would be able to locate an individual $200 transceiver as well as carry short (36-character) messages.

In November Geostar demonstrates a prototype system in the Sierra mountains of California using mountaintop pseudolite repeaters.

Dr. O'Neill is interviewed for OMNI magazine.

The following What's News appeared in the September issue of Radio-Electronics magazine:

Satellite services for individuals?

Geostar Corp of Princeton, NJ, proposes a satellite-communications system that would permit persons to send messages via satellite, using devices no bigger than pocket pagers. The system will locate the exact position of the sender, and handle messages of up to 36 characters.

In its application to the FCC, Geostar states that a person confronted by a mugger could press a single button on his communicator. That would send out a signal that would go to three satellites in geostationary orbit over the Equator, and from them back to a computer on Earth. The computer would determine instantly the exact location of the sender by noting the difference in the time it takes for signals to reach the computer from the different satellites. It would then notify the nearest police car or station.

The system would also be valuable to hunters and others lost in the woods, and would be of great value to trucking companies, who would make large savings if they could determine the location of - and communicate with - their trucks at all times.

The proposal has not found favor in all quarters. The cellular radio services - some of whose alloted frequencies Geostar proposes to use - are particularly unhappy. AT&T and Motorola Inc., both of whom are heavily involved in cellular radio, have opposed plans of Geostar's type, stating that such systems would waste frequencies in serving remote areas; such frequencies could be used better in urban areas.

An article appeared in the December issue of Data Communications magazine with the following abstract:

A new satellite data network using low speed analog cellular technology will allow users with hand-held transceivers to send and receive text or data from any location without ground-based connections. Aimed at tracking commercial airlines, this network will also be used in business for tracking a local auto or truck fleet. Message transceivers will cost $450. The monthly service charge will be $10 - $30 per month. The project has been developed by Dr. Gerard O'Neill, former physics professor at Princeton who now heads the Geostar Corp. Nearly $2 million have been spent in development; $200 million will be needed for the satellites.

In an interview with COMPUTE! magazine, the Geostar system is described as:

Despite his many other interests, it is the Geostar Corporation which currently occupies most of O'Neill's time and effort. Geostar, a development firm concerned with communication and navigation via satellite, is a perfect blend of O'Neill's farsighted vision and his make-it-work practicality.

The system which O'Neill and his colleagues are developing could revolutionize how we track and monitor aircraft and how we communicate with one another. Initially, the proposed system would have three satellites in geosynchronous orbit over North America. The Geostar central computer facility would use the satellites to route tracking and communication data almost instantaneously for everything from commercial airlines to trucking companies, taxi services, police departments, and even individuals. The key to the system will be a hand-held transceiver which can send and receive messages through the Geostar network.

During the interview, he remarked that an airplane thousands of feet above Princeton was in the process, at that moment, of testing the Geostar system.

The interview also contained the following exchanges:

COMPUTE!: There are predictions that by 1988 some 50 million homes in the U.S. will have personal computers. In what ways do you see this increased awareness of computers affecting America's technological edge in the world?

O'Neill: I think it will help a lot. It's already true, just because of the accident that we work on an alphabet and the Japanese work, of course, with a character-based system, that we as a people are far more familiar with keyboards than they are. Young Americans growing up nowadays, working with personal computers, are much more familiar with keyboards, much less scared of them, than the older generation.

Geostar is a digital system, a keyboard-type system. It's not a voice system. It could be connected to a personal computer anytime. The message transfer capability is entirely consistent with the kind of telecommunications that you like to carry out with your personal computer, from a portable computer. And, of course, by 1987, today's three or four pound computers that fit in a briefcase are probably going to be shrunk down to a quarter of an inch thick. You can carry those along with a Geostar transceiver, and be in instant touch with anywhere.

COMPUTE!: You have already completed mountaintop and airplane emulations of the Geostar satellite functions. What's the timetable for the actual satellite?

O'Neill: So far, the company has met all of its milestones. We are looking to begin service to the entire continental United States in 1987.

One of the most critical items for that is the issuance by the Federal Communications Commission of what's called a "notice of proposed rule-making," which would allocate the spectra for the Geostar service. And that is going very well. There's a very strong possibility that something important will have happened in that area even before your magazine comes out.

The development of the transceivers actually takes just about as long as the development time for the satellites themselves. It's a different kind of technical task, but the time scales are about the same.

COMPUTE!: What types of services will Geostar provide?

O'Neill: In aviation, the kinds of services that would be provided would be, for example, positioning, very accurately.on the order of meters. We can technically provide what's called radio location, which means feeding back the location of a vehicle or an aircraft to a fleet dispatch headquarters. We can provide for aircraft terrain avoidance, because we will have the stored terrain map. So if we see an aircraft heading toward a TV tower or a mountain, we will be feeding warnings to the pilot at the time.

There would be, of course, a two-way digital message service, all provided through the same device. And you could send a message from any transceiver to any other transceiver with a typical delay of about six-tenths of a second. And lastly, it is also an emergency warning system, because the ground station computer will be tracking aircraft. And if you see an aircraft which is heading toward a collision with terrain, first of all, you'll be sending warnings, automatically generated by the computer, and if the aircraft does crash, you will recognize the fact from several confirming sources. And that's important, because the so-called emergency locating transmitters (ELT) that are now federally mandated and carried by aircraft have a horrendous false alarm rate.approximately 98 percent of all ELT firings are false alarms.

COMPUTE!: How would Geostar have an impact on aviation?

O'Neill: The way that Geostar would affect aviation is sort of generically the same way that it would affect a number of other situations in life and affairs. The difference is that in aviation, all the needs come together in one place. The fundamental thing is that the Geostar transceiver is a very light, simple, inexpensive thing, which in effect can run on double-A cells. It's a goal which the manufacturers regard as not at all impossible.

In August the FCC officially completed the rule-making process for the RDSS frequencies. They grant three licenses -- one to Geostar, one to MCCA Radiodetermination Corporation, and one to McCaw Space Technologies, Inc.

Eight transportation companies trial more than 100 user terminals, including Mayflower Transit.

Geostar moves their corporate headquarters and processing center from Princeton, New Jersey to K Street in downtown Washington, D.C.

Geostar begins commercial operation using Spacenet-3, with the capability of serving upwards of 40,000 users. (This was known internally as System 2.)

Users transmit a direct-sequence spread spectrum burst at 1618.25 MHz. The burst has an 8 MHz chip rate and a 15.6 kHz data rate. User terminals transmit their position, derived from an on-board LORAN-C receiver, to Geostar Central for delivery to the customer.

A return link at 2491.75 MHz is in the planning stages, but for now the Geostar service is one-way only.

Geostar acquires an 11.5 percent stake in Locstar, a consortium made up of European companies and government entities including British Aerospace and Alcatel. The consortium plans to provide RDSS in Europe, the Mideast and North Africa.

European patent EP 0174540 is granted to Geostar Corporation.

In November, San Diego-based Qualcomm, Inc. begins offering their two-way OmniTRACS mobile communications service via Ku-band satellite (two transponders on-board GSTAR-1). Qualcomm had purchased a smaller company called Omninet that had developed the system. The FCC granted Qualcomm an STA (Special Temporary Authority) in September for 2,000 terminals.

A space industry survey conducted by the U.S. Department of Commerce forecast worldwide annual revenues from RDSS systems were expected to reach $150 million to $200 million by 1992, and total $1 billion or more in 1995. Part of the increase in revenues is attributed to production economies of scale for RDSS terminals, with user equipment declining in price from about $4000 to less than $500. These estimates were obtained from suppliers and were not independent government forecasts.

The Geostar forecast indicated costs declining from $3000 for first generation terminals to less than $500 in mass production.

In October Geostar begins offering two-way service by transmitting an "outbound" signal (from the central hub out to mobile terminals) between 3700 and 4200 MHz (C-band). (This was known internally as System 2C.) Although the C-band frequencies were originally allocated for Fixed Satellite Service (FSS), the FCC allowed mobile operation in the band due to a lack of S-band satellite capacity in the allocated RDSS band (2483.5 to 2500 MHz).

Equipment is built by Hughes Network Systems (L-band transmitter), Kenwood Corporation (C-band receiver) and Sony Corporation (L-band transmitter).

A contemporaneous description of the planned Geostar positioning service is described thusly:

In the RDSS system, a continuous outbound signal is transmitted to provide time reference marks and an outbound time division multiplex data stream. To determine the position of a mobile unit, the mobile unit retransmits one of the time reference marks, adding its unique identification code, through two or more geosynchronous RDSS satellites. The position of the mobile unit is calculated at the central earth station from the round trip propagation times through three satellites, or by the round trip propagation times through two satellites and altitude information obtained from a digitized terrain map or on-board altimeter. The relative positioning accuracy of the RDSS system is less than ten meters and the absolute ranging accuracy is under fifty meters.

In April, a secure, handheld satellite transmitter prototype built by a division of Motorola (now part of General Dynamics) is demonstrated.

In July, Geostar is granted U.S. patent 4,943,974 for Detection of burst signal transmissions. The Geostar inbound (transceiver to ground station "hub") transmission was a direct sequence spread spectrum burst which consisted of an acquisition aid ("preamble") and a payload. The acquisition aid was a configurable sequence of pseudo-noise (PN) chips which allowed a hub burst receiver to detect the transmission. The payload contained convolutionally encoded user data.

The final communications system of the three to be discussed is the Newcomb Satellite system. This is a geostationary satellite system using the RDSS band (1608.1626 MHz) and is a successor to the defunct Geostar system.

4.3.1 Newcomb System Operation.

The shipboard equipment consisted of a Newcomb CP-1 direct sequence spread spectrum (DSSS) satellite transmitter with integrated GPS receiver. The same radiobeacon receiver used in the previous two systems was used here to provide differential corrections to the GPS receiver internal to the Newcomb CP-1. The CP-1 was connected to a small, flat Lband antenna and a very small, flat GPS antenna.

The ADS data was generated by the internal GPS receiver and then automatically transmitted by the CP-1 as a data packet every 10 seconds. The Newcomb CP-1 transmissions were relayed by a geostationary satellite (GTE Spacenet III) and received at the Mobile Datacomm (MDC) satellite earth station in Clarksburg, MD where they were placed into the R & D Center mailbox on the MDC computer system. A Link Control Computer at the VTS Gateway was connected to the MDC computer either via modem and the PSTN or via Internet and pulled data reports out of the R & D Center mailbox in real-time. This information flow is illustrated in Figure 4-3.

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The analysis of the data showed the system to work very well. Each data packet transmitted was sequentially numbered by the CP-1. Thus it was possible to measure the percentage of packets making it to the VTS Gateway. Overall, the figure was about 96%. The actual system performance was better than this though. It was discovered that the .omnidirectional. antenna had two nulls in the radiation pattern. Further testing and analysis showed that packets were received 99.9% of the time except when operating in the pattern nulls.

This system has the largest capacity of the three tested. Due to the extremely short transmissions and the nature of spread spectrum modulation a very large number of users can be supported in this bandwidth (>100,000). The real limit on the number of users is the processing power of the Earth Station. Currently this is around 20 transmissions per minute according to MDC, but based on our use of the system, this is underestimating the capability. There is also the future potential to increase capacity by using multiple earth stations, each one with it's own pseudo-noise (PN) code.

4.3.3 Newcomb System Conclusions.

The Newcomb system appears to be a good candidate for ADS based VTS systems. There are many advantages: The system has a high capacity as discussed above, there is room for future expansion by adding new earth stations using different PN codes for the DSSS signal, equipment is small and easily installed, and there is no infrastructure to create or maintain. Furthermore, a single Link Control computer at the VTS Gateway can handle any number of Newcomb transmitter equipped vessels, communications service costs are lower than for cellular, reports are received very quickly, and due to the high capacity of the system mobile units can report in at shorter intervals. Finally, the satellite footprint is CONUS plus 200 miles offshore, so the same system can be used all over the USA without any CG maintained shore installations. The only disadvantages to the system are the cost of the shipboard equipment and the cost of the MDC service which is still fairly expensive although it is less expensive than cellular.

The AV-2 transmit/receive mobile terminal design requirements and product development plans were based on the experience of the founders of Newcomb Communications in the application of the Geostar system to transportation operations on land, sea, and air. As a small start-up company with limited resources and financing, a pragmatic approach was adopted that recognized the limited resources, lack of test equipment, and budget constraints. These constraints, however, were to a large part offset by the knowledge, experience, and close-knit working relationship of the design team.

The report includes an example of how messages are encoded:

Newcomb also provides a description and status of the then-current Mobile Datacom hub:

Newcomb Communications began developing its own Fixed Earth Station (FES) to operate in conjunction with the Newcomb mobile terminals. The FES reception and decoding subsystems were developed and a prototype was demonstrated to the Coast Guard and Army in May of 1993. This demonstration included the ability to detect, decode, and display messages transmitted by a CP-1 unit via the Spacenet III satellite using Geostar PN coding and the Mobile Datacom (MDC) Earth Station (located in Clarksburg, MD). Then, using a different PN code, the same demonstration was given using the Newcomb prototype FES.

Subsequent to this major milestone, the Company established an agreement with Mobile Datacom Corporation (MDC) whereby the Company would use MDC's Earth Station and satellites. This provided the opportunity to focus the Company's engineering resources on the development of the mobile terminal products, while MDC addressed the operation of the satellite and Fixed Earth Station.

The MDC Earth Stations were originally built by COMSAT for the Geostar system in the late 1980's. The technology used for signal acquisition/decode is Surface Acoustic Wave (SAW) delay lines. SAW delay lines were used because Digital Signal Processing (DSP) devices were not yet available. MDC has re-installed this FES/Hub system on the COMSAT campus at Clarksburg, MD. They have also installed a modulator for the outbound (C-band) messaging at a commercial common carrier earth station located in Carteret, NJ. The facility is connected to the MDC Hub by a leased telephone line.

Comsat was a Geostar creditor and had acquired much of Geostar's equipment and technology from the bankruptcy court. This included the RDSS hub and computers as well as an inventory of Hughes-built mobile L-band transmitters and Kenwood-built C-band mobile receivers.

This effectively reinstituted Geostar's service.

As with the Newcomb license, this authorization was also set to expire when the first "Big LEO" began to operate. Motorola's Iridium satellite network was the primary concern.

The system was publicly described as follows:

Inbound

• The transmitter fires a direct sequence spread spectrum signal at 1.6 GHz (L Band) lasting no longer than 80 milliseconds.
• This signal is received by a geostationary satellite with L band capability (Spacenet 3R) and transponded to the ground station at Ku band.
• The signal is acquired and decoded at the ground station by one of two hub units. The decoded packet is then delivered to a pair of Hewlett-Packard 9000 series computers (known internally as "Ren" and "Stimpy") for further processing and delivery to the customer.

Outbound

• A packet destined for a mobile unit is uplinked to a geostationary C band satellite (Comstar D4). The mobile receiver is locked to the C band carrier and demodulates incoming packets in a manner similar to the inbound path.

Features and Benefits

• Transmissions have superior LPI/D (Low Probability of Interception/Detection) characteristics, making them an excellent choice for clandestine messaging in a hostile environment.
• Inbound and Outbound channels are available to all units at all times, allowing for instantaneous two-way messaging.

Mobile Datacom begins work on a vehicle tracking and messaging system for the United States Army. This effort will become the Movement Tracking System, a $419 million contract awarded to the company in 1999. Preliminary equipment and software is tested at Fort Hood, Texas and demonstrated at the US Army's National Training Center (NTC) at Fort Irwin, California, achieving some of the highest asset utilization scores ever recorded.

Also in September, Mobile Datacom completes an Advanced Concepts and Technology (ACT) II Program for the US Army Combined Arms Support Command (CASCOM) after a final convoy demonstration from Fort Stewart, Georgia to the Port of Savannah.

The ACT II demonstration integrates a Radio Frequency Identification (RFID) interrogator, a SAE J1708/J1587 Vehicle Data Bus interface and a ruggedized laptop computer with a GPS-equipped satellite transceiver on a mobile military platform. The computer provides a moving map display and a two-way text messaging capability in a software program called MTS Messenger. Data transmitted from each platform is collected at a satellite Earth Station in Ellicott City, Maryland and made available on a series of web pages. Position and status information collected from each vehicle, processed in a software application called BField (short for battlefield), is broadcast back out via satellite to all vehicles.

Associated with the development of its next generation system are two major enhancements to the Mobile Datacom Network:

1. Multi-platform operation
2. Virtual Private Network Services

Through funding provided by a recently awarded contract from the U.S. Government's Defense Advanced Research Project Agency (DARPA), as supplemented by investor funding, Mobile Datacom will develop its next generation system to be multi-platform capable. This will make Mobile Datacom the only service provider in the business able to offer customers the choice of which satellite system to use with the same hardware/software combination. This will be accomplished by designing the MDC spacelink and physical protocol layers to accommodate other satellite relays as they become available while leaving external interfaces to the mobile terminal and the satellite gateway the same. Systems through which the Mobile Datacom Network will be able to operate include American Mobile Satellite Corporation (AMSC) (available today), TMI of Canada (available today), Globalstar, Odyssey, and other systems in which the satellite functions as a bent pipe relay, permitting the transmitted signal to pass through the satellite without any processing.

Since many customers and VARs want their own private networks, the Company will provide a wide range of virtual private network services. The Company's network architecture allows it to offer customers their own piece of the system, to manage as they choose.

In April, technical work begins on the design of the next generation satellite transceiver, later named the MT-2010.

In September, the U.S. Army Training and Doctrine Command (TRADOC) approved the operational requirements for MTS. Soon after the Program Executive Office (PEO) for Standard Army Management Information Systems (later the PEO for Enterprise Information Systems) received program management responsibility for MTS.

In October, Comtech Telecommunications of Melville, New York, purchases Mobile Datacom.

In April, MTS passes operational testing with the 180th Transportation Battalion, 13th Corps Support Command (COSCOM), at Fort Hood, Texas.

[The article] is very interesting and confirms my view of what the future holds for systems such as Comtech's. To our very great credit, the satellite system, and the operating software and applications worked. Now, the warfighters have a taste for what is available, and a very clear idea of shortcomings. That is to say, they see what is being done, and now they understand how it can work for them, were it to have been designed with their specific needs in mind. While this always comes down to questions of time and money, there is going to be a big push to put in place the systems that work the way the warfighter wants them to work, since now it's only a matter of, as I indicated, time and money. Time isn't a factor, since they can use what they've got in the interim, and money, well, there's a lot going to be spent, so why not on bandwidth and software.

The challenge comes from the possibility that the future system will not be a derivative of the exisiting system, but the result of a totally new development, like JTRS [Joint Tactical Radio System]. That could come out of NG [Northrop-Grumman], or GD [General Dynamics], or any of the large (or small) systems integrators. Comtech will need to get on board, somehow, or the train will leave them at the station. [This] article is the first I've seen, and undoubtedly not the last, reflecting the real needs. And those needs will be met. The Army isn't going to grow, so it's the systems that will have to maintain the effectiveness of the small fighting force. Great selling point if you can make the connection.

J. Preston Windus, Jr., a Comtech corporate financial officer, takes over management of the Mobile Datacom division.

In September, installation of MT-2011 satellite transceivers NATO vehicles in Kosovo begins. These units will provide messaging and location data for peacekeeping operations.

Also in September, a thesis from a Naval Postgraduate School student discussing tracking technologies contains this:

Position location is provided by the Globalstar constellation rather via the GPS satellite system. The satellites calculate position using radio frequency (RF) time difference of arrival (TDOA), frequency difference of arrival, angle of arrival or a combination of the geolocation methodologies. Accuracy of the positions is up to 10 km.

Incidentally, this type of positional technology is similar to Radio Determination Satellite Service (RDSS) created by GEOSTAR in the 1980s and currently owned by Comtech Mobile Data Corporation (CMDC). RDSS establishes geolocation by radio frequency TDOA using two or more satellites in geosynchronous orbit. CMDC currently uses GPS along with the two-way communication capability of RDSS to provide location data in its movement tracking system service, which is enabled by Inmarsat constellation. Although GPS technology seems to be the favorite for geolocation, RDSS is worth investigating.

"Dan Wood has the ideal background and skill set to take over the reins from Pres Windus at Comtech Mobile Datacom. His strong operations and finance experience is very similar to that of Pres."

Like Mr. Windus, his background is financial rather than technical and is lacking in any significant mobile satellite industry experience.

[C]ommercial L-band bandwidth, network management services, engineering design and development services, and L-band satellite transceivers for Fiscal Year 2007 (FY-07) and beyond supporting US Army FBCB2 BFT operations Worldwide.

The notice includes the following request:

Optional - A source of supply for engineering services capable of reverse engineering the firmware contained within the CMDC MT-2011 and CMDC hub and packet switch equipment to provide a more secure and more capable waveform to support FBCB2 BFT operations. NOTE: The Government does not own the design rights to the CMDC MT-2011 transceiver, CMDC hub equipment, or CMDC packet switch, nor does it have any drawings or documentation that describes the design and operation of this equipment. The Government does own CMDC MT-2011 transceivers and CMDC packet switch equipment that can be provided for purposes of reverse engineering.

Also in May, Comtech corporate tells the Government that it had not agreed to allow CMDC to license any proprietary information to the Government at any price for use in future competitive procurements. At time, CMDC estimated that the value of their ongoing business operations, and the potential risks associated with releasing the proprietary data to competitors in the industry would be valued (if a value were to be assigned) in excess of $100 million.

In August, the Federal Communications Commission (FCC) issues a Letter of Inquiry ("LOI") regarding whether CMDC violated section 301 of the Communications Act of 1934 and sections 25.102, 25.117, 25.136(d) and 25.276(a) of the Commission's Rules by modifying and operating its MET [Mobile Earth Terminal] system without appropriate authorization.

The Enforcement Bureau ("Bureau") and Comtech Mobile Datacom Corporation ("CMDC"), by their authorized representatives, hereby enter into this Consent Decree for the purpose of terminating the Bureau's investigation into whether CMDC violated section 301 of the Communications Act of 1934, as amended ("Act") and sections 25.102, 25.117, 25.136(d) and 25.276(a) of the Commission's Rules by modifying and operating its mobile earth terminal ("MET") system without appropriate authorization.

As part of the consent decree, CMDC makes a "voluntary" contribution to the United States Treasury in the amount of $25,000 and is required to make regular reports regarding technical parameters of system operation.

Respondent proposes the adoption of the Battle Command Product Line (BCPL) Logistics software variant, Movement Tracking System. Enhanced Software (MTS-ES), (currently undergoing test), to stand up a new NOC [Network Operations Center] to host MTS running MTS-ES software, to ramp up the system as quickly as possible, and to undergo a transition period from legacy NOC to the new proposed NOC. Separate and apart from this proposal, the current plan is for MTS to adopt MTS-ES as its future software (assuming successful testing and user acceptance). However current schedules do not project the availability of MTS-ES until second quarter FY2011. The current MTS contract ends July 2010 which is 6 plus months before MTS-ES is projected to be available.
[...]
With successful testing, acceptance, and availability of this software, MTS will no longer need to sole-source CMDC's proprietary components or require a prime contractor to use CMDC as its sub-contractor. Once the BCPL software is released, it will allow for MTS to have open standards, and this is expected to significantly increase competition for future contracts.

In April, the FBCB2 BFT Project Manager issues a Market Survey seeking sources for:

L-band bandwidth, network management services, engineering design and development services, and the procurement of BFT-2 L-band satellite transceivers, during the years 2010 - 2015 and beyond supporting PM FBCB2 BFT operations worldwide.

The PM seeks to procure the hardware and acquire the services, using multiple awards of Indefinite Delivery Indefinite Quantity (IDIQ) contracts.
...
The total dollar value of each contract would be $477M.

Starting in 2010 thru 2015, the Army wants to replace the current BFT-1 CMDC equipment with improved equipment that provides an order of magnitude improvement in data throughput.

In September, CMDC repeats to the Government that the value of its ongoing business operations, the Government-wide application of Government Purpose License Rights, and the potential risks associated with releasing the proprietary data to unlimited industry competitors, would necessitate a minimum license price of $125 million with any data, documentation or other information provided in an "as is" condition with no warranties or guarantees associated with the license.

The Government immediately determines that these terms and conditions are unacceptable.

Also in July, a Memorandum of Understanding (MOU) is signed that places the Movement Tracking System (MTS) office under PEO C3T, and thus under FBCB2.

Also in May, Comtech was notified that their BFT-1 contract was selected for a post award audit by the Defense Contract Audit Agency ("DCAA"). A post award audit (sometimes referred to as a Truth in Negotiations Act or "TINA" audit) generally focuses on whether the contractor disclosed current, accurate and complete cost or pricing data in the contract negotiation process pursuant to Federal Acquisition Regulations ("FAR").

At the end of June, after multiple rounds of layoffs, Comtech Mobile Datacom ceases providing commercial satellite service over North America.

For the fiscal year ending July 31, payments from the BFT-1 and MTS contracts accounted for 40 percent of Comtech corporate revenue. Since 1999, Comtech delivered about 139,000 BFT-1 mobile satellite transceivers and 47,000 MTS units.

In August, Comtech corporate offers to sell the rights to CMDC's intellectual property to the Government for $120 million. The Government declines.

With the Army indicating it would contract for satellite capacity directly rather than through Comtech, during a September conference call to investors, Comtech officials indicated they would charge the government a separate fee for the use of the company's intellectual property.

Comtech makes "The GMI Risk List" for October, 2011 with the following analysis from GMI Ratings:

The defense industry in general poses social concerns for some investors. At defense contractor Comtech, the average director tenure is 18 years and only one director is under seventy; the board also lacks diversity with regard to gender. High average tenures and ages, taken together, suggest entrenchment planning concerns. Remuneration decisions are only loosely linked to performance, which has lagged peers and the S&P 500 for the last five years. Finally, a number of accounting flags suggest that expenses may be understated or possibly capitalized.

Also in October, after a period of unexplained absence, Dan Wood resigns as President of Comtech Mobile Datacom. Management of the division is to be handled by Comtech AeroAstro, a sister division located in Ashburn, Virginia.

According to a Schedule 14A (Proxy Statement) filed in November 2010 with the Securities and Exchange Commission (SEC), in addition to his $314,140 base salary,

Mr. Wood received a 2010 non-equity incentive award of $750,000 which was primarily based on the level of fiscal 2010 pre-tax profit achieved for the business operations for which he was responsible and the ECC's [Executive Compensation Committee] evaluation of his overall performance.

The ECC considered the fact that the subsidiary Mr. Wood supervises was not selected as the program manager and vendor for the Blue Force Tracking 2 ("BFT-2") program because a third party vendor bid a price that was 50% lower than the price submitted by Mr. Wood's subsidiary. Ultimately, as a result of the expected future decline in sales and profits related to BFT-2, the Company recorded a goodwill impairment charge in its fiscal 2010 results.

Mr. Wood was also awarded 20,000 shares of CMTL stock in June 2010, with an estimated value of $216,354. His total reported compensation for the 2010 fiscal year was $1,451,726. In addition, at the time of his departure Mr. Wood sold 42,000 shares of CMTL, netting $1,332,240.

Later in October, Comtech corporate tersely announces his departure and names his replacement as Paul Lithgow. From the press release, Fred Kornberg, Chairman and Chief Executive Officer of Comtech Telecommunications Corp., said:

"As President of both CMDC and AeroAstro, Paul is the perfect candidate to further reposition our mobile data communications segment. I believe that Paul's experience in establishing AeroAstro as a leader in the emerging microsatellites industry will be beneficial as we continue to adjust our mobile data communication segment's business strategy."

"I believe that the people and technology at CMDC are second to none and I am confident that Paul and the team will position our mobile data communications segment for future growth and continued profitability."

Fiscal 1999 - Mobile Datacom - generated over $1.5 billion of revenue over 10 years

After 10 Years of Rapid Growth, Revenues in Fiscal 2012 are Expected to Materially Decline as MTS & BFT-1 Programs Go Into Sustainment Mode

The presentation also admits the transition (although not referring to it as such) of the Movement Tracking System (MTS) Network Operations Center (NOC) from Comtech's Germantown facility to the FBCB2 BGN at Aberdeen Proving Grounds.

Subsequent to October 31, 2011, we received an order for $3.8 million to support the integration and establishment of an MTS network operations center within the existing BFT facilities by July 9, 2012.

Through January 31, 2012, Comtech received $378,009,000 in total orders under their BFT-1 contract.

During a March 9 investor's conference call, Chairman Fred Kornberg repeats his demand for payment from the Army and further maintains that even if the Army moves to other vendors for BFT-2 and satellite service, Comtech will still demand payment for the use of their "intellectual property."

At the end of March, with a 31 March contract expiration looming, the Army agrees to a service extension with Comtech. The contract includes a list of intellectual property claims, for which Comtech will be paid $10 million each year. From an April 2 press release:

The specific terms and conditions related to the IP license are covered by a separate licensing agreement which provides for an initial licensing period that begins April 1, 2012 and ends March 31, 2013 and provides for annual renewals, at the U.S. government's option, for up to a five-year period, after which time the U.S. government will have a limited non-exclusive right to use Comtech's IP for no additional IP licensing fee.

The first order under this contract established the IP license fee as $10.0 million for the initial period. This amount is separate from any services, management or operations costs.

In April, BFT-2 equipment from ViaSat begins official fielding, marking the start of a planned replacement program of BFT-1.

In July, Comtech shuts down the AeroAstro division and lays off about 50 employees. In October some of the assets of AeroAstro are sold to San Diego-based Space Micro.

In a Fourth Quarter investor presentation, Comtech again highlights their "Strong Track Record of Successful Acquisitions" with the inclusion of the line "Fiscal 1999 - Mobile Datacom - generated over $1.5 billion of revenue over 10 years."

In a November proxy statement (Schedule 14A), Comtech acknowledges some of the financial effects of losing the BFT-2 competition:

Like it did in fiscal 2011, our ECC decided to award lower total fiscal 2012 compensation to our NEOs (including our CEO), in part, as a result of the continuing impact to our business of the July 2010 decision by the U.S. Army to award the Blue-Force Tracking-2 ("BFT-2") contract to a competitor, and the U.S. Army's related decision to combine its Movement Tracking System ("MTS") program with the BFT program. While the U.S. Army's decisions did not have an immediate impact on our financial results, the July 2010 announcement of the loss of the BFT-2 contract to a competitor resulted in a 31.9% one-day drop in our stock price (which has not yet been fully recovered) and its loss will negatively impact our comparative financial results for several years.

According to a filing made by Comtech to the Securities and Exchange Commission (SEC), in December Comtech is informed that a preliminary report by the government auditor (the audit conducted by the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency) concluded that Comtech's pricing methods under the BFT-1 contract were unacceptable, and that the company would be asked to reimburse $11.8 million plus $2.3 million in interest.