The Defense Logistics Agency will be exercising the first of two one-year extension options under the DLA Enhanced Small Arms Protective Inserts body armor contract with U.K.-based Avon Protection Systems to supply body armor plates from its ballistic protection business, Ceradyne.
The company said Friday the initial option extends the contract to September 2022 and activates a minimum order value of $19 million for the option year.
“This contract extension demonstrates our ongoing position as a leading supplier of body armor to the U.S. armed forces, as well as underpinning our FY22 body armor revenue expectations,” said Paul McDonald, CEO of Avon Protection.
Additionally, McDonald commented that he is pleased with Avon’s progress since December to address product approval delays.
With first article testing underway and progressing as the company has anticipated, formal approval for the DLA ESAPI body armor products is expected to be received during the first quarter of 2022, and initial shipments are to be expected in the second quarter.
Additionally, exercising the extension option will trigger a consequent $3 million of contingent consideration payable to 3M under the terms of Avon’s acquisition of Ceradyne, bringing the total contingent consideration payable to $7 million.
