US Firm Wins $110m VSAT Contract in Iraq

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US Firm Wins $110m VSAT Contract in Iraq

The US State Department has approved a possible military sale to Iraq that focuses on improving satellite communications, with an estimated cost of $110 million.

The approval was announced last month and covers the sale of Very Small Aperture Terminals, known as VSATs, along with related equipment and support. The Defense Security Cooperation Agency has already sent the required notice to the US Congress.

According to the State Department, Iraq requested additional VSAT systems, including modems, hubs, and portable satellite units, along with spare parts, training, and technical and logistics support. These new items will be added to an earlier deal that was below the level that required congressional notification.

The original agreement was valued at $46 million and included VSAT equipment, satellite services, spare parts, and training. With the new request added, the total estimated value of the sale now stands at $110 million.

US officials said the deal supports American foreign policy and national security goals by strengthening the security of a key partner in the region. The equipment will help Iraq improve its military communications network, making it easier to manage operations, protect its borders, safeguard energy infrastructure, and enhance overall security.

The State Department noted that Iraq is fully capable of using and integrating this equipment into its armed forces. It also stressed that the sale will not change the military balance in the region.

The main contractor for the deal will be Network Innovations, a company based in Frederick, Maryland. No offset agreements have been proposed at this stage, and any such arrangements would be discussed directly between Iraq and the contractor.

To support the project, two additional US government staff and five contractor representatives will be assigned to Iraq for up to five years. Their role will include technical support, system upgrades, regular programme reviews, and training inside the country.

US officials also confirmed that the sale will not affect US military readiness. They added that the $110 million figure is the highest possible estimate, and the final cost could be lower depending on Iraq’s final needs, budget approval, and the agreements that are eventually signed.