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Security, State, Justice and other state and local government customers. We present a TCS TotalCom™ solution opportunity to
customers. From 2006 through early 2014 we provided systems and services under the U.S. Army’s Worldwide Satellite Systems
contract vehicle, including a SwiftLink variation called “SNAP” (Secret / Nonsecure Access Point) and Wireless Point-to-Point Link
systems. In late 2012, we were selected as a prime vendor under two additional, 5-year indefinite delivery, indefinite quantity defense
contract vehicles: the Army’s Global Tactical Advanced Communications Systems (“GTACS”) contract with twenty awardees and a
maximum value of $10 billion, and the Defense Information Systems Agency’s Customs SATCOM Solutions (“CS2”) contract with
eight awardees and a maximum value of $2.6 billion.
We enter into fee-for-service contracts under which revenue is generated based on contract labor billing rates or based on fixed
fees for deliverables. Revenue from integration work which typically accompanies customer purchases of our secure deployable
systems is reported together with the system sales revenue.
Our products and services, typically delivered under multi-year contracts or contract vehicles, include:
Cybersecurity and Other Information Technology Training and Professional Services.
We provide cybersecurity training and
services encompassing all areas of Computer Network Operations which includes: Computer Network Defense, Computer
Network Attack, and Computer Network Exploitation. We develop software tools and database applications related to system
testing, security, engineering, and analysis. We enhance secure network communication and encryption engineering and provide
a wide range of project management, information assurance oversight, and business management. We design, install, and
operate data networks that integrate computing and communications, including systems that provide communications via both
satellite and terrestrial links. We can provide complete network installation services from cabling infrastructure to complex
communications system components. We also provide ongoing network operation and management support services including
telecom expense management under multi-year contracts with government customers.
Integrated Logistics Support (“ILS”) Services.
We provide field and maintenance support of wireless deployable
communication systems including our SwiftLink systems and other vendors’ systems. This includes maintenance services,
training, depot support, product resets, and documentation.
Secure Satellite Teleport Data Landing and Transmission Services.
We own and operate a high-speed satellite
communications teleport in Manassas, Virginia that is connected to the public switched telephone network, and operate two
facilities in Europe for government customers. These facilities provide transport services for IP-based media content consisting
of VoIP, internet, video and messaging data using VSAT satellite technology as part of our communication solutions for our
customers. We provide end-to-end connectivity between users of our deployed SwiftLink systems in remote locations back to
our teleport and eventually onto customers’ back-office desktops and cell phones. We purchase space segment (satellite airtime)
and resell it to customers using our facilities. TCS also maintains two satellite earth stations on Pacific islands.
Communication Systems and Components.
Our SwiftLink products provide secure voice, video and data communications via
ruggedized modules that can be rapidly deployed in harsh, remote areas for satellite-based or point-to-point communications,
where other means of reliable communication may not be available. Our deployable Very Small Aperture Terminal (“VSAT”)
multi-band terminals provide access to a wide array of commercial and military satellites that make broadband capabilities
available on a global basis. The tropo version of this technology can achieve significant cost efficiency by enabling beyond-line-
of-sight communication by bouncing radio signals off the lowest portion of the Earth’s atmosphere rather than via satellite
transponders. Most of our SwiftLink systems can be deployed by a single person in less than twenty minutes, creating critical
communication channels from any worldwide location. Uses include critical communications for DoD warfighters in command
and control headquarters, emergency response, news reporting, public safety, drilling and mining operations, field surveys and
other activities that require remote capabilities for voice, video, and data transmission. We also design, produce and sell
communication system components as well as electronic components and solid state drives for aerospace applications.
Government Segment Market Opportunities and Strategy.
Our strategy is to be a leading secure wireless communications solution
vendor by building scale and a continuum of related technical capabilities. We have a history as a provider of deployable, tactical
systems and related field support and maintenance, cybersecurity training and professional service work, and as an operator of fixed
teleports, and reseller of space segment. Extensions of these competencies include professional service areas such as cyber-security
training. We have developed partner relationships with large, global technology companies engaged in systems integration, handheld
devices, and integrated circuits. We intend to selectively consider acquisitions of companies and technologies in order to increase the
scale and scope of our operations, market presence, products, services and customer base. We plan to provide communications
technology solutions to a broadening body of U.S. federal, state and local, and international government customers.
Trends and our strategy for our Government Segment products and services are:
Expanding Need for Secure, Deployable, Wireless Communication Solutions.
Technology to avoid interception or jamming of
wireless communications is a growing need for many network operations. TCS has sold deployable communication system
terminals to federal government customers for more than a decade. We expect that similar terminals will be provided more
broadly in the U.S. military. We are continuing to enhance our deployable communication systems product line to enable
