May 2023 – KWESST Micro Systems Inc. has received notification of contract award under a joint venture with two other defence industry partners, to perform software systems engineering work for the Canadian Department of National Defence. The contract component for KWESST is valued at a minimum of $4M annually for a five-year initial contract followed by five, one-year options.

Under the terms of the joint venture, partners are combining their respective expertise in the Canadian and international defence Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) domain to offer specialized software development and integration solutions to the Canadian Army.

The initial term of the contract runs to May, 2028, with work expected to commence late summer or early Fall of 2023 after satisfying certain formalities and work plan definition customary for a contract of this nature.

KWESST commented that the contract win announced today represents an important validating milestone in its growth strategy as a land tactical digitization development and integration house. “It embeds KWESST as a vital force development partner for the Canadian Army as it implements its Digital Modernization Strategy,” said David Luxton, executive chairman at KWESST. “It also demonstrates the power of working with strong industry partners to achieve contract wins like this.”

“Today’s announcement, coupled with other pending opportunities, is a pivotal development in our strategy to ramp up revenue and multi-year backlog into 2024 and beyond, for a predictable base of business centred on our Digitization capabilities,” added Luxton. “Those digitization service offerings in turn are already pulling in opportunities to sell Counter-Threat systems, like our digital Battlefield Laser Defence System and our digital Phantom battlefield electronic decoy system. This is therefore a very important and exciting juncture for the company.”