Ceradyne, Inc. Receives $127M Contract for Multi-Year ESAPI from US DoD

Ceradyne, Inc. announced that it has received a new three-year ID/IQ (Indefinite Delivery/Indefinite Quantity) contract for ESAPI (Enhanced Small Armor Protective Inserts) ceramic armor plates from the contracting activity, The Defense Logistics Agency Group Support, Philadelphia, PA. The using services include the United States Army, Navy, Air Force and Marine Corps. Simultaneously, with this award an initial delivery order for approximately $127 million was issued for delivery in 2012, complete by March 31, 2013. Ceradyne's practice with all ID/IQ contracts is to record as backlog only the portion of the award which has firm delivery orders issued against the total contract. In this particular case, Ceradyne will only book Delivery Order 0001 for $127 million. David P. Reed, Ceradyne President North American Operations, commented: "We are extremely pleased to receive this multi-year ESAPI award and its initial delivery order. We believe that this contract was, at least in part, awarded to Ceradyne based on our technology, in-place production capacity, past performance and our vertical integration strategy." Reed continued: "Our ability to produce the starting ceramic powders, hot press the high-quality ceramic plates and finally assemble the armor system has a long track record of success and should serve Ceradyne and particularly our fighting men and women well as we go forward."