Mackay APTS Group Wins Five-Year U.S. Navy Contract Renewal via AT&T

Posted on March 1, 2013

After nearly a year of active negotiations, Mackay Marine’s eight-person APTS Team, led by Angela Gress of Mackay’s Norfolk office, won not only a contract renewal, but an exceptionally long five (5) year extension.

The contract relates to the Morale Phone Program, which supplies, installs, and maintains banks of ruggedized “Public Telephones” aboard approximately 137 U.S. Navy ships.  Approximately 80 systems are installed on “small boys” (CG, DDG class ships) and are on the horizon for the APTS system to be reactivated, requiring full retro-fitting.  The current architecture is concentrated on vessels with large populations of sailors such as aircraft carriers, Amphibious Assault Ships (LHA/LHD), and Landing Craft (LSDs).  The Navy contract is managed by NEXCOM (Navy Exchange Service Command).  AT&T provides the airtime and connectivity; acting as the prime contractor, with Mackay Marine serving as AT&T’s sole sub-contractor.

Mackay was first awarded this program in 2001, with a three-year contract.  Overtime AT&T re-adjusted the scope and economics of the program in response to the burgeoning use of competing technologies, such as text messaging, e-mail, and SKYPE, which resulted in reduced voice communications.

Mackay’s APTS Group provided numerous suggestions for cost reductions and revenue improvements.  Considerations throughout 2012 convinced AT&T to reaffirm the program; rewarding Mackay’s excellent teamwork and performance with a five year contract renewal.