(Sharecast News) - QinetiQ announced on Friday that it has been awarded a three-year contract by Defence Digital, part of the UK Ministry of Defence, to support the development of next-generation tactical military communications systems.

The FTSE 250 company said the contract, valued at up to £150m, would provide the British Army with enhanced communication capabilities to improve decision-making on the front line.

It said the initial contract award was worth £39 million, with options for extension for up to two additional years.

As part of the agreement, about 100 experts from the QinetiQ-led 'Team Advance' would join the MoD's delivery team, contributing expertise in programme management, cost engineering, network security, and safety engineering.

The contract was part of the wider Land Environment Tactical Communications and Information Systems (LETacCIS) programme, aimed at improving the British Army's operational effectiveness.

It would build on QinetiQ's previous work under the BATCIS Private Sector Support (BPSS) contract, where it collaborated with partners BMT, Roke and Eviden - formerly Atos - to deliver programme management, engineering, and training services.

"In this digital era, reliable and robust communications are the bedrock of an operationally effective fighting force," said James Willis, QinetiQ's chief executive of UK intelligence.

"As a trusted partner to the UK military we are delighted to continue to support development and delivery of this vitally important programme that enables our armed forces to defend our nation, safely and securely."

Reporting by Josh White for Sharecast.com.