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Data Link Solutions, LLC (DLS), a joint venture between Rockwell Collins Inc. (COL - Free Report) and London-based BAE Systems plc, won a navy contract for the multifunctional information distribution system (MIDS) joint tactical radio system, or JTRS, terminal configuration. The contract has a total value of $33.4 million.

This cost-plus-incentive-fee delivery order under a previously awarded contract calls for DLS to develop, design, and implement four communications nets for the multifunctional information distribution system joint tactical radio system, or MIDS JTRS, terminal configuration. This activity will take place in Wayne, N.J. and Cedar Rapids, Iowa and is scheduled to be completed by Mar 7, 2015.

The MIDS JTRS is a 4-channel radio, used for complex Link 16 waveform and capable of three additional communication protocols including the Airborne Networking Waveform. This terminal has the competence to host and offer required computer processing for routing and platform-specific applications. This feature would lower the integration cost into host platforms.

Earlier this month, DLS won dual contracts worth $166.3 million each, from the U.S. Department of Defense (DoD). Both these contracts are modifications to multiple-award contracts awarded earlier. Per the agreement, DLS will provide systems engineering and integration support to the MIDS low volume terminal (LVT) and the MIDS JTRS terminal.

Although we remain apprehensive about the U.S. government’s delayed funding authorizations, program execution risks, dependence on international sales and high exposure to fixed price contracts, Rockwell Collins has been experiencing a strong contract pipeline as evident from its record book.

Recently, the company won a $44.5 million foreign military sales contract from the U.S. DoD to modernize three of The Boeing Company’s (BA - Free Report) KC-135R aerial refueling tankers for the French Air Force. Given the cutbacks in the U.S. defense budget leading to a decline in domestic orders, the foreign contracts will offer a stable revenue stream for the company.

Rockwell Collins currently has a Zacks Rank #3 (Hold). In the near term, we would advise investors to accumulate its Zacks Rank #1 (Strong Buy) peer Astronics Corporation (ATRO - Free Report) and Zacks Rank #2 (Buy) peer GenCorp Inc. .

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