Wave Systems Corp. (fka WAVXQ)

[dig space]

What is this Army Thing?

From the J&A

https://www.fbo.gov/?s=opportunity&mode=form&id=dd79a609dcf915b121b8c79954717e14&tab=core&_cview=1

“PM FBCB2 needs to leverage enterprise class technologies Trusted Platform Module (TPM) to bring this security into the FBCB2 systems with minimum impact.”

and

“Once the hard drives leave the manufacture there is no way to provide managed binding with hard drives that ship out to locations in CONUS and Overseas operations. PM cannot utilize and issue encrypted hard drives to the field in a timely manner if support is not acquired before shipments of encrypted hard drives start coming off the DRS assembly lines FEB/MAR 2012. “

and

“Wave’s expertise is unique in that they have worked with and are familiar with the FBCB2 architecture and have gone through the process of acquiring a Certificate of Networthiness.”

and

“Wave is the only company that currently understands all aspects of the middleware, the Wave Management Software which is used for managing the self-encrypted modules in conjunction with the Army Self-Encrypted drives.” … and later … “is the sole owner with proprietary rights to the Wave Management Software needed to access the encrypted hard drives that the PM is buying.”

and from the Wave PR:

“The Army is exploring the enablement of SEDs with Trusted Platform Modules (TPMs) in its systems in order to mitigate the possibility of data being compromised if hardware were to fall into enemy hands. Wave has been retained to provide expertise in the area of SEDs and TPMs to help yield the maximum security advantage of these technologies while minimizing the disruptive impact to Army's fielding and sustainment. Wave will also provide vital engineering support to Army missions in support of continental U.S. and overseas operations.”

"This contract affirms the value and leadership that Wave brings in leveraging embedded security for mobile endpoints operating beyond the network perimeter," said Steven Sprague, CEO for Wave

and from the post-PR SKS interview:

“CEO Steven Sprague said that while the value of the contract is small, he considers it significant becaue it’s the first time that recently-implemented security systems known as trusted computing standards have been used in military missions - such as hard drives in trucks or drones - rather than simply computers and laptops.”

http://www.masshightech.com/stories/2012/03/26/daily18-Wave-Systems-provides-security-for-US-Army-missions.html

and finally, as DRS is mentioned as the supplier, one is likely looking at items like this:

http://www.drs-ts.com/pdf/JV5%20Block%202%20w%20Specs%20FNM.pdf

Specifcally, this device is slated as a FBCB2-BTF item for trucks, the same as the J&A.

Call me a dot-connecting fool, but the Wave PR was a back-pocket PR regarding the Army Sole Source contract that they chose to roll out before the CC to make it a fair game talking point for those who don't read DaBears' iHub fine print.

My belief is that when Wave provides general engineering services it goes for $800k-1.7m as has been the case in the past. This, I believe is pre-deployment engineering work for products effectively purchased … in the Army’s words: “coming off the DRS assembly lines FEB/MAR 2012” and “Wave Management Software needed to access the encrypted hard drives that the PM is buying”.

If it is engineering work to simply get your “COTS” software up and runnning, the the fees will be at cost, not a penny more.
On this one, for whatever reason, I believe SKS is understating what the project is. In every prior reference, this is an immediate deployment. Who knows how many devices. FBCB2 claims it has put some $120k+ units in the field. I expect that these will replace those units in a normal refresh rate, say, 40k units a year. I’m pegging that at $$75 per seat, or $9m to Wave over three years to start booking Q3 2012.