archTIS lands second DoD contract as NC Protect enterprise license nears
archTIS Limited has secured a second U.S. Department of Defense services contract worth A$315,000 to accelerate development of its NC Protect security platform. The company has also updated the market on its enterprise licensing negotiations, with execution now expected this quarter.
The latest contract follows an earlier A$235,000 award announced in October 2025 and completed in January 2026. The new A$315,000 contract is channelled through Copper River Technologies and reflects the DoD’s continued investment in NC Protect ahead of a broader enterprise licensing agreement.
When big ASX news breaks, our subscribers know first
What the DoD contract means for NC Protect
The new contract funds development work aimed at accelerating key NC Protect functionality specified by the DoD for enterprise-scale deployment. The scope covers:
- Performance at scale within Azure environments
- Policy administration capabilities
- Expanded reporting functionality
Work commences immediately. The contract is fixed-price, with revenue expected to be recognised in FY27 as work is delivered. It contains a standard U.S. government termination for convenience clause and no other material conditions.
Importantly, the CEO has been explicit that this development work is not required for an initial enterprise license deployment. Rather, it reflects functionality the DoD considers desirable ahead of broader rollout — a distinction that matters for investors assessing the sequencing of this opportunity.
Daniel Lai, Managing Director and CEO, archTIS
“Given the recent close of the US DoD fiscal year, I wanted to maintain full transparency and update the market on the continued progress, expansion, and support of our US DoD opportunity… The newly issued development work is not required for initial deployment of an enterprise license, however, is seen as desirable functionality across the warfighter network. That is a clear signal of intent…”
The DoD is effectively funding accelerated roadmap features ahead of, and independent of, a binding license agreement. For investors, this provides demand validation — the agency is directing resources toward NC Protect functionality without waiting for a formal enterprise license to be in place.
Understanding NC Protect and the DoD enterprise license opportunity
NC Protect is a data-centric security solution built on attribute-based access control (ABAC) principles. In practical terms, ABAC means that access to sensitive data is governed by dynamic policy rules tied to the attributes of users, data, and the environment — rather than simple permission lists. The platform is designed to protect sensitive information across cloud, on-premises, and hybrid environments.
The US-European military alliance deployment secured in February 2026 and valued at A$1.22 million demonstrated that NC Protect’s ABAC architecture could meet the access-control requirements of multi-jurisdiction coalition networks, a credential directly relevant to the DoD’s warfighter network expansion ambitions.
The DoD opportunity is significant in scope. Negotiations now cover both classified and unclassified Microsoft 365 environments within the DoD — an expansion of the original scope. In a U.S. defence context, an enterprise-scale deployment could involve a large user base, carrying meaningful recurring revenue implications.
The deal structure involves several layers:
- archTIS develops and maintains NC Protect
- Copper River Technologies holds the DoD services contract
- A prime systems integrator manages deployment into the DoD’s Microsoft 365 environment
- The DoD is the end user and licensee
Understanding this structure helps explain why the enterprise license timeline is subject to coordination between multiple parties — a factor the company has addressed directly in its latest update.
Enterprise license timing updated — execution expected this quarter
No binding enterprise license agreement has been executed as of the announcement date of 5 October 2026. The company now expects execution this quarter (Q2 FY27, covering October to December 2026).
Key points on the revised timing:
- The delay reflects the need to finalise delivery arrangements between Copper River, as contract holder, and the prime systems integrator responsible for the DoD’s Microsoft 365 environment
- No negative changes have been made to the scope of the opportunity
- The company characterises the remaining step as a normal part of deployment at this scale
- archTIS will inform the market in accordance with its continuous disclosure obligations
The following table summarises the key milestones in the DoD engagement to date:
| Milestone | Announcement Date | Contract Value | Status |
|---|---|---|---|
| First DoD services contract | October 2025 | A$235,000 | Completed January 2026 |
| Second DoD services contract | October 2026 | A$315,000 | Work commenced immediately |
| Enterprise license | TBC (expected this quarter) | Not yet disclosed | Negotiations progressing |
The enterprise license value has not been disclosed in the announcement.
The DoD enterprise licensing opportunity has been sized at an indicative annual value of A$7.5 million to A$15 million, based on an expanded quotation covering up to 325,000 users across tiered pricing and single and multi-year term options submitted to DoD stakeholders in August 2026.
archTIS has stated it remains confident of successfully executing a licensing agreement. The remaining step — agreement between the delivery partners on how the DoD deployment is managed — is characterised by management as routine for a rollout of this scale, rather than indicative of any substantive change to the underlying opportunity.
Don’t Miss the Next ASX Tech Winner
Get FREE breaking ASX tech news delivered to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ subscribers already staying ahead of the market. Click the “Free Alerts” button at Big News Blast to receive the moment market-moving tech announcements hit the ASX.