The contract, worth GB pound 300,000, went to Plextek Ltd to research technology that allows improved communication between military vehicles and convoys.
The Competition of Ideas was devised to encourage small and medium enterprises to work with the MoD and to come up with new defence technologies.
Defence Minister Lord Drayson said he was looking forward to seeing the results of Plextek’s research.
“This technology could allow vehicles to share information on their position and cargo status with other vehicles in the convoy as well as transmitting the data back to base, all using very low cost, low power technology with little chance of intercept.
“This would make a real difference to the military and civilian drivers that provide logistical support to UK forces.”
Plextek Ltd employs around 100 people in the UK. Their contract-winning proposal looks at how an ad-hoc networking system can enable better communication on battlefields and routine operations.
The MoD says this contract is the first of many to be announced by the end of July. Companies who do well in the competition, which was launched in October 2006, will receive funding as part of the MoD’s ongoing research into defence technology.