Ann Arbor-based engineering research and development firm Cybernet Systems Corp. this week received two contracts allowing it to bid on up to $17.5 billion in defense simulation projects through the U.S. Army Simulation, Training and Instrumentation program.

The contracts themselves have only a nominal $5,000 value, but give Cybernet the standing to bid competitively with dozens of companies nationwide on military projects over the next 10 years, said Charles Cohen, vice president of research and development for Cybernet. The company signed the first of the two contracts on Monday.

“The real significance is in relation to what could have happened if we had not won the contracts,” he said.

“If we couldn’t bid on our own, then in order to be part of this process we would have to offer our services as a subcontractor to a (primary defense contractor like) Lockheed Martin (Corp.) or someone on those jobs. And they would have no legal or other obligation to have to consider us.”

The Army Program Executive Office on STRI programs will consider Cybernet along with Lockheed Martin Corp. and other competitive bidders over the next 10 years, Cohen said.

Headquartered in Orlando, the Army PEO STRI handles acquisition of hardware and software simulations, for the military to use in testing equipment performance and training personnel.