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Military communications networks typically employ gateway multiplexers to aggregate all communications traffic onto a single link. These multiplexers typically allocate bandwidth statically via time-division multiplexing (TDM). Inefficiencies occur when a high-bandwidth circuit, e.g., a video teleconferencing circuit, is inactive rendering a considerable portion of the aggregate bandwidth wasted. Dynamic bandwidth allocation (DBA) reclaims unused bandwidth from circuits with low utilization and reallocates it to circuits with higher utilization without adversely affecting queuing delay. We develop a DBA algorithm which measures instantaneous utilization by counting frames arriving during the transmission time of a single frame on the aggregate link. The maximum calculated utilization observed over a monitoring period is used to calculate the bandwidth available for reallocation. Utilization results indicate the proposed DBA algorithm significantly outperforms a static allocation model in all cases. The best configuration uses a 65536 bps allocation granularity and a 10 second monitoring period. Utilization gains observed with this configuration are almost 17% over the static allocation method. Queuing delays increased by 50% but remained acceptable, even for real-time traffic.