Yes, it's part of the distributor modulation system, also known at the TRS (Transmission-Regulated Spark) setup, but I'm not entirely sure how this particular component does in the system. Here's a couple schematics from the MPC that I just posted. It does seem to be an I6 and 302-only piece, the bigger V8s didn't have this.
http://www.fordification.com/tech/image ... ator04.jpg
http://www.fordification.com/tech/image ... ator05.jpg
(Basic Part Number 12A111)
As you can see in that schematic, yours is missing the cover.
I also have a '71 TRS mechanic's training brochure, but it doesn't show this component either.
![Hmmm :hmm:](./images/smilies/icon_hm.gif)
I'll do some poking around and see what I can find out.