VSE Corporation (NASDAQ: VSEC) has been awarded a Cost Plus Fixed Fee (CPFF) Task Order under its Rapid Response Third Generation (R2-3G) prime contract to continue a significant portion of the support services to the U.S. Army Reserve Command for its Equipment, Engineering, Maintenance and Logistics Readiness Program. Such services were previously provided by VSE under a General Services Administration (GSA) contract that expired in July 2013. The R2-3G Task Order has a 12-month period of performance with a funded value of $32M and a ceiling of $46.5M. We plan to reinstate approximately 350 employees that were furloughed when the GSA contract expired in July. We are pursuing the balance of the former GSA Logistics Readiness Support work through two additional competitive solicitations expected to be awarded in September 2013.
For the fiscal year ended December 31, 2012, VSE had revenues of $78M from providing USARC with equipment transportation support, planning, coordination, and movement services in multiple locations across the United States.
This program provides sustainment-level refurbishment services and overhaul of tactical equipment. VSE completes 1,000-1,200 major refurbishments annually, with an acceptance rate of more than 99% over the last three years. VSE personnel work with Government counterparts to maintain construction and engineering equipment, tactical and non-tactical wheeled vehicles, automotive, ground support equipment, small-engine driven devices, heavy transporters, communications and electronics gear, small arms, and generators.
“We are very pleased that the dedicated employees of our Federal Group will be able to continue their equipment sustainment services in field locations across the United States,” said Federal Group President Donnelle Moten. “This award reflects the level of trust that we have built with our customer for many years by providing high quality, rapid response service to maintain some of the Army Reserve’s most important assets. We are dedicated to ensuring that the men and women who rely on this equipment will have what they need on time, every time.”
Source: VSE Corporation
Date: Sep 3, 2013