Bravour, a PAE Company, Awarded €95M On Base IDIQ by NATO for Vehicle Services in Europe

Rhea-AI Summary

Bravour Leistungen GmbH, a subsidiary of PAE, has secured a €95 million (about $107.4 million) contract from the NATO Support and Procurement Agency. This three-year contract, which can be extended by two optional years, involves providing services for U.S. military vehicles across Europe. The contract highlights PAE's expanding support for NATO missions and involves additional services in hazardous material management and quality assurance.

Positive

• Award of €95 million contract boosts revenue potential for PAE.
• Strengthens PAE's partnership with NATO, enhancing its market position.
• Potential for contract extension adds further revenue security.

Negative

• Risks associated with IDIQ contract structures could impact future revenue certainty.
• Dependence on U.S. government contracts poses operational risks.

FALLS CHURCH, Va., Dec. 02, 2021 (GLOBE NEWSWIRE) -- Bravour Leistungen GmbH, a wholly owned subsidiary of PAE (NASDAQ: PAE, PAEWW) based in Germany, was awarded a €95 million (approximately $107.4 million at the time of publication) single-award, indefinite delivery/indefinite quantity contract by the North Atlantic Treaty Organization Support and Procurement Agency. The three-year award may be extended by two option years. Under this contract, Bravour will provide services for U.S. military vehicles at facilities throughout Europe.

PAE Interim President and CEO Charlie Peiffer said the award to Bravour expands PAE’s Readiness and Sustainment team support for NATO missions.

“NSPA depends on PAE through Bravour to deliver solutions through our unique capabilities to support critical NATO missions,” Peiffer said. “We look forward to continuing that essential work with this award.”

In addition to vehicle services supporting NATO efforts, Bravour delivers solutions for various NSPA initiatives across Europe, including the management of hazardous material management system operations, ammunition X-ray operations and quality assurance and surveillance inspection support.

About PAE
For more than 66 years, PAE has tackled the world’s toughest challenges to deliver agile and steadfast solutions to the U.S. government and host government partners. With a global workforce of about 20,000 on all seven continents and in approximately 60 countries, PAE delivers a broad range of operational support services to meet the critical needs of our clients. Our headquarters is in Falls Church, Virginia. Find us online at pae.com, on Facebook, Twitter and LinkedIn.

Forward-Looking Statements
This press release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about PAE’s possible or assumed future results of operations, financial results, backlog, estimation of resources for contracts, risks related to IDIQ contracts, risks related to operating internationally, and risks related to U.S. government contracting generally. These forward-looking statements are based on PAE’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside PAE’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Forward-looking statements included in this release speak only as of the date of this release. PAE does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws.

For media inquiries regarding PAE, contact:
Terrence Nowlin
Senior Communications Manager
PAE
703-656-7423
terrence.nowlin@pae.com

For investor inquiries regarding PAE, contact:
Mark Zindler
Vice President, Investor Relations
PAE
703-717-6017
mark.zindler@pae.com

FAQ

What is the value of the new contract awarded to PAE?

The new contract awarded to PAE is valued at €95 million, which is approximately $107.4 million.

How long is the contract secured by PAE with NATO?

The contract secured by PAE with NATO has a three-year term and may be extended for two additional years.

What services will PAE provide under the new NATO contract?

Under the NATO contract, PAE will provide services for U.S. military vehicles across Europe and additional support in hazardous material management and quality assurance.

What potential risks are associated with the new contract for PAE?

The contract involves risks related to indefinite delivery/indefinite quantity (IDIQ) structures and dependence on U.S. government contracts.