PAE Awarded Position on $950 Million Air Force IDIQ to Support Foreign Military Sales Transactions

Rhea-AI Summary

PAE (NASDAQ: PAE, PAEWW) has been awarded a significant contract by the U.S. Air Force, valued at up to $950 million over 13 years, as one of 22 contractors on an indefinite delivery, indefinite quantity contract for foreign military sales. The contract covers services such as engineering assessments, hardware procurement, and logistics support for foreign military fleets. Interim President and CEO Charlie Peiffer highlighted PAE's custom solutions and expertise for Air Force objectives. Work will be conducted at various locations and involves a 10-year ordering period followed by three years of performance.

Positive

• Awarded a contract worth up to $950 million over 13 years by the U.S. Air Force.
• Selected as one of 22 contractors, enhancing market position.
• Opportunity to demonstrate specialized capabilities in foreign military sales.

Negative

• None.

FALLS CHURCH, Va., June 28, 2021 (GLOBE NEWSWIRE) -- PAE (NASDAQ: PAE, PAEWW), a global leader in delivering smart solutions to the U.S. government and its allies, has been selected by the U.S. Air Force as one of 22 contractors on an indefinite delivery, indefinite quantity contract vehicle to support foreign military sales transactions. The Engineering Assessment, Procurement, Integration and Contractor Logistics Support contract is valued at up to $950 million over 13 years.

PAE will compete for task orders to provide services that include engineering assessments, hardware procurement, integration of aircraft and intelligence, surveillance and reconnaissance sensors and contractor logistics support for foreign military fleets of fixed- and rotary-wing aircraft and intelligence, surveillance, and reconnaissance systems.

Interim President and CEO Charlie Peiffer said the award presents opportunities for PAE to demonstrate a range of specialized capabilities.

“We believe PAE is uniquely positioned to deliver customized, innovative solutions for Air Force objectives on the EPIC program,” Peiffer said. “We plan to offer expertise that merges new technologies, our capabilities and customer insight built from a long history supporting Air Force missions around the world.”

The 13-year contract includes a 10-year ordering period followed by an additional three-year period of performance. Work on the contract will be performed at awardee facilities and Foreign Military Sales locations.

About PAE
For 65 years, PAE has tackled the world’s toughest challenges to deliver agile and steadfast solutions to the U.S. government and its allies. 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, strategy for and management of growth, needs for additional capital, risks related to U.S. government contracting generally, including congressional approval of appropriations, and bid protests and risks related to foreign operations. 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 contract was awarded to PAE by the U.S. Air Force on June 28, 2021?

PAE was awarded a contract valued up to $950 million to support foreign military sales transactions.

How long is the contract with the U.S. Air Force for PAE?

The contract is for 13 years, including a 10-year ordering period followed by an additional three years of performance.

What services will PAE provide under the U.S. Air Force contract?

PAE will provide engineering assessments, hardware procurement, aircraft integration, and logistics support for foreign military fleets.

What is the significance of the June 28, 2021 press release for PAE shareholders?

The press release indicates a substantial contract win, potentially boosting PAE's revenue and market presence.