PAE Awarded USPS Contract Valued at $63.5M Supporting Los Angeles Mail Transport Equipment Service Center

Rhea-AI Summary

PAE (NASDAQ: PAE, PAEWW) announced a $63.5 million contract to support the U.S. Postal Service at the Mail Transport Equipment Service Center in Los Angeles. This three-year base contract, extendable to seven years, encompasses the management and processing of mail transport equipment. Interim President and CEO Charlie Peiffer emphasized the company's commitment to enhancing USPS operations through proven innovations and continuous improvement practices, building on PAE's long history with USPS facilities since 1998.

Positive

• Awarded a $63.5 million contract with the U.S. Postal Service.
• Contract could extend to seven years, ensuring long-term revenue potential.
• Strengthens PAE's expertise in business process outsourcing with USPS, building on a 23-year relationship.

Negative

• None.

FALLS CHURCH, Va., Nov. 11, 2021 (GLOBE NEWSWIRE) -- PAE (NASDAQ: PAE, PAEWW), a global leader in delivering smart solutions to the U.S. government and its allies, has been awarded a contract supporting the U.S. Postal Service at the Mail Transport Equipment Service Center in Los Angeles. The contract is valued at $63.5 million if all options are exercised.

PAE Interim President and CEO Charlie Peiffer said the Los Angeles award builds on the team’s history of delivering business process outsourcing expertise at USPS MTESC facilities across the country since 1998.

“Keeping with our strategy of expanding the reach of our existing capabilities, PAE will deliver proven innovations and continuous improvement practices for the U.S. Postal Service at its Los Angeles MTESC,” Peiffer said. “Our support of MTESC operations around the country position us to successfully provide key management and customer service solutions for critical USPS functions.”

The three-year base contract may be extended to seven years through two options and includes the processing and management of mail transport equipment used to enclose and transport mail. MTESCs throughout the United States manage and ship transport equipment to USPS and USPS customer facilities.

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, 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. 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 PAE's new contract with the U.S. Postal Service?

The new contract is valued at $63.5 million if all options are exercised.

How long is the duration of PAE's contract with USPS?

The contract has a three-year base duration, with the possibility of extending to seven years.

When was the contract awarded to PAE for supporting USPS operations?

The contract was announced on November 11, 2021.

What services will PAE provide under the new USPS contract?

PAE will manage and process mail transport equipment at the Los Angeles Mail Transport Equipment Service Center.

How does this contract impact PAE's business strategy?

This contract aligns with PAE's strategy to expand their existing capabilities by providing key management and customer service solutions to critical USPS functions.