VSE Corporation Awarded ~$100 Million Sole-Source Bridge Contract With U.S. Navy

Rhea-AI Summary

VSE Corporation (NASDAQ: VSEC) has secured a 12-month contract valued at approximately $100 million from Naval Sea Systems Command (NAVSEA). This contract enables VSE to provide Foreign Military Sales Follow-on Technical Support, aiding foreign navies with lifecycle optimization, integration support, and supply chain distribution. With over 25 years of partnership, VSE is recognized for its expertise in supporting the U.S. Navy and its allies. This contract enhances VSE's position in global ship repair and logistics services.

Positive

• Awarded a $100 million contract from NAVSEA enhancing revenue potential.
• Continued partnership with NAVSEA exemplifies a strong operational track record.
• VSE's expertise in technical support and logistics strengthens market position.

Negative

• None.

ALEXANDRIA, Va.--(BUSINESS WIRE)-- VSE Corporation (NASDAQ: VSEC, "VSE," or the "Company"), a leading provider of aftermarket distribution and maintenance, repair and overhaul (MRO) services for land, sea and air transportation assets for government and commercial markets, today announced that its Federal and Defense segment has been awarded a 12-month, ~$100 million contract by Naval Sea Systems Command (NAVSEA).

VSE is the current contractor providing Foreign Military Sales (FMS) Follow-on Technical Support (FOTS) to NAVSEA and has the technical capability, customer knowledge and expertise to execute repair and maintenance of critical foreign assets. Under the terms of the contract award and in conjunction with NAVSEA’s International Fleet Support Program Office (PMS 326), VSE will continue to support eligible foreign navies with a broad range of aftermarket services. Specifically, VSE will provide aftermarket services, such as life cycle optimization, integration support, systems upgrades, and supply chain distribution. These services support our customers’ transfer, acquisition, operation, and maintenance of naval vessels and systems within their inventory.

“For more than 25 years, NAVSEA and VSE have partnered to provide eligible foreign navies with mission-critical systems and capabilities to achieve their strategic objectives,” stated Robert Moore, President of VSE’s Federal and Defense Services (FDS) segment. “Under this contract award, VSE will continue to provide the highest level of service and support to the U.S. Navy and its partner countries, consistent with our strong track record of performance throughout this long-term relationship. We are excited by the opportunities afforded by this important partnership, one that further establishes VSE as a leading provider of global ship repair, modernization, and logistics services.”

ABOUT VSE CORPORATION

VSE is a leading provider of aftermarket distribution and repair services for land, sea and air transportation assets for government and commercial markets. Core services include maintenance, repair, and overhaul (MRO) services, parts distribution, supply chain management and logistics, engineering support, and consulting and training services for global commercial, federal, military and defense customers. VSE also provides information technology and energy consulting services. For additional information regarding VSE’s services and products, visit www.vsecorp.com.

FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause VSE’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this document. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that actual results will not differ materially from these expectations. “Forward-looking” statements, as such term is defined by the SEC in its rules, regulations and releases, represent our expectations or beliefs, including, but not limited to, statements concerning our operations, economic performance, financial condition, the impact of widespread health developments, such as the ongoing COVID-19 outbreak, the health and economic impact thereof, and the governmental, including federal contractor vaccine mandates, commercial, consumer and other responses thereto, growth and acquisition strategies, investments and future operational plans. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “forecast,” “seek,” “plan,” “predict,” “project,” “could,” “estimate,” “might,” “continue,” “seeking” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements, by their nature, involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the uncertainty surrounding the ongoing COVID-19 outbreak and the other factors identified in our reports filed or expected to be filed with the SEC including our Annual Report on Form 10-K for the year ended December 31, 2021. All forward-looking statements made herein are qualified by these cautionary statements and risk factors and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Readers are cautioned not to place undue reliance on these forward looking-statements, which reflect management's analysis only as of the date hereof. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220309005323/en/

INVESTOR CONTACT

Noel Ryan, IRC

(720) 778-2415

investors@vsecorp.com

Source: VSE Corporation

FAQ

What is the value of VSEC's new contract with NAVSEA?

VSE Corporation's new contract with NAVSEA is valued at approximately $100 million.

What services will VSE provide under the NAVSEA contract?

VSE will provide lifecycle optimization, integration support, and aftermarket services for foreign navies.

How long is the contract duration awarded to VSE Corporation by NAVSEA?

The contract awarded to VSE Corporation by NAVSEA is for a duration of 12 months.

What is VSE Corporation's stock symbol?

VSE Corporation's stock symbol is VSEC.

How does VSE's contract with NAVSEA impact its market position?

The contract strengthens VSE's position as a leading provider of global ship repair and logistics services.