V2X Awarded $140 Million Task Order to Support a Key Space Force Tracking and Instrumentation Station

Rhea-AI Summary

V2X has secured a $140 million task order to support U.S. Space Force operations at Ascension Island through the Air Force Contract Augmentation Program V (AFCAP V). The five-year contract includes a one-year base period and four one-year options.

The strategic location in the South Atlantic will see V2X delivering essential services to enhance mission outcomes, operational efficiency, and infrastructure resilience. CEO Jeremy C. Wensinger emphasized the island's significant role in advancing Space Force missions.

The contract, starting July 2025, reinforces V2X's position as a trusted AFCAP V partner, highlighting their expertise in managing remote operations globally. This award demonstrates the company's capability to provide full-spectrum solutions and maintain high-quality support services at scale.

Positive

• $140M task order awarded with 5-year duration (1-year base + 4 one-year options)
• Contract strengthens existing relationship with U.S. Space Force through AFCAP V program
• Operations starting July 2025 with firm-fixed-price structure, providing revenue stability
• Strategic expansion in space sector operations and infrastructure services

Negative

• Contract value spread across 5 years reduces annual revenue impact
• Contract execution dependent on yearly option renewals, not guaranteed full term

Insights

Financial Analyst

V2X secures $140M Space Force contract, providing steady potential revenue through 2030 with predictable pricing structure.

This $140 million ceiling-value task order represents a significant contract win for V2X. The firm-fixed-price structure provides visibility into potential revenue over the five-year period (one-year base with four one-year options), enhancing financial predictability through 2030. With operations set to begin July 2025, revenue contribution would start in Q3 2025.

The contract reinforces V2X's standing as a trusted partner under the Air Force Contract Augmentation Program V (AFCAP V), demonstrating their capability to secure substantial government contracts. This five-year agreement adds a layer of revenue stability that investors typically value in the government services sector.

Supporting Space Force operations at Ascension Island leverages V2X's experience in remote location services, a specialized capability that typically commands premium rates. The firm-fixed-price arrangement indicates V2X's confidence in their cost control abilities for this complex operational environment.

While the press release doesn't specify what percentage of V2X's overall revenue this contract represents, the $140 million ceiling value establishes a foundation of potential income in the strategically important space domain, positioning the company in a growth sector within defense spending.

Defense Contracting Specialist

V2X's $140M Space Force contract strengthens position in critical space infrastructure support and strategic defense operations.

This task order highlights V2X's capabilities in supporting mission-critical space infrastructure. Ascension Island serves as a key tracking and instrumentation station in the Eastern Range, essential for space launches, satellite tracking, and broader space domain awareness operations - all increasingly vital components of national security infrastructure.

The $140 million ceiling-value contract demonstrates the premium placed on reliable infrastructure operations for strategic military assets. Space Force investments have increased in priority as space becomes a contested domain, making this contract particularly significant from a defense sector perspective.

V2X notes their "full lifecycle capabilities and decades of experience operating at scale in remote and dynamic environments" - specialized expertise that directly addresses the challenges of maintaining operations on an isolated South Atlantic island. This capability differentiates contractors in the competitive defense services marketplace.

The five-year structure (one-year base plus four option years) is standard for government contracts, balancing long-term operational stability with government flexibility. By securing this contract, V2X demonstrates competitiveness in the space support services segment, an area likely to see continued investment as space capabilities grow in military importance.

RESTON, Va., April 30, 2025 /PRNewswire/ -- V2X Inc. (NYSE: VVX) announced it has been awarded a new five-year task order to support U.S. Space Force operations at Ascension Island as part of the U.S. Air Force's Contract Augmentation Program V (AFCAP V). The firm-fixed-price award includes a one-year base period and four one-year option periods, with a ceiling value of $140 million.

Ascension Island is a key strategic location in the South Atlantic, supporting U.S. Space Force operations and the broader Eastern Range mission. Under this contract, V2X will deliver essential services that improve mission outcomes, operational efficiency, and infrastructure resilience on the island.

"Ascension Island plays a significant role in advancing the U.S. Space Force mission, and we're proud to support this national security asset," said Jeremy C. Wensinger, President and Chief Executive Officer at V2X.  "We will leverage our full lifecycle capabilities and decades of experience operating at scale in remote and dynamic environments to deliver improved readiness for this strategically vital mission."

V2X continues to be a trusted partner under the AFCAP V, the company's consistent performance under the program stresses its ability to deliver agile, reliable, and high-quality support services at scale across the globe. Operations are set to begin July 2025, reinforcing V2X's commitment to supporting full-spectrum solutions.

About V2X
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission's lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today's toughest challenges across all operational domains.

Investor Contact 
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
IR@goV2X.com
719-637-5773

Media Contact
Angelica Spanos Deoudes
Senior Director, Marketing and Communications  
Angelica.Deoudes@goV2X.com
571-338-5195

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SOURCE V2X, Inc.

FAQ

What is the value and duration of V2X's Space Force contract at Ascension Island?

V2X (VVX) secured a $140 million task order spanning five years, including a one-year base period and four one-year options, starting July 2025.

How will V2X's Ascension Island contract support Space Force operations?

V2X will provide essential services to improve mission outcomes, operational efficiency, and infrastructure resilience at the Space Force tracking and instrumentation station on Ascension Island in the South Atlantic.

What is the strategic importance of V2X's Space Force contract?

The contract supports a key strategic location in the South Atlantic that is vital for U.S. Space Force operations and the Eastern Range mission, enhancing national security capabilities.

When does V2X begin operations for the Space Force Ascension Island contract?

V2X will commence operations at the Ascension Island facility in July 2025 under the Air Force Contract Augmentation Program V (AFCAP V).

What type of contract did V2X receive for the Space Force project?

V2X received a firm-fixed-price task order under the U.S. Air Force's Contract Augmentation Program V (AFCAP V).