V2X Awarded Position On $11.9 Billion JETS 2.0 Contract To Deliver Cybersecurity Solutions

Rhea-AI Summary

V2X, Inc. (NYSE: VVX) has been awarded a position on the $11.9 billion Defense Logistics Agency (DLA) J6 Enterprise Technology Services 2.0 (JETS 2.0) contract. This contract enables V2X to provide advanced IT solutions, including cloud services and cybersecurity services, to the DLA. The indefinite-delivery/indefinite-quantity contract has an initial five-year base period with a potential five-year option.

Jeremy C. Wensinger, President and CEO of V2X, emphasized the company's commitment to supporting the DLA's mission by delivering critical cybersecurity and IT modernization services. The contract will support both U.S. and international Defense Department operations with essential IT services.

Positive

• Secured position on a $11.9 billion contract
• Contract has a potential 10-year duration (5-year base + 5-year option)
• Opportunity to provide advanced IT solutions to the Defense Logistics Agency
• Expands V2X's presence in the cybersecurity and cloud services sectors

Negative

• None.

Insights

Defense Technology Analyst

The $11.9 billion JETS 2.0 contract is a significant win for V2X, positioning the company as a key player in the defense technology sector. This indefinite-delivery/indefinite-quantity (IDIQ) contract structure offers substantial revenue potential over the next decade, with a 5-year base period and a possible 5-year extension.

The contract's focus on advanced IT solutions, including cloud services and cybersecurity, aligns with the growing importance of digital infrastructure in defense operations. V2X's selection demonstrates its competitive edge in these critical areas. The contract's scope, covering both U.S. and international Defense Department operations, provides V2X with a broad platform for growth and increased market share in the defense IT sector.

Investors should note that while IDIQ contracts don't guarantee specific revenue, they often lead to substantial task orders over time. V2X's ability to secure a position on this high-value contract suggests strong potential for future earnings growth and enhanced stability in its government contracting business.

Financial Analyst

This contract win is a significant positive for V2X, potentially boosting its revenue stream substantially over the next 5-10 years. With a total contract value of $11.9 billion shared among selected providers, even a modest share could materially impact V2X's financial performance.

Given V2X's current market cap of $1.73 billion, this contract represents a substantial opportunity relative to the company's size. While the exact revenue impact will depend on task order allocations, it's likely to enhance V2X's top-line growth and provide a more stable, long-term revenue base.

Investors should monitor future earnings reports for indications of how this contract translates into actual revenue and profit. The long-term nature of the contract also provides improved visibility into future cash flows, which could positively influence the company's valuation multiples. However, it's important to consider that competition among the selected providers may impact the actual revenue realized from this contract.

MCLEAN, Va., Oct. 1, 2024 /PRNewswire/ -- V2X, Inc. (NYSE: VVX) announces its selection for the $11.9 billion Defense Logistics Agency (DLA) J6 Enterprise Technology Services 2.0 (JETS 2.0) contract, securing its place amongst a select group of providers.

"In today's rapidly evolving digital landscape, vigilance is paramount. V2X is proud to support the Defense Logistics Agency by delivering critical cybersecurity and IT modernization services to uphold their mission," said Jeremy C. Wensinger, President and Chief Executive Officer of V2X.

Under the JETS 2.0 contract, V2X will provide a range of advanced IT solutions, including cloud services and cybersecurity services to the DLA. This indefinite-delivery/indefinite-quantity contract spans an initial five-year base period, with the potential for an additional five-year option, supporting both U.S. and international Defense Department operations with essential IT services.  

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.

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

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

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SOURCE V2X, Inc.

FAQ

What is the value of the JETS 2.0 contract awarded to V2X (VVX)?

The JETS 2.0 contract awarded to V2X (VVX) is valued at $11.9 billion.

What services will V2X (VVX) provide under the JETS 2.0 contract?

Under the JETS 2.0 contract, V2X (VVX) will provide advanced IT solutions, including cloud services and cybersecurity services to the Defense Logistics Agency.

What is the duration of the JETS 2.0 contract awarded to V2X (VVX)?

The JETS 2.0 contract has an initial five-year base period with a potential five-year option, totaling a possible 10-year duration.

When was V2X (VVX) awarded the JETS 2.0 contract?

V2X (VVX) announced its selection for the JETS 2.0 contract on October 1, 2024.