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V2X Expands Army Training Support with $921 Million BEST MAC Contract

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V2X (NYSE: VVX) has secured a position on the Bridge to Enduring Synthetic Training Environment Tactical Engagement Simulation Systems (BEST MAC) Lot 1 contract, valued at $921 million. The contract spans a 10-year period, including a five-year base and two options (3+2 years).

The contract focuses on supporting the U.S. Army's TESS devices, which enable simulated military training engagements for weapons, vehicles, and aviation systems. This award complements V2X's existing $3.7 billion Warfighter-Training Readiness Solutions task order.

V2X will maintain and modify TESS products to ensure they remain current with evolving weapon systems, enhancing the Army's live training capabilities and supporting national security objectives.

V2X (NYSE: VVX) ha ottenuto un posto nel contratto Lot 1 del Bridge to Enduring Synthetic Training Environment Tactical Engagement Simulation Systems (BEST MAC), del valore di 921 milioni di dollari. Il contratto ha una durata di 10 anni, comprendente una base di cinque anni e due opzioni (3+2 anni).

Il contratto si concentra sul supporto dei dispositivi TESS dell'esercito statunitense, che consentono simulazioni di addestramento militare per armi, veicoli e sistemi di aviazione. Questo riconoscimento si aggiunge all'ordine di lavoro esistente di V2X del valore di 3,7 miliardi di dollari per le Soluzioni di Prontezza all'Addestramento dei Combattenti.

V2X manterrà e modificherà i prodotti TESS per garantire che rimangano aggiornati con l'evoluzione dei sistemi d'arma, migliorando le capacità di addestramento dal vivo dell'esercito e supportando gli obiettivi di sicurezza nazionale.

V2X (NYSE: VVX) ha conseguido una posición en el contrato Lot 1 del Bridge to Enduring Synthetic Training Environment Tactical Engagement Simulation Systems (BEST MAC), valorado en 921 millones de dólares. El contrato abarca un período de 10 años, incluyendo una base de cinco años y dos opciones (3+2 años).

El contrato se centra en apoyar los dispositivos TESS del ejército de EE. UU., que permiten simulaciones de entrenamiento militar para armas, vehículos y sistemas de aviación. Este premio complementa la orden de trabajo existente de V2X valorada en 3.7 mil millones de dólares para Soluciones de Preparación para el Entrenamiento de Combatientes.

V2X mantendrá y modificará los productos TESS para garantizar que se mantengan actualizados con los sistemas de armas en evolución, mejorando las capacidades de entrenamiento en vivo del ejército y apoyando los objetivos de seguridad nacional.

V2X (NYSE: VVX)$9억 2천 1백만 달러의 가치가 있는 Bridge to Enduring Synthetic Training Environment Tactical Engagement Simulation Systems (BEST MAC) Lot 1 계약에서 자리를 확보했습니다. 이 계약은 10년 기간에 걸쳐 있으며, 5년의 기본 계약과 2개의 옵션(3+2년)을 포함합니다.

이 계약은 무기, 차량 및 항공 시스템에 대한 군사 훈련 시뮬레이션을 가능하게 하는 미국 육군의 TESS 장치를 지원하는 데 중점을 두고 있습니다. 이 수상은 V2X의 기존 $37억 달러 규모의 전투원 훈련 준비 솔루션 작업 주문을 보완합니다.

V2X는 TESS 제품을 유지 관리하고 수정하여 진화하는 무기 시스템에 맞게 최신 상태를 유지하며, 육군의 실시간 훈련 능력을 향상시키고 국가 안보 목표를 지원할 것입니다.

V2X (NYSE: VVX) a obtenu une position dans le contrat Lot 1 du Bridge to Enduring Synthetic Training Environment Tactical Engagement Simulation Systems (BEST MAC), d'une valeur de 921 millions de dollars. Le contrat s'étend sur une période de 10 ans, comprenant une base de cinq ans et deux options (3+2 ans).

Le contrat se concentre sur le soutien des dispositifs TESS de l'armée américaine, qui permettent des simulations d'engagements militaires pour les armes, les véhicules et les systèmes d'aviation. Cette attribution complète l'ordre de travail existant de V2X d'une valeur de 3,7 milliards de dollars pour les Solutions de Préparation à l'Entraînement des Combattants.

V2X maintiendra et modifiera les produits TESS pour s'assurer qu'ils restent à jour avec l'évolution des systèmes d'armement, améliorant ainsi les capacités d'entraînement en direct de l'armée et soutenant les objectifs de sécurité nationale.

V2X (NYSE: VVX) hat eine Position im Vertrag Lot 1 des Bridge to Enduring Synthetic Training Environment Tactical Engagement Simulation Systems (BEST MAC) gesichert, der auf 921 Millionen Dollar geschätzt wird. Der Vertrag erstreckt sich über einen Zeitraum von 10 Jahren, einschließlich einer fünfjährigen Basis und zwei Optionen (3+2 Jahre).

Der Vertrag konzentriert sich auf die Unterstützung der TESS-Geräte der US-Armee, die simulierte militärische Trainingsszenarien für Waffen, Fahrzeuge und Luftfahrtsysteme ermöglichen. Diese Auszeichnung ergänzt den bestehenden 3,7 Milliarden Dollar umfassenden Auftrag von V2X für Lösungen zur Einsatzbereitschaft von Kämpfern.

V2X wird die TESS-Produkte warten und modifizieren, um sicherzustellen, dass sie mit den sich entwickelnden Waffensystemen Schritt halten, die Live-Trainingsfähigkeiten der Armee verbessern und die nationalen Sicherheitsziele unterstützen.

Positive
  • Secured $921 million BEST MAC contract with 10-year duration
  • Complements existing larger $3.7 billion Warfighter-Training contract
  • Strategic position as prime contractor for Army's largest training services program
Negative
  • Contract execution dependent on Army exercising optional periods
  • IDIQ contract structure means revenue not guaranteed

Insights

V2X's latest $921 million IDIQ contract win represents a significant business expansion in the military training support arena. This award, supporting the Army's Tactical Engagement Simulation Systems, delivers substantial backlog enhancement representing approximately 57% of V2X's current market capitalization.

The contract's structure - a 5-year base period with 5 years of options - provides excellent revenue visibility and stability through 2035, though as an IDIQ vehicle, actual task order values will determine realized revenue. Particularly impressive is how this award complements V2X's existing $3.7 billion Warfighter-Training Readiness Solutions contract, demonstrating the company's ability to expand its footprint within existing customer relationships.

V2X's positioning as the prime contractor for the Army's largest training services program creates natural synergies for this new work, potentially enabling operational efficiencies across both contracts. The company's specialization in military readiness capabilities represents a strategic focus on a relatively stable segment of defense spending that typically maintains funding priority even during budget constraints.

This contract strengthens V2X's competitive moat in simulation-based training systems, a domain seeing increased emphasis as military forces worldwide prioritize cost-effective training methods that maximize readiness while minimizing equipment wear and operational costs.

This $921 million contract win materially improves V2X's growth outlook and revenue visibility. With a current market cap of $1.6 billion, this single award represents a potential 57% of the company's entire market value, making it a substantial catalyst.

The 10-year performance period (5-year base plus two options) provides exceptional long-term revenue stability - a premium characteristic for investors in the defense sector where budget cycles and political changes can introduce uncertainty. While the IDIQ structure means the ceiling value isn't guaranteed, V2X's established position with the Army suggests strong task order potential.

This award demonstrates V2X's execution on its strategy to expand existing customer relationships, evidenced by how this contract complements their $3.7 billion Warfighter-Training program. This contract-stacking approach typically yields higher margins through shared overhead costs and operational efficiencies.

The training systems market represents a resilient segment within defense spending as it directly impacts readiness without the massive capital expenditures of weapons platforms, making it less vulnerable to budget cuts. For investors, this award significantly enhances V2X's investment thesis by providing substantial backlog growth and demonstrating the company's competitive advantage in securing follow-on business within their core competencies.

RESTON, Va., March 26, 2025 /PRNewswire/ -- V2X (NYSE: VVX) Inc., announced its selection as a winner on the Bridge to Enduring Synthetic Training Environment Tactical Engagement Simulation Systems (TESS) Multiple-Award Contract (BEST MAC) Lot 1. This contract supports the U.S. Army's TESS devices, a vital component of its live training capabilities, by extending their product life and ensuring they meet the Army's evolving requirements.

The indefinite-delivery, indefinite-quantity contract includes a ten-year period of performance consisting of a five-year base period and two options (three-year option and a two-year option), with a ceiling value of $921 million.

Under this award, V2X will support the U.S. Army's TESS products that are designed to enable simulated engagements, either as weapons or targets, during live collective military training exercises. These devices include weapons, vehicles, and aviation systems. Existing TESS must be modified to stay relevant as changes to weapon systems evolve.

"The BEST MAC contract perfectly complements the work we perform under our $3.7 billion Warfighter-Training Readiness Solutions task order," said Jeremy C. Wensinger, President and Chief Executive Officer at V2X. "Both programs demonstrate our commitment to the warfighter and our expertise in delivering readiness capabilities that enhance Army training and strengthen national security."

"As the prime contractor for the Army's largest training services program, V2X is uniquely positioned to deliver superior services that align with BEST MAC future requirements," said Ken Shreves, Senior Vice President of Mission Support at V2X. "Our dedication to the Army goes beyond operational excellence—we are committed to reinforcing national security through mission-critical initiatives and ensuring troops are prepared worldwide."

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 total value of V2X's (VVX) new BEST MAC contract with the U.S. Army?

The BEST MAC contract has a ceiling value of $921 million over a potential 10-year period.

How long is the duration of V2X's (VVX) BEST MAC contract?

The contract spans 10 years total, with a 5-year base period and two option periods (3-year and 2-year).

What is the scope of V2X's (VVX) BEST MAC contract with the Army?

V2X will support and modify the Army's Tactical Engagement Simulation Systems (TESS) for weapons, vehicles, and aviation training systems.

How does the BEST MAC contract align with V2X's (VVX) existing Army contracts?

It complements V2X's existing $3.7 billion Warfighter-Training Readiness Solutions task order, strengthening their position in military training services.
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