The Defense Department awarded Vectrus, Inc. [VEC] one re-compete contract for support services at an Air Force Base and published a Notice of Intent to extend an existing Kuwait base support contract performed by the company, Vectrus said Friday.
Vectrus has held a contract to provide base operations support services at Maxwell-Gunter Air Force Base, Ala. since 2009 and won a re-compete for these services. The new contract has a possible duration of seven years including four one-year options and two one-year incentive option periods. The company said $37 million was obligated at award time and the work is expected to be completed by March 30, 2018.
The contract work will have Vectrus provide base operations support services including maintenance on foreign object damage, transient maintenance, static display maintenance, resource management, communications and information technology, publishing, installation management, operations, installation engineering, emergency management, airfield management, supply, transportation, community services and human resources.
“This was a great achievement for our team; we worked diligently to provide our Air Force client with an industry leading solution at an affordable price. We look forward to continuing the delivery of service and performance excellence to our Air Force client over the next several years,” Chuck Prow, president and CEO of Vectrus, said in a statement.
Separately, the U.S. Army published a Notice of Intent on Thursday to award a modification to extend the Kuwait Base Operation and Security Support Services (K-BOSSS) contract with only one source, which is currently performed by Vectrus.
The extension is for one-year, lasting from late March 2017 to March 2018. It also includes an evaluated nine-month option through late Dec. 2018 and a further evaluated three-month option through late March 2019.
The Army Contracting Command – Rock Island awarded the original contract for one base year plus four option periods. During the follow-on source selection the senior procurement official approved earlier contract extensions. The K-BOSSS extension has not yet been negotiated or finalized
The modification would continue critical base operations support and security support services throughout the Kuwait area of responsibility including forms, publications, and reproductive services; Army postal operations; operations; logistics; information management; public works; environmental services; medical administrative support; installation services; security services; fire services; and emergency services.
“Our 2017 financial guidance issued on March 1, 2017, anticipated an extension of our existing K-BOSSS contract well into the third quarter. This announcement will likely result in a full-year financial contribution from K-BOSSS and we expect to update guidance upon finalization of the extension,” Matt Klein, chief financial officer of Vectrus, said in a statement.
Vectrus noted that in 2016, the K-BOSSS program contributed approximately $438 million dollars, or 37% of revenue, to the company.