Nice contract and Stockholder holder's meeting tomorrow:
VSE Business Unit Awarded Acquisition Support Contract
ALEXANDRIA, Va., May 6 /PRNewswire/ -- VSE (Nasdaq: VSEC) reported today that its VSS business unit was awarded a $73.7 million cost-plus-fee U.S. Navy contract to provide acquisition support services for the Naval Competitive Sourcing Support Office. The multiple-award contract is an indefinite delivery, indefinite quantity (ID/IQ) contract, and accordingly, the actual work to be performed depends on customer requirements and other factors, some of which are not definitized. VSS estimates its potential five-year revenues under the contract at about $22.5 million, subject to future requirements.
The purpose of the contract is to support the Naval Competitive Sourcing Support Office in assisting Navy and Marine Corps activities in identifying competitive opportunities and other alternatives to reduce infrastructure costs by obtaining the best public or private source for a required item of supply or service. VSS will assist in preparing Commercial Activity (A-76) reports for Navy and Marine Corps activities to document the results of privatization and outsourcing studies and comparisons. VSS will also assist in identifying potential outsourcing candidates, planning strategies for regionalization, assessing commercial business capability, defining business units, providing required documentation, preparing acquisition strategies, and providing other technical support as required.
VSE provides diversified services and products to the engineering, energy and environment, health care, information technology, and defense services markets. VSE's principal customers are agencies of the U.S. Government and other prime contractors. VSE subsidiaries and divisions include BAV, CMstat Corporation, Energetics Incorporated, Human Resource Systems, Inc., and VSS. VSE has about 1,200 employees providing services and products from more than 20 locations across the United States and around the world.
VSE reported revenues of about $156 million in 1997. Net income from VSE's engineering, logistics, management, and technical services business segment, including VSS operations, was about $2.6 million in 1997, while VSE's software products and services segment reported a net loss of about $4.0 million, resulting in a consolidated VSE loss of $1.6 million ($.68 a share) for the year. |
