ORIGINAL: Mission Ready Awarded New Contracts for an Estimated $127 Million with a Ceiling of $435 Million
2020-09-18 08:05 ET - News Release
VANCOUVER, British Columbia, Sept. 18, 2020 (GLOBE NEWSWIRE) -- Mission Ready Solutions Inc. (“Mission Ready” or the “Company”) (TSXV: MRS) is pleased to announce that, through its wholly-owned subsidiary, Unifire, Inc., the Company has been awarded a total of 7 government contracts – for personal protective equipment consisting of disposable level 2 and level 3 isolation gowns (the “Products”) – with an estimated value of $127,878,307 and a maximum value of $435,723,020 (the “C&TContracts”) to be fulfilled over a 12-month period.
As part of its COVID-19 pandemic response, the Contracts were awarded to the Company through the United States Defense Logistics Agency Troop Support Clothing & Textiles (“DLA C&T” or the “Contractor”) supply chain to facilitate the delivery of the Products to the United States Department of Health and Human Services (“HHS”) for the Strategic National Stockpile (“SNS”).
Fulfillment of Delivery Orders
The Company will facilitate the fulfillment of delivery orders through its established network of Berry-compliant (Made in America) product manufacturers and vendor partners (“Suppliers”) – The Products will ship directly from the Suppliers to HHS.
Prior to being awarded the C&T Contracts, the Company conducted extensive due diligence to source, vet and verify the proposed Suppliers and their respective products to ensure full compliance with the terms of the Contracts upon award. The Company is confident in the ability of its Suppliers to fulfill the Contracts in accordance with the forecasted production requirements and anticipated delivery schedules. During the solicitation stage, the Company submitted proposals in response to individual government solicitations (“Solicitations”) relative to each contract that it was awarded. Pursuant to the requirements of each Solicitation, the Company’s proposals included detailed information related to the Product specifications, Product availability, track-record of the Product manufacturers, delivery timeframes, among other criteria in support of the Company’s ability to meet the Solicitation requirements. Upon validation of the Company’s proposals by DLA C&T, on September 14, 2020, the Company was awarded the C&T Contracts. The Company will commence fulfillment of the C&T Contracts immediately upon receipt of the initial purchase order(s) (“Delivery Orders”) which, pursuant to the terms of the C&T Contracts, will be submitted to the Company on or before October 8, 2020.
Value of C&T Contracts
Maximum - $435,723,020
The maximum value of the Delivery Orders that may be submitted to the Company during the 12-month term (the “Term”) is set at $435,723,020 (the “Contract Ceiling”).
Estimated - $127,878,307
The estimated value of Delivery Orders to be submitted to the Company during the Term is equal to $127,878,307 (the “Estimated Value”).
For clarity, the Contract Ceiling represents the maximum value of Delivery Orders that may be issued to the Company pursuant to the C&T Contracts. The Estimated Value is based on the Contractor’s estimate of the Delivery Orders to be issued to the Company during the Term. Though the Company is prepared to facilitate the fulfillment of Delivery Orders in quantities up to the Contract Ceiling, there can be no assurance of the actual value of Delivery Orders to be received by the Company during the Term.
Gross Margins
The gross margin on revenue generated pursuant to the Contracts is not expected to differ materially from the Company’s historical gross margins relative to its government contracting operations.
Delivery Timeline
All delivery orders pursuant to the Contracts are to be fulfilled between September 2020 and September 2021.
Payment Terms
Net 30 – The Defense Logistics Agency will remit payment to Unifire within 30 days of delivery of the products pursuant to each delivery order.
The Company’s ability to demonstrate adequate capital availability to fulfill delivery orders continues to contribute to its success in winning contracts. The Company will utilize commercially-competitive-rate financing provided by its existing capital partners to facilitate fulfilment of the delivery orders.
Marcus Treiber, Chief Operating Officer of Mission Ready, states, “We are humbled to receive these significant awards, and honored to contribute meaningfully to the pandemic response, helping to safeguard the lives of our fellow citizens. Additionally, we are thrilled to be exceeding our growth projections and delivering on our commitment to build sustainable value for our shareholders.” Treiber continues, “Though we are excited to continue leveraging our status as a Special Operations Equipment Tailored Logistics Support prime vendor, Unifire continues to demonstrate its ability to win significant awards through unrelated avenues – these sizeable contract awards and the recently announced FEMA award being prime examples – which really is a testament to the vastness of the opportunities within the world of government contracting.”
The related announcement made by the United States Department of Defense, dated September 14, 2020, can be viewed at the following link:
https://www.defense.gov/Newsroom/Contracts/Contract/Article/2347324/
Monetary values referenced herein have been converted from US currency (USD) to Canadian currency (CAD) using an exchange rate of 1.32.
About Mission Ready Solutions Inc.
Mission Ready specializes in providing comprehensive government contracting solutions through its privileged access to a host of government contracting vehicles including its Special Operational Equipment (“SOE”) Tailored Logistics Support (“TLS”) contract administered by the United States Defense Logistics Agency (“DLA”), and Multiple Award Schedule contracts administered by the United States General Services Administration (“GSA”).
Mission Ready’s wholly-owned subsidiary, Unifire, Inc. (“Unifire”), is one of six companies, globally, authorized to provide equipment and designated services under DLA’s SOE TLS program. Unifire is a designated Small Business and an industry-leading manufacturer and distributor of over 1.5 million fire, military, emergency, and law enforcement products. As an incumbent awardee of the SOE TLS contract, with extensive knowledge and experience in providing solutions to the US Federal Government, Unifire utilizes its highly-efficient, scalable technology infrastructure to provide procurement solutions for program managers, military and federal contracting offices, base supply centers, and other governmental supply agencies.
Mission Ready trades on the TSX Venture Exchange under the symbol MRS.
For further information, visit MRSCorp.com or contact:
Investor Relations
T: 1.877.479.7778 – Ext 5
E: IR@MRSCorp.com
Mission Ready Solutions Inc.
(Signed “James A. Marks”)
James A. Marks
Chief Executive Officer
Ph: +1 877.479.7778
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Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule", "may", "will", "could", "might", "should" or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by Mission Ready Solutions Inc. as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Mission Ready Solutions Inc. to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Mission Ready Solutions Inc. does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities laws.