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Vectrus announces contract modifications worth $352 million

VVX | March 29, 2016

COLORADO SPRINGS, Colo., March 29, 2016 /PRNewswire/ -- Vectrus Systems Corporation, a wholly-owned subsidiary of Vectrus, Inc. (NYSE: VEC), has received a more than $329 million modification to the U.S. Army base operations and security support services contract in Kuwait. The modification runs through Dec. 28, 2016. The work will be conducted in the Kuwait area of operations. Army Contracting Command at Rock Island, Ill., is the contracting activity.

"The Kuwait Base Operations and Security Support Services contract provides full spectrum base operations, training and equipping capability for service members that will generally transition to operations in the Middle East or Central Asia," said Ken Hunzeker, chief executive officer at Vectrus. "This contract modification allows Vectrus to continue to provide exceptional value through strong performance on the largest U.S. military footprint in the Middle East."

In addition, Vectrus Systems Corporation has been awarded a more than $22 million modification to the previously awarded Turkey-Spain Base Maintenance Contract (TSBMC) to support the contingency personnel surge for Operation Inherent Resolve. Work will be performed at Incirlik Air Base, Turkey, and is expected to be complete by March 27, 2017. The Air Force Installation Contracting Agency, Kapaun Air Station, Germany, is the contracting activity.

"The $22 million contract modification is a continuation of an August 2015, modification to the TSBMC worth nearly $12 million to provide support to Operation Inherent Resolve," said Hunzeker.

"These modifications are longer in duration, with higher funding than our last modifications, which provides greater revenue and cash flow visibility, while adding to funded backlog," said Matt Klein, chief financial officer at Vectrus. "We considered the potential for these modifications and factored them into our 2016 guidance ranges."

About Vectrus
Vectrus is a leading, global government services company with a history in the services market that dates back more than 70 years. The company provides infrastructure asset management, information technology and network communication services, and logistics and supply chain management services to U.S. government customers around the world. Vectrus is differentiated by operational excellence, superior program performance, a history of long-term customer relationships, and a strong commitment to their mission success. Vectrus is headquartered in Colorado Springs, Colo., and includes more than 6,000 employees spanning 132 locations in 18 countries. In 2015, Vectrus generated sales of $1.2 billion. For more information, visit our website at http://www.vectrus.com or connect with us on Facebook, Twitter, LinkedIn, and YouTube.