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VSE’s Mo Gauthier on New Army Deal

VSE Corporation (NASDAQ: VSEC) claimed a prime contract, one of several new multiple award omnibus contracts to continue work under the U.S. Army CECOM’s Rapid Response (“R2”) replacement program “Rapid Response-Third Generation (R2-3G).”

“VSE will compete for task orders under the Indefinite Delivery/Indefinite Quantity (IDIQ) R2-3G contract over the five-year period of performance. VSE’s Federal Group and its Communications Engineering Division (CED) will perform and manage the work, which is anticipated to include an undetermined amount of follow-on work from the original R2 contract, in addition to potential new requirements. The VSE Team consists of multiple subcontractors to support contract requirements.”

“We believe this award following protests filed by VSE and other offerors underscores both the strength of our proposal and our exceptional past performance under the R2 contract,” said VSE CEO Maurice “Mo” Gauthier. “We are pleased that with this new award, we are in the position to offer and expand our technical support services to the Warfighter. However, given uncertain DoD work requirements, the expanded number of awardees, and resulting uncertainty of the amount of work that we will either perform directly or manage as subcontract work, it is very difficult to assess our level of future revenues and the potential financial impact on the company. We look forward to continuing to work with our Army customers and the ongoing success of this important Army program.”

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