VSE Corporation (NASDAQ: VSEC) has won a one-year $277 million cost-plus-award-fee, indefinite-delivery and quantity contract from the U.S. Naval Sea Systems Command. The contract options, if exercised, have a potential value of $1.5 billion over a five-year period.
Per the contract, VSE will provide continuous lifecycle support for naval vessels bought, sold or transferred to Foreign Military Sales customers through the International Fleet Support Program. This includes design, configuration management, maintenance, engineering, training and depot-level repair.
Additionally, the VSE N*STAR team, which includes companies such as Raytheon, CSC, SAIC, Thales Naval, Inc, Lockheed Martin, BAE Systems, General Dynamics, and American Systems Corporation, will also provide technical, procurement, engineering, test, inspection, equipment upgrade installation and overhaul support services. No funds are being obligated at this time.