Facility and logistics services provider Vectrus (NYSE: VEC) will continue to prioritize information technology and network communications as areas of pursuit for potential growth as the company looks ahead to 2017, its newly-appointed CEO has told GovCon Wire.
Colorado Springs-based government services contractor Vectrus has $1.5 billion in bids for new work submitted awaiting award according to its last earnings call in November and “billions more” in its business development pipeline, Chuck Prow told us.
In several earnings calls since its 2014 launch, company executives have identified IT and network communications as core areas of investments for Vectrus to complement its facility and logistics services work.
“In essence, we will look to fuse the physical and digital aspects of our client’s facility and logistics missions, ” in his first media interview since he took on the new role two weeks ago.
“We will have a dedicated focus on growth and development in order to enhance the value proposition of Vectrus, create greater value for our existing clients, and more opportunities for our employees.”
As covered here Dec. 6, the former IBM (NYSE: IBM) government leader and nearly two-decade GovCon market veteran has joined Vectrus as CEO almost two years after the company spun out of its former parent Exelis.
Vectrus expects to report $1.19 billion-$1.2 billion in revenue and $2.12-$2.28 earnings per share for 2016 when the company reports full-year and fourth quarter results in March.
Prow cited the seven-decade history of Vectrus in government services as part of Exelis and ITT Corp. (NYSE: ITT) prior to that as an appealing factor along with what he termed a reputation as a company “that got things done.”
“As I was doing my due diligence I spoke with current clients and the feedback I heard was about the passion Vectrus had for the client missions. That was a consistent theme I heard in the marketplace and that was very attractive me, ” he said.
Prow gained experience in the supply chain market through manufacturing industry-related roles at Coopers & Lybrand and PwC prior to IBM and cited that background as an area he plans to rely on at Vectrus, which holds supply chain and other logistics-related contracts across the world.
“Since coming to D.C. in 1999, I’ve been able to lead organizations across each facet of government, civilian, defense, and state and local. I’ll look to bring that experience in combining IT and operational capabilities to help our clients transform and perform their missions, ” Prow said.
“My background and the capabilities of Vectrus can help enhance our facilities and logistics offerings, plus strengthen our IT competencies to create a higher-value platform that includes IT-enabled facility and logistics capabilities.
“The long and short of it is we see the market continuing to improve and also know what we have to do to maintain our cost competitiveness, while providing differentiation and creating more value for our clients and shareholders.”