During a recent conference call with investors and analysts, Vectrus President, CEO & Director Charles Prow gave information and answered questions about LOGCAP V and other overseas contracts:
“With respect to LOGCAP V, we continue to phase in operations and transition to the new contract and task orders, albeit at a slower pace due to COVID-19-related travel and base restrictions. As we discussed in our last call, the original LOGCAP V, 180-day transition phase-in period has been elongated as a result of the global pandemic. We anticipate full operational capability on LOGCAP V task where we have incumbency by mid next year.
“LOGCAP V tasks that represent new scope are also progressing, but at a slower pace. We continue to be actively engaged with our clients and have received new task orders and/or evaluating others in both CENTCOM and INDOPACOM. Although these new tasks are smaller in size, they represent strategically important missions that provide a foundation for future growth. Further, we continue to see demand from clients outside the Army to utilize LOGCAP V program to support their critical mission requirements.”
“During the course of 2020, Vectrus received over $2 billion in awards, by delivering exceptional program performance to our clients, investing in our people and our capabilities to further raise our value proposition, and adhering to our growth strategy of conducting targeted campaigns designed to leverage our expertise and the value we deliver to our clients.
“In addition to the awards I mentioned earlier, we have announced a few weeks ago that Vectrus won a $196 million 5-year recompete contract to continue base operational support at Naval Station Guantanamo Bay in Cuba. The initial 2-year award of this outcome-based contract in late 2018 was an important strategic win for Vectrus that kicked off our Navy growth campaign, which, in aggregate, equates to over $0.5 billion of wins, not including wins of approximately $350 million through our new joint ventures. This award is currently under protest, and we look forward to providing even better client outcome with the new 5-year period of performance.
The INDOPACOM award under LOGCAP V has strongly positioned us for additional work in that region across our client portfolio. For example, during the third quarter, we won a $5 million task order under the Naval Global Contingency Services Multiple Award Contract to provide operation support services at United States Army Reserve at several locations in INDOPACOM.
“Additionally, as we discussed with you on our last call, we were awarded at a $529 million modification for our K-BOSSS program that extends the contract from September 2020 through September 2021, to support the transition of LOGCAP V CENTCOM task order.
“The LOGCAP contract and presence in INDOPACOM AOR already adds to our organic growth opportunities.
Other Questions Answered:
Joseph Anthony Gomes, NOBLE Capital Markets, Inc., Research Division – Senior Generalist Analyst : “Okay. One last one for me. You mentioned in your prepared remarks that you’ve been seeing some demand from clients outside the Army to use LOGCAP. I was just wondering if you provide just a little more color or detail on that.”
Charles L. Prow, Vectrus, Inc. – President, CEO & Director: “Sure. In the INDOPACOM area of operation, in particular, the Navy is the predominant service. And we’re working with our Navy clients to understand that contract vehicle, building some bridges between the Navy and the Army. And we really like the shape of the emerging Navy opportunity that could potentially use the LOGCAP contract as well. We have other contracts that we recently won in INDOPACOM as well, which are not LOGCAP. And I mentioned that in the prepared remarks. That are 100% because we now have presence in the theater, whereas in the past we did not have that type of presence.”
From Annual Report: Overseas Prime Contract Wins, Recompetes, Extensions
$6.4B (Ceiling) AFCAP V IDIQ1 contract vehicle: Provides base life support services, construction and commodities support worldwide.
June 2020 – May 2028
OASIS Pool 1: “Best in Class” IDIQ1 contract vehicle to provide Professional Services to U.S. government clients worldwide.
September 2020 – September 2024
$529M Kuwait K-BOSSS Extension: The K-BOSSS contract currently is exercised through September 28, 2021. K-BOSSS supports geographically-dispersed locations within the State of Kuwait, including several camps and a range training complex.
September 2020 – September 2021
$117M Operation, Maintenance and Defense of Army Communications (OMDAC-SWACA) Extension: The OMDAC-SWACA contract provides for enterprise network capabilities and services support of the U.S. Central Command. Work is based in Kuwait with additional locations throughout Southwest Asia.
August 2020 – February 2021
$210M Isa Air Base, Bahrain: base operations support services at Isa Air Base.
September 2020 – September 2028
$45M NSF Romania BOS: base operations support services at Naval Support Facility Deveselu.
June 2020 – May 2028
$196M Naval Station Guantanamo Bay (NSGB)2: base operations support services at NSGB, Cuba.
December 2020 – November 2025