Vectrus Statement on Army's Notice of Intent to Extend the K-BOSSS Contract
COLORADO SPRINGS, Colo., March 17, 2017 /PRNewswire/ -- Vectrus, Inc. (NYSE: VEC), announced today that the U.S. Government published a Notice of Intent to award a modification to extend the existing Kuwait Base Operation and Security Support Services contract, also known as K-BOSSS, performed by Vectrus Systems Corporation.
The Period of Performance for the extension would be from Mar. 29, 2017 to Mar. 28, 2018, with an evaluated nine-month option of Mar. 29, 2018 through Dec. 28, 2018 and an evaluated three-month option of Dec. 29, 2018 through Mar. 28, 2019.
The proposed modification will continue critical base operations support and security support services throughout the Kuwait area of responsibility including forms, publications, and reproductive services; Army postal operations; operations; logistics; information management; public works; environmental services; medical administrative support; installation services; security services; fire services; and emergency services.
The extension has not been negotiated and finalized. "Our 2017 financial guidance issued on March 1, 2017, anticipated an extension of our existing K-BOSSS contract well into the third quarter," said Matt Klein, chief financial officer of Vectrus. "This announcement will likely result in a full-year financial contribution from K-BOSSS and we expect to update guidance upon finalization of the extension."
In 2016, the K-BOSSS program contributed approximately $438 million dollars or 37% of revenue.
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 facility and logistics services, and information technology and network communication 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 about 5,600 employee spanning 143 locations in 18 countries. In 2016, Vectrus generated sales of $1.2 billion. For more information, visit our website at www.vectrus.com or connect with us on Facebook, Twitter, LinkedIn, and YouTube.
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Mike Smith, CFA
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