VSE Corp. gets Navy contract worth up to $1.5B

ALEXANDRIA, Va.

VSE Corp. said Monday that its global division has been awarded a contract that could be worth as much as $1.5 billion over five years if all options are exercised.

The U.S. Naval Sea Systems Command awarded the Alexandria, Va.-based VSE a one-year $277 million contract for maintenance and upkeep on naval vessels bought, sold, or otherwise transferred to foreign military sales customers through the International Fleet Support Program. The contract is an indefinite delivery, indefinite quantity contract and if all options are used could stretch to five years.

Services to foreign customers and allies will include design, configuration management, field engineering, maintenance planning, maintenance, spare parts support, training, casualty and depot-level repair.

VSE has been performing ship transfer and follow-on technical support for the Naval Sea Systems Command since 1995. During that time, VSE has managed the successful transfers of 44 ships ahead of schedule and under budget, and provided service to 24 nations on six continents.

VSE currently is supporting the transfer of the Coastal Mine Hunters ex-USS Oriole and ex-USS Falcon to Taiwan.

Shares of VSE Corp. rose 36 cents, or 1.4 percent, to $26.24. Shares have traded between $20.99 and $39.93 in the past year, peaking in late October and slipping 34 percent since.