February 5, 2013
On Tuesday, government contractor VSE (NASDAQ: VSEC ) announced it has won an indefinite delivery/indefinite quantity contract to provide "program and technical support services for Security Assistance Projects administered by the U.S. Coast Guard Foreign Military Sales (FMS) Program."
The program in question is one through which the Coast Guard disposes of cutters and boats that are past their prime. It does so by selling or otherwise transferring them to the navies and coast guards of foreign states.
VSE's role will be to support the Coast Guard's disposal efforts, providing "financial analysis, engineering, industrial, technical, logistics, and transportation, warehouse and supply, and training services" to prepare the boats for transfer and prepare foreign crews to operate them.
The contract awarded has a one-year base term, plus four one-year options for renewal. If all options are exercised, it could be worth in excess of $99 million over five years.