Friday, February 7, 2020

Vectrus (VEC)

U.S. Army Determines LOGCAP V Bid Prices Reasonable, Will Proceed with Original Awardees

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

U.S. Army Determination. On February 5th, the U.S. Army filed a status report with the U.S. Court of Federal Claims regarding its reexamination of bid prices under the LOGCAP V award. The Army determined the bid prices of the winning awardees are reasonable. Hopefully, this will allow Vectrus to move forward on its awards under LOGCAP V.

Proceeding with Original Awardees. According to the status report, the Army "intends to proceed with the previously awarded LOGCAP V contracts on or after March 2nd." Recall, in April 2019, Vectrus was awarded LOGCAP V contracts for the CENTCOM and...

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