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VSE Corp. to Support U.S. Navy FMS Program

VSE Corporation (VSEC) is a large engineering company that provides support services to a variety of government and commercial customers although the Federal government remains their largest client. They perform a great deal of maintenance for aviation, ground vehicles and ships as well as technical analysis and support for IT, logistics planning and Research & Development efforts.

A program that they have executed for several years is to aid the U.S. Navy in preparing for turnover Foreign Military Sales (FMS) of former U.S. ships to their new owners. The U.S. will sell older ships that they no longer want to use as well as ones deliberately built for the overseas customer in U.S. yards. VSE works with the International Fleet Support Program managed by the Navy’s Sea Systems Command (NAVSEA).

The company was recently awarded a five year contract with a base value of about $277 million. If the four other option years are executed the contract will have a value of almost $1.5 billion. This contract will continue their engineering, maintenance and support for ships sold to overseas governments.

VSE will provide design, configuration management, field engineering, training and depot level repair among other services for the foreign customers. One key part of the contract is to make sure the ships are ready to be transferred something that VSE has done for over forty ships since 1995.

Contracts like this often do not make the headlines despite their large values as they are primarily service oriented rather then actually buying a system or manufacturing a product. The U.S. military awards large amounts of specific service contracts like this every year and their total value is in the tens of billions.

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