VSE Granted $74 Million Delivery Order to Support Taiwan's Maritime Defense Efforts

VSE Corporation

disclosed Thursday that it was granted a cost-plus award fee delivery order under its Foreign Military Sales (FMS) Naval Ship Transfer and Repair (N*STAR) contract through the Naval Sea Systems Command (NAVSEA) International Fleet Support Program. According to the company, the delivery order has a 16-month period of performance, as well as, a possible value of a maximum of $74 million. VES said that under this delivery order, it would operate the industrial work, logistics and crew training required to reactivate ex-USS Taylor (FFG 50) apart from ex-USS Gary (FFG 51) for the Taiwan Navy. The company indicated that the industrial work was being performed in Charleston, SC. The company stated that every ship would get a Dry-Docking Selected Restricted Availability (DSRA) during which all hull, mechanical and electrical systems and selected combat systems would be reactivated. The company added that it would be fully tested to ensure the ships were returned to full operating capability. The company also indicated that the crews in Taiwan would get training on maintenance and operation of the FFG systems that included on-the-job training, training in the classroom, and underway operational exercises. Federal Services Group President, Brown, commented, "VSE and our entire N*STAR Team remain committed to providing superior engineering, logistics and training services to our foreign navy allies under our NAVSEA FMS contract. These delivery orders allow us to provide vital support to foreign navies to achieve their maritime mission requirements." On Thursday, the stock dipped 1.3 percent on Thursday.