Vectrus issues statement on Army's intent to extend K-BOSSS contract
Vectrus announced that the U.S. Government published a Notice of Intent to award a modification to extend the existing Kuwait Base Operation and Security Support Services contract, also known as K-BOSSS, performed by Vectrus Systems. The Period of Performance for the extension would be from Mar. 29, 2017 to Mar. 28, 2018, with an evaluated nine-month option of Mar. 29, 2018 through Dec. 28, 2018 and an evaluated three-month option of Dec. 29, 2018 through Mar. 28, 2019. The proposed modification will continue critical base operations support and security support services throughout the Kuwait area of responsibility including forms, publications, and reproductive services; Army postal operations; operations; logistics; information management; public works; environmental services; medical administrative support; installation services; security services; fire services; and emergency services. The extension has not been negotiated and finalized. "Our 2017 financial guidance issued on March 1, 2017, anticipated an extension of our existing K-BOSSS contract well into the third quarter," said Matt Klein, CFO of Vectrus. "This announcement will likely result in a full-year financial contribution from K-BOSSS and we expect to update guidance upon finalization of the extension." In 2016, the K-BOSSS program contributed approximately $438 million dollars or 37% of revenue.