Versar Inc. (NYSEMKT: VSR) Inks New $500 Million Contract

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Versar Inc. (NYSEMKT: VSR) has won a contract worth $500 million from the U.S. Air Force. The contract was awarded in a competitive selection process and it relates to architectural-engineering services.

According to Versar Inc. (NYSEMKT: VSR), the U.S. Air Force contract was awarded to its 100% owned subsidiary called J.M. Waller Associates. The work will be performed by VSR on behalf of the Air Force Civil Engineer Center (AFCEC).

Details of the contract

Versar shared some details of the contract from the U.S. Air Force and said it consisted of providing multidisciplinary environment project services. Those services include project planning, programming and environmental restoration among others.

Contract period

Versar Inc. (NYSEMKT: VSR) said the multiyear contract will run for five years, but additional work stretching for up to another two years may be awarded to the company.

It is worth pointing out that the latest contract comes as follow-on to the AFCEC 4PA-E08 contract that Versar previously had with the U.S. Air Force. In the latest contract, the work is majority supporting the worldwide environmental program of AFCEC.

Commenting on the latest AFCEC contract, Versar’s CEO, Tony Otten, said that the team at VSR was pleased to have another opportunity to serve one of their long-standing clients. He said that they are committed to helping AFCEC to accomplish several critical tasks as described in the program.

Another government contract for Versar Inc. (NYSEMKT: VSR)

Earlier this year, the Federal Aviation Administration (FAA) awarded Versar a contract worth $47.8 million. The contract relating to security systems design and integration extended the life of the earlier contract between the two agencies by two years and several months.

At that time, Versar’s CEO Tony Otten said he believed that their capabilities were aligned to the demands of the contract.

Financials

Versar Inc. (NYSEMKT: VSR) generated revenue of $36.5 million in F3Q2016, which declined from $39.8 million in the like quarter a year ago. It posted EPS loss of $0.34 compared to EPS profit of $0.03.

VSR also recorded a drop in its funded backlog to $158 million from $179 million.

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