Vectrus CEO says, despite LOGCAP V court cases, company is 'using this time to prepare'

By Marjorie Censer

The LOGCAP V battle now being waged in the U.S. Court of Federal Claims won't create a timing problem for Vectrus, which won two spots on the coveted program, according to its chief executive.

In an interview with Inside Defense last week, Chuck Prow said the company has been pleased with news on the program to date, including the original awards, the decision of the Government Accountability Office to reject one protest and the schedule for the pending court cases.

"The timeline that I see is not inconsistent with the time frame that we had planned for," Prow said. "I have not seen . . . an unusual amount of delay."

Prow said Vectrus is "using this time to prepare" for the program, including refining its "human capital model."

Meanwhile, the company earlier this year acquired Advantor Systems, which specializes in integrated electronic security systems for the federal government. Vectrus said the company provides integrated C3 networked services to U.S. Forces Korea, among other work.

Last year, Vectrus picked up SENTEL, which focuses on logistics and supply chain management, engineering and advanced technology and intelligence mission support.

Prow said last week the company is open to additional acquisitions that would bolster its capabilities or customers. Vectrus has potential to build its work with intelligence agencies and the State Department as well as to win work for other governments through foreign military sales, he added.

Additionally, "with the LOGCAP results, we're going to be a significant player in the [U.S. Indo-Pacific Command] region for a long time," Prow said. "That actually provides us an opportunity to expand the aperture of the potential acquisitions that we’re considering."

Still, Prow emphasized that Vectrus will remain focused on its core specialties of managing bases, supply chains and IT networks.

"There is plenty of market opportunity in our core competency that I see no need to diversify into things that are not core to us," he added.

Vectrus is increasingly seeking to sell its work on an "outcome" basis, which Prow said has made significant strides in recent year.

"The more that we begin to operate and consume both services and goods on an outcome or on an as-a-service basis, the more efficient we’re going to be, the more effective we’re going to be," Prow said, noting it will help Vectrus bolster its profit margins.

He said he's already seeing progress, adding that three years ago, Vectrus had no contracts operating on an outcome basis, and it now does.

Release date

Monday, September 23, 2019