Vectrus CEO says company sees opportunity to grow work with Navy in INDOPACOM region

By Marjorie Censer / March 15, 2021 at 11:50 AM

​​​​​​​The chief executive of Vectrus said this month the company is optimistic it will be able to expand its work through the Army's Logistics Civil Augmentation program in the Indo-Pacific Command region, particularly with the Navy.

In an interview with Inside Defense, Chuck Prow said he can't discuss specific missions in the region.

"But what I can say is the Navy has already utilized LOGCAP once. We have an ongoing task with the Navy," Prow said. "INDOPACOM is essentially a Navy-led set of missions -- not totally, but by and large --so we're really bullish on continuing to work with the Navy on a number of areas where LOGCAP might be a vehicle of choice."

Prow said the company has "the opportunity to pick up brand-new missions" in the region, adding that Vectrus is looking at work in the Philippines, Singapore, the South China Sea and Taiwan.

Vectrus has confirmed the transition work for LOGCAP in the region is going more slowly than hoped because of the ongoing global pandemic.

"INDOPACOM is the area that has continued to be slower than we would like it from a business perspective, but it's understandable given the COVID realities," Prow said this month, noting the company is planning for a transition toward the end of 2021 or early 2022. "We'd like to think we can make that go quicker, especially given the bullish news we've all been given . . . about the vaccine."

Meanwhile, he said the company, which bought HHB Systems and Zenetex in recent months, is still actively pursuing acquisitions.

He said the latest deals have produced a "much more balanced business in terms of the breadth of clients that we now serve."

"I think there's room to expand in [the] State [Department], I think there's room to expand maybe into NASA . . . and there's plenty of room to expand in the intelligence community and in the foreign military sales activity," Prow said.

He predicted ongoing consolidation, noting the Amentum-DynCorp International deal, for instance.

"Over time, our particular market will continue to consolidate," Prow said. "I'd like to think we'll play an active role in that consolidation, but it's going to play out over time."

Prow said he's optimistic about the company's future prospects, particularly as COVID-19 restrictions decline. He said the company has not lost work in its backlog; "the revenue has just moved to the right."

Vectrus is well positioned, even if the defense budget declines, according to Prow.

"Most of our funding is [operations and maintenance] funding, which traditionally has stayed relatively stable," he said.

 

Release date

Monday, March 15, 2021