About VSE

VSE Corporation operates as a diversified aftermarket products and services company. The company provides repair services, parts distribution, logistics, supply chain management and consulting services for land, sea and air transportation assets to commercial and government markets. The company provides logistics and distribution services for legacy systems and equipment and professional and technical services to commercial customers; the government, including the United States Department of Defense (‘DoD’); and federal civilian agencies. The company’s operations include supply chain management solutions, parts supply and distribution, and maintenance, repair and overhaul (‘MRO’) services for vehicle fleet, aviation, maritime and other customers. The company also provides vehicle and equipment refurbishment, logistics, engineering support, data management and healthcare IT solutions, and clean energy consulting services. Segments The company operates through three operating segments: Aviation, Fleet, and Federal and Defense. Aviation The Aviation segment provides international parts supply and distribution, supply chain solutions, and component and engine accessory MRO services supporting global aftermarket commercial and business and general aviation customers. This business offers a range of services to a diversified global client base of commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators (‘FBOs’). In 2021, the company acquired Global Parts Group, Inc. (‘Global Parts’), which provides distribution and MRO services for business and general aviation (‘B&GA’) aircraft families. The acquisition expands the company’s existing B&GA focus and further diversifies the company’s product and platform offerings to include additional airframe components, while expanding the company’s customer base of regional and global B&GA customers. Fleet The Fleet segment provides parts distribution, inventory management, e-commerce fulfillment, logistics and other services to assist aftermarket commercial and government agencies with their supply chain management. Fleet segment operations are conducted under the brand Wheeler Fleet Solutions, which supports government and commercial truck fleets with parts, sustainment solutions and managed inventory services. Revenues for this business are derived from the sale of vehicle parts and mission critical supply chain services to support client truck fleets. Federal and Defense The Federal and Defense segment provides aftermarket refurbishment and sustainment services to extend and maintain the life cycle of military vehicles, ships and aircraft for the DoD. The segment provides foreign military sales services, engineering, logistics, maintenance, configuration management, prototyping, technology, and field support services to the DoD and other customers. The company also provides energy consulting services and IT solutions to various DoD, federal civilian agencies and commercial clients. In 2021, the company acquired HAECO Special Services, LLC (‘HSS’), which offers scheduled depot maintenance, contract field deployment and unscheduled drop-in maintenance for the DoD, primarily for the sustainment of the U.S. Air Force (‘USAF’) KC-10 fleet. Products and Services The company provides a broad array of capabilities and resources to support its clients’ aftermarket transportation assets, vehicle fleets, aircraft, systems, equipment and processes. The company focuses on creating value by sustaining and extending the life and improving the performance of the company’s client assets through core offerings in supply chain management, parts supply and distribution, MRO, equipment refurbishment, logistics and engineering. The company also provides IT solutions and energy consulting services. Typical offerings include supply chain and inventory management services; vehicle fleet sustainment programs; vehicle fleet parts supply and distribution; MRO of aircraft components and engine accessories; aircraft and airframe parts supply and distribution; engineering support for military vehicles; military equipment refurbishment and modification; ship MRO and follow-on technical support; logistics management support; sustainable energy supply and electric power grid modernization projects; IT infrastructure and data management; and IT data services for health and public safety. Revenues and Contracts The company offers its products and professional services through various ordering arrangements, including master service agreements (MSAs), commercial contracts, and federal contract awards. The company’s revenues are derived from the delivery of products and from contract services performed for its customers for each of the company’s three segments as follows: The company’s Aviation segment revenues result from the sale of aircraft parts and performance of MRO services to private and commercial aircraft owners, aviation MRO providers, and other clients. The company’s Fleet segment revenues result from the sale of aftermarket vehicle parts to government and commercial clients. The company’s Federal and Defense segment revenues result from providing professional and technical services primarily to the U.S. government customers on a contract basis. The three primary types of contracts used are cost-type, fixed-price, and time-and-materials. Customers The company’s customers include various commercial entities and government clients. The company’s largest customers by revenue were the USPS and the U.S. Navy for the year ended December 31, 2022. The USPS revenues, reported within the company’s Fleet segment, comprised approximately 16% of the company’s consolidated revenues in 2022. The U.S. Navy revenue, reported within the company’s Federal and Defense segment, comprised approximately 15% of the company’s consolidated revenues in 2022. Marketing The company’s marketing activities are conducted by each of its businesses by industry-specific sales representatives and professional marketing and business development staff. The company participates in various professional organizations and trade associations, and also attends industry trade shows and events in order to increase the company’s brand awareness and strengthen its service offerings. Government Regulation and Supervision The company’s businesses are subject to extensive regulation in the markets the company serves. The company works with numerous U.S. government agencies and entities, including but not limited to, all branches of the DoD and the Federal Aviation Administration (‘FAA’). Similar government authorities and regulations exist in the other countries in which the company does business. The company must comply with and is affected by a variety of laws and regulations relating to the award, administration, and performance of the U.S. Government contracts. The company is routinely audited and reviewed by the U.S. Government and its agencies, including the Defense Contract Audit Agency and the Defense Contract Management Agency. History VSE Corporation was founded in 1959. The company was incorporated in Delaware in 1959.