Atlanta-based Fuel Management Company Secures Contract to Support NATO and Coalition Forces
(ATLANTA) Aug. 26, 2019 – Varec, a leader in bulk liquid management solutions and wholly-owned subsidiary of Leidos, a FORTUNE 500® information technology, engineering, and science leader, announced it secured a recompeted contract award to extend its period of performance with NATO Support and Procurement Agency (NSPA). The single award, firm-fixed-price contract has a five-month base period of performance, with five one-year options and a total ceiling of approximately $13 million if all options are exercised. The contract has a performance period of August 2019 through December 2024.
The NSPA Fuel Monitoring System (NFMS) provides fuel monitoring support of NATO and Coalition Forces. Varec first began supporting the customer’s requirements in July of 2014. The delivered solution, comprised of the company’s proprietary FuelsManager® for Defense (FMD) software and TacFuels®, was designed to serve the unique needs of inventory management in tactical environments where fuel is stored in collapsible storage tanks, such as fuel bladders. Through commercial best practices and a combination of military-proven technology, such as tactical gauges and mobile point-of-sale devices in the field, Varec also provides operational maintenance and sustainment for NATO’s integrated and complex fuel accounting services. This has resulted in repeatable and reliable inventory management in order to make consistent financial oversight and auditability achievable.
“To date, our systems have recorded more than 1.5 million total transactions and synchronized more than 1 million sales transactions in support of the NFMS program,” said Marty Favero, Varec director of defense business “Our experience with the Afghan operational environment, military operations in theater, and extreme climate conditions that require rapid responses to navigate an unpredictable supply chain position us to be a strong partner for NATO for many years to come.”
The new five-year contract includes both software and hardware enhancements that focus on providing a more flexible, and cloud-based, web-accessible fuel management system. With NFMS, other NATO countries will have the option to leverage the system to rationalize their fuels management. Varec also anticipates extending In-Transit Visibility (ITV), a capability currently used for refueling trucks in Afghanistan, across other NATO sites during the new upcoming period of performance.
“As a result of this contract award we will continue to provide reliable, innovative and cost-effective solutions that give defense organizations the tools to effectively account for one of their most expensive and valuable assets – fuel,” said Karl Voepel, president of Varec.
For more information about Varec’s solutions for defense organizations, please visit https://www.varec.com/solutions/defense/.
Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the company’s Annual Report on Form 10-K for the period ended December 28, 2018, and other such filings that Leidos makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
Varec, Inc., a wholly owned subsidiary of Leidos, is considered the pioneer of inventory tank gauging instrumentation, and has been an innovative force for over 90 years. Today, Varec is a worldwide leader in bulk liquid management, providing total asset visibility and control through integrated hardware, software and engineering solutions for the oil and gas, defense and aviation markets. The Varec FuelsManager suite of software applications has been a longtime standard of major oil companies and the U.S. Department of Defense, as well as aviation tank farm operators and service providers. With its headquarters and manufacturing facility outside of Atlanta, Georgia, Varec also has offices in Virginia, Australia and the United Kingdom. For more information, visit www.varec.com.
Leidos is a Fortune 500® information technology, engineering, and science solutions and services leader working to solve the world’s toughest challenges in the defense, intelligence, homeland security, civil, and health markets. The company’s 33,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $10.19 billion for the fiscal year ended December 28, 2018. For more information, visit www.Leidos.com.