But Prow also told investors that Vectrus is “seeing additional task orders for work associated with” LOGCAP V and added other agencies are also looking to issue task orders against that program.

“At this point in time, those tasks are not material to 2020, but they do provide a really nice demand signal and what we would expect to see as LOGCAP V continues to mature,” Prow told analysts.

COVID-19’s effects on the government market and particularly in procurement matters are multiplied in the matter of LOGCAP V given that contract’s size and scope, plus importance to Vectrus and the other three winners.

Continued delays on that program and other new contracts Vectrus has won factor into the company’s revised financial outlook for the year: now $1.385 billion-to-$1.405 billion in revenue and a margin of 4.0-to-4.1 percent adjusted EBITDA (earnings before interest, taxes, depreciation and amortization expenses).

Colorado Springs-based Vectrus also estimates the pandemic will create an impact of $65 million in deferred revenue this year. The second-quarter sales hit came out to $22.3 million, following a $2.2 million reduction in the first quarter. Second-quarter revenue did grow 1.3 percent to around $336 million over the same period last year.

Helping Vectrus is a trailing 12-month book-to-bill ratio of 1.4 and a $3.8 billion backlog, figures that take into account a recent extension on its contract for base support operations in Kuwait. That work is being rolled into LOGCAP V.

Extensions and delays in award decisions are becoming a fact of life in the government market during the pandemic even as opportunities continue to be available bid, a trend Prow pointed out Tuesday and other contractor CEOs have hinted at as well.

“The rate and pace of RFPs (requests for proposals) that we are responding to continues to be breakneck. It really has been quite significant,” prow said. “We are, however, seeing some of the awards slipping to the right, and presumably that has COVID-19 reasons for that occurring.”

One trend that appears to be changing for Vectrus and other contractors is the pipeline of potential acquisitions, which shrunk dramatically at the pandemic’s beginning when prospective sellers saw their valuations drop amid broader economic turmoil.

Many in that group of sellers also decided in turn to focus on themselves for the time being with an eye toward returning to the M&A market.

“We did pursue a target acquisition during the quarter that was strategic. Not all acquisitions you pursue come to fruition, and this one, we actually decided against,” Chief Financial Officer Susan Lynch said in the Tuesday call. “The M&A pipeline has refilled itself. There's actually a number of targets that we're looking at, and we'll be looking at a number of them very closely, and hopefully there'll be one that will be a match for us at the right price.”

AWARDEE

Spartan Iraq LLC traces its origins to the early days of aviation through its affiliation with Spartan College of Aeronautics and Technology, a network of aviation training campuses across the United States. The rich history of Spartan College reaches back to its founding in 1928. Now, 90 years later, Spartan College continues to lead the aviation training industry.