MISSION READY AWARDED NEW CONTRACTS FOR AN ESTIMATED $127 MILLION WITH A CEILING OF $435 MILLION
Through its wholly owned subsidiary, Unifire Inc., Mission Ready Solutions Inc. (MRS.V) has been awarded a total of seven government contracts -- for personal protective equipment consisting of disposable level 2 and level 3 isolation gowns -- with an estimated value of $127,878,307 and a maximum value of $435,723,020 to be fulfilled over a 12-month period.
As part of its COVID-19 pandemic response, the contracts were awarded to the company through the United States Defense Logistics Agency Troop Support Clothing & Textiles (DLA C&T) supply chain to facilitate the delivery of the products to the United States Department of Health and Human Services (HHS) for the strategic national stockpile (SNS).
Fulfilment of delivery orders
The company will facilitate the fulfilment of delivery orders through its established network of Berry-compliant (made in America) product manufacturers and vendor partners. The products will ship directly from the suppliers to HHS. Prior to being awarded the C&T contracts, the company conducted extensive due diligence to source, vet and verify the proposed suppliers and their respective products to ensure full compliance with the terms of the contracts upon award. The company is confident in the ability of its suppliers to fulfill the contracts in accordance with the forecasted production requirements and anticipated delivery schedules. During the solicitation stage, the company submitted proposals in response to individual government solicitations relative to each contract that it was awarded. Pursuant to the requirements of each solicitation, the company's proposals included detailed information related to the product specifications, product availability, record of the product manufacturers, delivery time frames, among other criteria in support of the company's ability to meet the solicitation requirements. Upon validation of the company's proposals by DLA C&T, on Sept. 14, 2020, the company was awarded the C&T contracts. The company will commence fulfilment of the C&T contracts immediately upon receipt of the initial purchase order(s) which, pursuant to the terms of the C&T contracts, will be submitted to the company on or before Oct. 8, 2020.
Value of C&T contracts
Maximum -- $435,723,020
The maximum value of the delivery orders that may be submitted to the company during the 12-month term is set at $435,723,020.
Estimated -- $127,878,307
The estimated value of delivery orders to be submitted to the company during the term is equal to $127,878,307.
For clarity, the contract ceiling represents the maximum value of delivery orders that may be issued to the company pursuant to the C&T contracts. The estimated value is based on the contractor's estimate of the delivery orders to be issued to the company during the term. Though the company is prepared to facilitate the fulfilment of delivery orders in quantities up to the contract ceiling, there can be no assurance of the actual value of delivery orders to be received by the company during the term.
The gross margin on revenue generated pursuant to the contracts is not expected to differ materially from the company's historical gross margins relative to its government contracting operations.
All delivery orders pursuant to the contracts are to be fulfilled between September, 2020, and September, 2021.
Net 30 -- The Defense Logistics Agency will remit payment to Unifire within 30 days of delivery of the products pursuant to each delivery order.
The company's ability to demonstrate adequate capital availability to fulfill delivery orders continues to contribute to its success in winning contracts. The company will utilize commercially competitive rate financing provided by its existing capital partners to facilitate fulfilment of the delivery orders.
Marcus Treiber, chief operating officer of Mission Ready, states: "We are humbled to receive these significant awards, and honoured to contribute meaningfully to the pandemic response, helping to safeguard the lives of our fellow citizens. Additionally, we are thrilled to be exceeding our growth projections and delivering on our commitment to build sustainable value for our shareholders." Mr. Treiber continues, "Though we are excited to continue leveraging our status as a special operations equipment tailored logistics support prime vendor, Unifire continues to demonstrate its ability to win significant awards through unrelated avenues -- these sizable contract awards and the recently announced FEMA award being prime examples -- which really is a testament to the vastness of the opportunities within the world of government contracting."
The related announcement made by the United States Department of Defense, dated Sept. 14, 2020, can be viewed at the department website.
Monetary values referenced herein have been converted from U.S. currency to Canadian currency using an exchange rate of 1.32.
About Mission Ready Solutions Inc.
Mission Ready specializes in providing comprehensive government contracting solutions through its privileged access to a host of government contracting vehicles including its special operational equipment (SOE) tailored logistics support (TLS) contract administered by the United States Defense Logistics Agency (DLA), and multiple award schedule contracts administered by the United States General Services Administration (GSA).
Mission Ready's wholly owned subsidiary, Unifire Inc., is one of six companies, globally, authorized to provide equipment and designated services under DLA's SOE TLS program. Unifire is a designated small business and an industry-leading manufacturer and distributor of over 1.5 million fire, military, emergency and law enforcement products. As an incumbent awardee of the SOE TLS contract, with extensive knowledge and experience in providing solutions to the U.S. federal government, Unifire utilizes its highly efficient, scalable technology infrastructure to provide procurement solutions for program managers, military and federal contracting offices, base supply centres, and other governmental supply agencies.