VT Halter Marine, Inc., a subsidiary of Vision Technologies Systems, Inc. (VT Systems
) has finalized an agreement with the U.S. Government to complete two contracts, including the construction of a Fisheries Research Vessel for the National Oceanographic Atmospheric Administration (NOAA) and the construction of a Logistic Support Vessel for the U.S. Army.
The Agreement, known as a “novation” provides an arrangement for VT Halter Marine to complete the multi-million dollar construction projects started by its predecessor. It was approved after the U.S. Government conducted an in-depth review to assure it was in their best interest to transfer the contracts to VT Halter Marine.
NOAA’s contract for the construction of a state-of-the-art Fisheries Research Vessel, valued at approximately $41 million of which $14 million was recognized before the acquisition, with a remaining $27 million to be recognized by VT Halter Marine. The contract also has options for three additional vessels amounting to about $113 million.
A contract with the U.S. Army’s Tank-automotive and Armaments Command in Warren, Michigan for a Logistic Support Vessel is also included in the novation. The contract for one
vessel is approximately $27 million. Of this, $13 million was recognized before the acquisition with a remaining $14 million to be recognized by VT Halter Marine. Contract options for an additional two vessels would be worth approximately $54 million.
Both projects are expected to be completed in the first half of 2004.
“These contracts are very instrumental in ensuring our ability to provide continuing work at VT Halter Marine yards. We value the trust and confidence that the U.S. Government has placed in VT Halter Marine’s team to complete these projects,” stated John Coburn, Chairman & CEO-VT Systems, based in Alexandria, Virginia.
Anil Raj, President and Chief Operating Officer for VT Halter Marine said, “We made and kept our commitment to our employees and are confident that their experience and dedication will be key factors in the successful completion of the U.S. Government Contracts