Evergreen wins key contract extensions
The largest is for more than $100 million. It calls for Evergreen to continue providing multiple rotary wing aircraft for cargo and transport missions in support of both military and civilian forces engaged in reconstruction in Afghanistan.
The reconstruction work is being overseen by Fluor Corporation, an international engineering, construction and project management provider. Evergreen is playing a support role.
“We are proud to continue our partnership with Fluor Corporation, and to serve what we view as a significant, urgent and ongoing need for a variety of aviation services work in Afghanistan,” said Erickson CEO Udo Rieder. “Specific visibility into this demand throughout 2013 is significantly improved, and we are now intently focused on utilizing our diverse fleet of fixed and rotary wing aircraft to provide solid execution on these critical missions.”
Evergreen also won extension of a contract with the U.S. Transportation Command for Afghan services in direct support of the continued U.S. military presence. Valued at $24 million, it calls for the company to provide aircraft, pilots and ground crews in support of ongoing military operations.
“We are very pleased to have extended this important prime contract for essential services and to build on our long-held and important relationship with the U.S. Transportation Command,” Rieder said. “We are excited to demonstrate for our customer that we stand ready to provide strong levels of performance and readiness across a wide range of critical mission responsibilities.”
Both awards come from a portion of the U.S. defense budget not subject to sequestration.
In addition, the company has been awarded a U.S. Department of Defense contract modification for medical evacuation and training services for Army Garrison-Hawaii. It is valued at $10 million.
Erickson recently purchased Evergreen Helicopters from Evergreen International Aviation for $185 million in cash and $65 million in other considerations. According to Rieder, government business accounts for about 95 percent of the division’s revenue.