Feb 16 2011
Metals USA Holdings Corp. (NYSE: MUSA) announced today that the Defense Logistics Agency, the Department of Defense's combat logistics support agency, has exercised its option to extend the existing Metals Prime Vendor contract with Metals USA Holdings Corp. ("Metals USA"), through its wholly-owned subsidiary, I-Solutions Direct, Inc., to supply the Southeast Region of the United States.
The contract extension represents the first option year of the contract's potential five year term, consisting of a two year base and three one-year option extensions. The Southeast Region Metals Prime Vendor contract is subject to a five-year maximum limit of $230 million.
The Defense Logistics Agency's Prime Vendor concept enables all branches of the military and other federal agencies to acquire a vast array of metals in virtually every product form and metal related services on a just-in-time basis via an online electronic catalog, all conforming to government regulations and specifications. For several years, Metals USA has continuously supplied metal and metal services to federal government customers, primarily through its Metal Prime Vendor contracts. In addition to the Southeast Region, Metals USA also holds Metal Prime Vendor contracts for the Western Region and for the Central Region of the United States, constituting three of four total existing Metal Prime Vendor contracts.
Lourenco Goncalves, Metals USA's Chairman, President and C.E.O. stated: "We are pleased to have prevailed in the Defense Logistics Agency proposal process for the Southeast Region, and look forward to another year serving the needs of our Southeast Region government customers. We believe our dedicated Metal Prime Vendor web-portal, combined with our industry leading service proposition, uniquely qualifies Metals USA to support the Defense Logistics Agency in its critical mission."