CPI Aero Receives Notice to Resume Work on Its $53.5 Million
F-16 Wing Component Contract
December 23, 2014
Edgewood, NY – CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT: CVU) today announced that it has received a notice from the Defense Logistics Agency (DLA) to resume work on its previously announced contract to provide structural wing components and logistical support for F-16 aircraft maintenance, repair and overhaul operations (MRO). Under this contract, CPI Aero will support wing MRO for both the U.S. fleet of more than 1,000 F-16 aircraft and the nearly 1,900 F-16s flown by air forces around the world. The term of the contract is for a period of 5 years, with a single option for an additional 3-year period, and has an estimated value, including options, of approximately $53.5 million.
The notice comes after a formal determination by the U.S. Small Business Administration (SBA) that CPI Aero is a small business under applicable regulations and the size standard of the F-16 contract following a protest by an unsuccessful offeror for the contract. Because of the protest, the Company received a stop-work order from DLA which has now been rescinded. The SBA’s determination is subject to appeal by the protester.
About CPI Aero
CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance pod systems in both the commercial aerospace and national security markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services. Among the key national security programs that CPI Aero supplies are the E-2D Advanced Hawkeye surveillance aircraft, the UH-60 BLACK HAWK® helicopter, the MH-53/CH-53 variant helicopters, the F-16 fighter aircraft, the MH-60S mine countermeasure helicopter, the AH-1Z ZULU attack helicopter, the DB-110 reconnaissance pod and the ALMDS mine detecting pod. In the commercial aviation market CPI Aero manufactures products for the Gulfstream G650 ultra-large cabin business jet, the HondaJet advanced light jet, the Embraer Phenom 300 business jet, the new Cessna Citation X+, and the S-92® helicopter. CPI Aero is included in the Russell Microcap® Index.
The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero’s SEC reports, including CPI Aero’s Form 10-K for the year ended December 31, 2014 and Form 10-Q for the quarter ended March 31, 2015.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.
Chief Financial Officer
Investor Relations Counsel:
Jody Burfening/Sanjay M. Hurry
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