Varec Inc.

Varec Inc., a subsidiary of Leidos Holdings, Inc., headquartered in Norcross, Georgia, is a large-business prime contractor specializing in fuel management systems, automated data processing, and logistics technology for the Department of Defense—competing full and open (no set-asides) on a portfolio that is 97% prime awards.

Varec's capability portfolio centers on three mission-critical systems for the Defense Logistics Agency: FuelsManager Defense (FMD), an automated fuel inventory management and distribution platform serving approximately 1,800 users across 600 military sites; Electronic Point of Sale (EPOS), an automated point-of-sale and inventory system for military fuel supply chains; and Hydrant Equipment Monitoring Interface (HEMI), an equipment monitoring solution across 58 DLA sites. Recent representative work includes a $63.4 million single-award indefinite-delivery contract awarded May 1, 2025, for FMD software maintenance, support services, deployments, and HEMI support extending through April 30, 2030 (with two initial delivery orders totaling $11.94 million issued on the award date); a $10.4 million delivery order for FMD software maintenance and field site support through April 30, 2026; a $1.51 million delivery order for HEMI support through April 30, 2026; and a $19.9 million delivery order for Fuel Depot System Asset Visibility under the FDS-IM single-award contract, issued October 1, 2022, extending through January 8, 2027. Varec also holds a $36.5 million single-award indefinite-delivery contract for an Inventory Management and Monitoring solution providing real-time visibility of aviation, ground, and missile propellants across DLA Energy's worldwide footprint.

Customer concentration sits entirely within Defense Logistics Agency components. The Defense Logistics Agency Energy dominates the portfolio—149 awards carrying $511.6 million in combined potential value (53% of the total $965.2 million across all 355 awards). DLA Headquarters accounts for 23 awards ($136.6 million), and DLA Land and Maritime for 10 awards ($115.7 million). The Navy Information Warfare Systems Command (83 awards, $62.1 million) and the GSA Federal Acquisition Service (3 awards, $103.7 million) represent secondary customer relationships; together, the top five customers account for 96% of potential value across the portfolio.

Varec's primary vehicle is the General Services Administration's Multiple Award Schedule (GSA MAS), which carries 48 task orders valued at $318.1 million in combined potential value. The company also operates under two single-award indefinite-delivery contracts: IDC N6523614D2169 (64 task orders, $13.9 million) and IDC SPE60520D9508 (47 task orders), as well as GSA Information Technology Schedule 70 (20 task orders, $95.1 million). These vehicles are the mechanisms through which DLA Energy issues the bulk of Varec's delivery orders.

Activity has slowed in recent years—six awards in 2025 and two to date in 2026, down from a ten-award peak in 2024—though recompete exposure is modest: only three awards with ultimate completion dates in the next twenty-four months carry a combined potential value of $24.1 million. The portfolio's age and composition (awards dating to 1982 onward, with 355 total awards on record) reflect Varec's long-standing incumbent role in DLA fuel-management systems.

Across SCI-reportable federal service contracts above the $150,000 threshold, Varec invoiced $11.4 million in FY2022–FY2024 ($5.7 million each in FY2023 and FY2024) at a scale of 12.9 FTEs in FY2023 declining to 9.3 FTEs in FY2024. Government-paid hourly rates on these contracts ran median around $358.52 per hour, with senior labor pricing through $704.63 per hour and entry-level positions at $120.10 per hour. Across SCI-reportable prime contracts, subcontractors performed 5% of contractor hours, with only two named subcontractors reported; Varec predominantly self-performs delivery. As a subcontractor, Varec performs fuel tank testing and arctic ground-liner procurement work under Southwest Research Institute on DoD fuels and combustion research, environmental compliance testing under the Baker-Aecom Environmental Compliance JV for Navy and Marine Corps facilities, and automated tank gauge work under BAE Systems Technology Solutions & Services for energy automation operational technology sustainment.

Varec's parent, Leidos Holdings, Inc., is a multi-billion-dollar federal prime contractor with presence across GWAC, IDIQ, and agency-schedule vehicles. The corporate structure shows Varec as a subsidiary; operational performance spans Norcross, Peachtree Corners, and Whitehall, Ohio, with administrative oversight rooted in the Georgia headquarters and DLA relationships anchored in the Defense Logistics Agency's nationwide footprint.