Virginia Electronic Systems, Inc.

Virginia Electronic Systems, Inc., a veteran-owned small business based in Virginia Beach, Virginia, supplies maritime communication, navigation, and equipment procurement services to the U.S. Coast Guard and Department of the Navy as a prime contractor (94% of recent awards) competing without set-aside designations in full-and-open procurements. The company operates predominantly as a prime, with minimal sub work routed through larger primes such as Bowhead Marine Support Services.

The vendor's customer concentration is extreme and tilted heavily toward one major customer. Naval Sea Systems Command (NAVSEA) anchors the portfolio with 24 awards carrying $5.29 billion in combined potential value — roughly 99% of the vendor's total award pipeline. The U.S. Coast Guard places 31 awards valued at $38.6 million, and Naval Supply Systems Command accounts for 38 awards valued at $951 thousand. The Department of State's Bureau of International Narcotics Law Enforcement and Department of the Army round out the active set. These five agencies cover 97% of recent awards. The dollar concentration is severe: NAVSEA's $5.29 billion potential value represents approximately 99% of the combined potential across all 105 awards. This creates substantial customer-concentration risk — Virginia Electronic Systems is almost entirely dependent on NAVSEA's Foreign Military Sales programs for Egypt, Belize, Haiti, and other host nations.

Capability footprint centers on communication and navigation (COMNAV) equipment procurement, shipyard services, vessel transfer logistics, technical support, and spare-parts supply for the transfer of decommissioned U.S. military vessels to allied nations under FMS authority. Recent representative work includes a $12.49 million definitive contract with the Coast Guard for shipyard services supporting USCGC cutter transfer to Greece (awarded September 2023, extended through December 2026); a $4.31 million purchase order for COMNAV equipment purchase and installation for Lebanon FMS (awarded November 2022, extended through December 2026); a $2.47 million definitive contract with the Coast Guard for COMNAV equipment for the Hellenic Navy (awarded March 2026); a $2.14 million definitive contract with the Coast Guard for Sri Lanka COMNAV equipment (awarded March 2025, extended through December 2026); a $1.95 million definitive contract with the Coast Guard for Ukraine COMNAV equipment under FMS (awarded January 2024); and a $1.40 million definitive contract with the Coast Guard for Philippines COMNAV equipment purchase and installation (awarded November 2025). Top NAICS categories reflect this focus: Other Support Activities for Water Transportation (24 awards), Search, Detection, Navigation, Guidance, Aeronautical and Nautical System and Instrument Manufacturing (14 awards), Boat Building (10 awards), and Ship Building and Repairing (8 awards). Top PSC codes show similar concentration: Small Craft (35 awards), Maintenance/Repair/Rebuild of Equipment—Ships, Small Craft, Pontoons and Floating Docks (16 awards), and Miscellaneous Communication Equipment (9 awards).

Activity has been volatile. The vendor won twelve awards in 2022, ten in 2023, four in 2024, thirteen in 2025, and four so far in 2026, suggesting recent compression despite year-over-year growth prior to 2024. Awards reaching ultimate completion within the next twenty-four months carry combined potential value of $25.5 million, creating recompete exposure on that backlog. Combined potential value across all awards is $5.33 billion, but combined dollars obligated across all awards stands at only $48.5 million (1% of potential value), indicating most contracts are optioned or future-year instruments rather than currently funded.

The vendor maintains a Basic Ordering Agreement (BOA) with NAVSEA under contract N0002415G4112, which carries ten task orders valued at $6.1 million, and a second BOA under N0002421G4112 with four task orders valued at $4.3 million. An Indefinite Delivery Contract under N0002423D4116 shows six task orders. The SeaPort-e vehicle carries one task order. Sub engagement is minimal: SCI reporting shows Virginia Electronic Systems delivered 1.6 FTEs in FY2022 and 0.2 FTEs in FY2024, with zero invoiced revenue captured in SCI prime records. Across SCI-reportable prime contracts, the average sub-hours share is 0%, indicating the vendor builds its own delivery teams rather than relying on subcontractors. In its rare subcontractor role, Virginia Electronic Systems performs installation, training, spare-parts warehousing, and maritime equipment support for Bowhead Marine Support Services on FMS programs for Thailand, Tunisia, Zimbabwe, and Mongolia.

The company registered as a federal contractor in 2002 and holds a Basic Ordering Agreement with Naval Sea Systems Command. No set-aside certifications (8(a), HUBZone, SDVOSB, WOSB) are mentioned in the source material; the vendor competes in full-and-open procurements despite its veteran-owned small business status.