VSE (VSEC) 10-Q 31 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 22, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	VSE CORP
Entity Central Index Key	0000102752
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		10,970,123
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 1,095	$ 162
Receivables, net	69,793	60,004
Unbilled receivables, net	54,151	41,255
Inventories, net	202,811	166,392
Other current assets	12,652	13,407
Total current assets	340,502	281,220
Property and equipment, net	43,792	49,606
Intangible assets, net	142,907	94,892
Goodwill	259,212	198,622
Operating lease right-of-use assets	24,375	0
Other assets	16,845	14,488
Total assets	827,633	638,828
Current liabilities:
Current portion of long-term debt	10,716	9,466
Accounts payable	71,668	57,408
Current portion of earn-out obligation	10,700	0
Accrued expenses and other current liabilities	45,314	37,133
Dividends payable	987	871
Total current liabilities	139,385	104,878
Long-term debt, less current portion	257,815	151,133
Deferred compensation	17,417	17,027
Long-term lease obligations, less current portion	0	18,913
Long-term operating lease liabilities	25,124	0
Earn-out obligation	14,300	0
Deferred tax liabilities	17,732	18,482
Total liabilities	471,773	310,433
Commitments and contingencies (Note 6)
Stockholders' equity:
Common stock, par value $0.05 per share, authorized 15,000,000 shares; issued and outstanding 10,970,123 and 10,886,036, respectively	549	544
Additional paid-in capital	29,411	26,632
Retained earnings	327,191	301,073
Accumulated other comprehensive (loss) income	(1,291)	146
Total stockholders' equity	355,860	328,395
Total liabilities and stockholders' equity	$ 827,633	$ 638,828

Unaudited Consolidated Balanc_2

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.05	$ 0.05
Common stock, authorized (in shares)	15,000,000	15,000,000
Common stock, issued (in shares)	10,970,123	10,886,036
Common stock, outstanding (in shares)	10,970,123	10,886,036

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Total revenues	$ 198,326	$ 168,931	$ 557,356	$ 516,222
Costs and operating expenses:
Selling, general and administrative expenses	541	863	2,911	2,412
Amortization of intangible assets	5,014	4,005	14,985	12,013
Total costs and operating expenses	181,111	154,934	511,912	476,777
Gain on sale of contract	0	1,700	0	1,700
Operating income	17,215	15,697	45,444	41,145
Interest expense, net	3,706	2,340	10,262	6,697
Income before income taxes	13,509	13,357	35,182	34,448
Provision for income taxes	2,982	3,323	8,154	8,611
Net income	$ 10,527	$ 10,034	$ 27,028	$ 25,837
Basic earnings per share (in dollars per share)	$ 0.96	$ 0.92	$ 2.47	$ 2.38
Basic weighted average common shares outstanding (in shares)	10,970,123	10,881,106	10,953,581	10,874,331
Diluted earnings per share (in dollars per share)	$ 0.95	$ 0.92	$ 2.45	$ 2.37
Diluted weighted average shares outstanding (in shares)	11,060,081	10,935,112	11,035,951	10,916,989
Dividends declared per share (in dollars per share)	$ 0.09	$ 0.08	$ 0.26	$ 0.23
Products
Revenues:
Total revenues	$ 96,832	$ 85,886	$ 279,608	$ 264,678
Costs and operating expenses:
Costs and operating expenses	81,988	72,256	237,661	222,816
Services
Revenues:
Total revenues	101,494	83,045	277,748	251,544
Costs and operating expenses:
Costs and operating expenses	$ 93,568	$ 77,810	$ 256,355	$ 239,536

Unaudited Consolidated Statem_2

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 10,527	$ 10,034	$ 27,028	$ 25,837
Change in fair value of interest rate swap agreements, net of tax	(16)		(1,437)
Change in fair value of interest rate swap agreements, net of tax		28		362
Other comprehensive (loss) income, net of tax	(16)	28	(1,437)	362
Comprehensive income	$ 10,511	$ 10,062	$ 25,591	$ 26,199

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 27,028	$ 25,837
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,622	18,984
Deferred taxes	(1,230)	(1,733)
Stock-based compensation	2,592	2,146
Gain on sale of contract	0	1,700
Changes in operating assets and liabilities, net of impact of acquisitions:
Receivables, net	(2,380)	738
Unbilled receivables, net	(12,896)	11,298
Inventories, net	(29,540)	(36,448)
Other current assets and noncurrent assets	(481)	3,518
Accounts payable and deferred compensation	11,793	(14,972)
Accrued expenses and other current and noncurrent liabilities	1,931	(3,010)
Long-term lease obligations	0	(1,237)
Net cash provided by operating activities	17,439	3,421
Cash flows from investing activities:
Purchases of property and equipment	(7,689)	(2,522)
Proceeds from the sale of property and equipment	4	51
Proceeds from the sale of contract	0	1,700
Cash paid for acquisitions, net of cash acquired	(112,660)	0
Net cash used in investing activities	(120,345)	(771)
Cash flows from financing activities:
Borrowings on loan agreement	382,501	468,949
Repayments on loan agreement	(274,969)	(465,521)
Payment of debt financing costs	0	(1,702)
Payments on capital lease obligations	0	(1,077)
Payments of taxes for equity transactions	(955)	(641)
Dividends paid	(2,738)	(2,393)
Net cash provided by (used in) financing activities	103,839	(2,385)
Net increase in cash and cash equivalents	933	265
Cash and cash equivalents at beginning of period	162	624
Cash and cash equivalents at end of period	$ 1,095	$ 889

Unaudited Consolidated Statem_4

Unaudited Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance, beginning balance (in shares) at Dec. 31, 2017		10,839,000
Balance, beginning balance at Dec. 31, 2017	$ 293,095	$ 542	$ 24,470	$ 267,902	$ 181
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,837			25,837
Stock-based compensation (in shares)		42,000
Stock-based compensation	2,022	$ 2	2,020
Other comprehensive income (loss), net of tax	362				362
Dividends declared	(2,504)			(2,504)
Balance, ending balance (in shares) at Sep. 30, 2018		10,881,000
Balance, ending balance at Sep. 30, 2018	320,507	$ 544	26,490	292,930	543
Balance, beginning balance (in shares) at Jun. 30, 2018		10,881,000
Balance, beginning balance at Jun. 30, 2018	311,316	$ 544	26,490	283,767	515
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,034			10,034
Other comprehensive income (loss), net of tax	28				28
Dividends declared	(871)			(871)
Balance, ending balance (in shares) at Sep. 30, 2018		10,881,000
Balance, ending balance at Sep. 30, 2018	$ 320,507	$ 544	26,490	292,930	543
Balance, beginning balance (in shares) at Dec. 31, 2018	10,886,036	10,886,000
Balance, beginning balance at Dec. 31, 2018	$ 328,395	$ 544	26,632	301,073	146
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,028			27,028
Stock-based compensation (in shares)		84,000
Stock-based compensation	2,784	$ 5	2,779
Other comprehensive income (loss), net of tax	(1,437)				(1,437)
Dividends declared	$ (2,854)			(2,854)
Balance, ending balance (in shares) at Sep. 30, 2019	10,970,123	10,970,000
Balance, ending balance at Sep. 30, 2019	$ 355,860	$ 549	29,411	327,191	(1,291)
Balance, beginning balance (in shares) at Jun. 30, 2019		10,970,000
Balance, beginning balance at Jun. 30, 2019	346,337	$ 549	29,411	317,652	(1,275)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,527			10,527
Other comprehensive income (loss), net of tax	(16)				(16)
Dividends declared	$ (988)			(988)
Balance, ending balance (in shares) at Sep. 30, 2019	10,970,123	10,970,000
Balance, ending balance at Sep. 30, 2019	$ 355,860	$ 549	$ 29,411	$ 327,191	$ (1,291)

Unaudited Consolidated Statem_5

Unaudited Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per share (in dollars per share)	$ 0.09	$ 0.08	$ 0.26	$ 0.23

Nature of Business and Basis of

Nature of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation Our accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to SEC Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, such financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019 . For further information refer to the consolidated financial statements and footnotes thereto included in our 2018 Form 10-K. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the financial statements include accruals for contract disallowance reserves, award fee revenues, costs to complete on fixed price contracts, recoverability of goodwill and intangible assets, and earn-out obligations. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASC 842"), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is required to be adopted using a modified retrospective method and is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB provided an alternative transition method of adoption through ASU No. 2018-11, Targeted Improvements , which provides entities with an optional transition method to apply the transition provisions of ASU 2016-02 at the beginning of the period of adoption. On January 1, 2019, we adopted ASC 842 using the alternative transition method provided by ASU 2018-11 recording right-of-use assets and lease liabilities for our existing leases as of January 1, 2019, as well as a cumulative-effect adjustment to retained earnings of initially applying the new standard as of January 1, 2019. We have elected the package of practical expedients permitted under the transition guidance, which does not require reassessment of prior conclusions related to lease identification, lease classification, and treatment for initial direct lease costs. We have not elected the practical expedients pertaining to the use of hindsight and land easements. The adoption of the new lease standard resulted in the recharacterization of our headquarters lease, which was accounted for using the financing method under previously existing build-to-suit accounting rules, to an operating lease under ASC 842. Upon adoption of the new lease standard on January 1, 2019, we recorded a right-of-use asset of $24.3 million , property and equipment of $2.8 million , and operating lease liability of $29.6 million , with immaterial changes to other balance sheet accounts. The recharacterization resulted in a cumulative-effect adjustment to retained earnings of approximately $1.9 million , net of taxes, as of January 1, 2019. The new standard did not have a significant impact on our consolidated results of operations or cash flows.

Acquisition

Acquisition	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Acquisition	Acquisition On January 10, 2019, our wholly owned subsidiary VSE Aviation, Inc. ("VSE Aviation") acquired 100% of the equity of 1st Choice Aerospace Inc. ("1st Choice Aerospace"), a provider of maintenance, repair and overhaul ("MRO") services and products for new generation and legacy commercial aircraft. 1st Choice Aerospace has operations in Florida and Kentucky. We have retained key members of 1st Choice Aerospace's management team under three -year employment contracts with five -year non-compete covenants. The initial purchase consideration paid at closing for 1st Choice Aerospace was approximately $113 million , which included $1.1 million as an estimated net working capital adjustment. We will also be required to make earn-out payments of up to $40 million if 1st Choice Aerospace meets certain financial targets during 2019 and 2020. Approximately $1.1 million of our closing payments was deposited into an escrow account to secure the sellers' indemnification obligations. Any amount remaining in such escrow account at the end of the indemnification period less any then pending indemnification claims will be distributed to the sellers. 1st Choice Aerospace's results of operations are included in our Aviation Group in the accompanying unaudited consolidated financial statements beginning on the acquisition date of January 10, 2019. 1st Choice Aerospace had unaudited revenues of approximately $45.1 million and operating income of approximately $10.5 million before amortization of intangible assets of approximately $3.0 million and allocated corporate costs of approximately $1.2 million from the acquisition date through September 30, 2019. We have not finalized our assessment of the fair values of the assets acquired and liabilities assumed as there has been insufficient time between the acquisition date and the issuance of these financial statements to complete our fair value review and final determination. As the amounts recorded for certain assets and liabilities are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances that existed at the acquisition date. The final determination of fair values of certain assets and liabilities will be completed within the measurement period of up to one-year from the acquisition date as permitted under U.S. GAAP. The 1 st Choice Aerospace acquisition requires the need to use the full one-year measurement period to adequately analyze and assess several factors used in establishing the asset acquired and liability assumed fair values as of the acquisition date, including intangibles, inventory and finalizing the estimated probability of each year’s earn-out obligation target being achieved. Any potential adjustments made could be material in relation to the preliminary values presented in the table below. Based on our preliminary valuation, the total estimated purchase price has been allocated to assets acquired (including identifiable intangible assets and goodwill) and liabilities assumed, as follows (in thousands): Description Fair Value Cash $ 396 Accounts receivable 7,409 Inventories 6,879 Prepaid expenses and other current assets 382 Property and equipment 4,044 Intangibles - customer related 55,000 Intangibles - trade name 8,000 Goodwill 60,590 Operating lease right-of-use assets 2,643 Other assets 333 Other current liabilities (5,244 ) Long-term operating lease liabilities (2,376 ) $ 138,056 Cash consideration $ 113,056 Acquisition date estimated fair value of earn-out obligation 25,000 Total $ 138,056 The estimated value attributed to customer relationships is being amortized on a straight-line basis using weighted average useful lives of 17 years . The estimated value attributed to trade name is being amortized on a straight-line basis over nine years . The preliminary amount of goodwill recorded for our 1st Choice Aerospace acquisition was approximately $61 million , all of which is expected to be amortizable for income tax purposes. The goodwill recognized reflects the strategic advantage of expanding our sustainment services into the aviation supply chain market. We incurred approximately $408 thousand of acquisition-related expenses for the nine months ended September 30, 2019, which are included in selling, general and administrative expenses. The following VSE consolidated pro forma results are prepared as if the 1st Choice Aerospace acquisition had occurred on January 1, 2018. This information is for comparative purposes only and does not necessarily reflect the results that would have occurred or may occur in the future. The unaudited consolidated pro forma results of operations are as follows (in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Revenue $ 198,326 $ 181,464 $ 558,915 $ 550,452 Net Income $ 10,532 $ 10,294 $ 27,596 $ 26,465 Basic earnings per share $ 0.96 $ 0.94 $ 2.52 $ 2.43 Diluted earnings per share $ 0.95 $ 0.94 $ 2.50 $ 2.42

Revenue

Revenue	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregated Revenue Our revenues are derived from contract services performed for the United States Postal Service ("USPS"), United States Department of Defense ("DoD") agencies or federal civilian agencies and from the delivery of products to commercial customers. A summary of revenues for our operating groups by customer for the three and nine months ended September 30, 2019 are as follows (in thousands): Three months ended September 30, 2019 Customer Supply Chain Management Aviation Federal Services Total USPS $ 42,282 $ — $ — $ 42,282 DoD 6,935 1,613 76,505 85,053 Commercial 6,015 56,839 — 62,854 Other government 137 734 7,266 8,137 $ 55,369 $ 59,186 $ 83,771 $ 198,326 Nine months ended September 30, 2019 Customer Supply Chain Management Aviation Federal Services Total USPS $ 127,077 $ — $ — $ 127,077 DoD 18,238 2,768 201,828 222,834 Commercial 15,085 159,400 1,104 175,589 Other government 478 1,385 29,993 31,856 $ 160,878 $ 163,553 $ 232,925 $ 557,356 A summary of revenues for our operating groups by customer for the three and nine months ended September 30, 2018 are as follows (in thousands): Three months ended September 30, 2018 Customer Supply Chain Management Aviation Federal Services Total USPS $ 43,031 $ — $ — $ 43,031 DoD 5,479 913 73,610 80,002 Commercial 3,324 32,641 62 36,027 Other government — 446 9,425 9,871 $ 51,834 $ 34,000 $ 83,097 $ 168,931 Nine months ended September 30, 2018 Customer Supply Chain Management Aviation Federal Services Total USPS $ 130,151 $ — $ — $ 130,151 DoD 21,180 3,153 225,509 249,842 Commercial 10,123 98,213 295 108,631 Other government 507 1,188 25,903 27,598 $ 161,961 $ 102,554 $ 251,707 $ 516,222 A summary of revenues for our operating groups by contract type for the three and nine months ended September 30, 2019 are as follows (in thousands): Three months ended September 30, 2019 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 315 $ 41,691 $ 42,006 Fixed-price 55,369 26,268 19,078 100,715 Time and materials — 32,603 23,002 55,605 Total revenues $ 55,369 $ 59,186 $ 83,771 $ 198,326 Nine months ended September 30, 2019 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 696 $ 103,027 $ 103,723 Fixed-price 160,878 75,260 58,098 294,236 Time and materials — 87,597 71,800 159,397 Total revenues $ 160,878 $ 163,553 $ 232,925 $ 557,356 A summary of revenues for our operating groups by contract type for the three and nine months ended September 30, 2018 are as follows (in thousands): Three months ended September 30, 2018 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ — $ 44,638 $ 44,638 Fixed-price 51,834 20,152 19,234 91,220 Time and materials — 13,848 19,225 33,073 Total revenues $ 51,834 $ 34,000 $ 83,097 $ 168,931 Nine months ended September 30, 2018 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 1,098 $ 137,560 $ 138,658 Fixed-price 161,961 59,525 51,577 273,063 Time and materials — 41,931 62,570 104,501 Total revenues $ 161,961 $ 102,554 $ 251,707 $ 516,222 Contract Balances Billed receivables, unbilled receivables (contract assets), and contract liabilities are the results of revenue recognition, customer billing, and timing of payment receipts. Billed receivables, net, represent unconditional rights to consideration under the terms of the contract and include amounts billed and currently due from our customers. Unbilled receivables represent our right to consideration in exchange for goods or services that we have transferred to the customer prior to us having the right to payment for such goods or services. Contract liabilities are recorded when customers remit contractual cash payments in advance of us satisfying related performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. We present our unbilled receivables and contract liabilities on a contract-by-contract basis. If a contract liability exists, it is netted against the unbilled receivables balance for that contract. Unbilled receivables increased from $41.3 million at December 31, 2018 to $54.2 million at September 30, 2019 , primarily due to the revenue recognized as performance obligations were satisfied prior to the billing of our customers. Contract liabilities, which are included in accrued expenses and other current liabilities in our consolidated balance sheet, decreased from $5.0 million at December 31, 2018 to $4.9 million at September 30, 2019 , primarily due to revenue recognized in excess of advance payments received. For the nine months ended September 30, 2019 and September 30, 2018, we recognized revenue that was previously included in the beginning balance of contract liabilities of $2.1 million and $8.1 million , respectively. Performance Obligations Our performance obligations are satisfied over time as work progresses or at a point in time. Revenues from products and services transferred to customers over time accounted for approximately 57% of our revenues for the three and nine months ended September 30, 2019 and September 30, 2018, primarily related to revenues in our Federal Services Group and for MRO services in our Aviation Group. Revenues from products and services transferred to customers at a point in time accounted for approximately 43% of our revenues for the three and nine months ended September 30, 2019 and September 30, 2018. The majority of our revenue recognized at a point in time is for the sale of vehicle and aircraft parts in our Supply Chain Management and Aviation groups. As of September 30, 2019 , the aggregate amount of transaction prices allocated to unsatisfied or partially unsatisfied performance obligations was $252 million . Performance obligations expected to be satisfied within one year and greater than one year are 97% and 3% , respectively. We have applied the practical expedient for certain parts sales and MRO services to exclude the amount of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. During the nine months ended September 30, 2019 and September 30, 2018, revenue recognized from performance obligations satisfied in prior periods was not material.

Debt

Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt	Debt Long-term debt consisted of the following (in thousands): September 30, December 31, 2019 2018 Bank credit facility - term loan $ 73,300 $ 80,800 Bank credit facility - revolver loans 196,966 81,934 Principal amount of long-term debt 270,266 162,734 Less debt issuance costs (1,735 ) (2,135 ) Total long-term debt 268,531 160,599 Less current portion (10,716 ) (9,466 ) Long-term debt, less current portion $ 257,815 $ 151,133 We have a loan agreement with a group of banks to provide working capital, letters of credit and acquisition financing. The loan agreement, which was amended in January 2018 and expires in January 2023 , has a term loan facility and a revolving loan facility. The revolving loan facility provides for revolving loans and letters of credit. Financing costs associated with the loan agreement amendment of approximately $1.5 million were capitalized and are being amortized over the five -year life of the loan. The fair value of outstanding debt as of September 30, 2019 under our bank loan facilities approximates its carrying value using Level 2 inputs based on market data on companies with a corporate rating similar to ours that have recently priced credit facilities. Our required term loan payments after September 30, 2019 are as follows (in thousands): 2019 $ 2,500 2020 11,875 2021 14,375 2022 15,000 2023 29,550 Total $ 73,300 The maximum amount of credit available to us under the loan agreement for revolving loans and letters of credit as of September 30, 2019 was $300 million . Subject to the terms of the loan agreement, we may borrow and repay the revolving loan borrowings as our cash flows require or permit. We pay an unused commitment fee and fees on letters of credit that are issued. We had $72 thousand and $57 thousand in letters of credit outstanding as of September 30, 2019 and December 31, 2018 , respectively. Under the loan agreement we may elect to increase the maximum availability of the term loan facility, the revolving loan facility, or both facilities, up to an aggregate additional amount of $100 million . We pay interest on the term loan borrowings and revolving loan borrowings at LIBOR plus a base margin or at a base rate (typically the prime rate) plus a base margin. As of September 30, 2019 , the LIBOR base margin was 2.50% and the base rate base margin was 1.25% . The base margins increase or decrease in increments as our Total Funded Debt/EBITDA Ratio increases or decreases, respectively. The loan agreement requires us to have interest rate hedges on a portion of the outstanding term loan for the first three years after the January 2018 amendment date of the agreement. To mitigate the risks associated with future interest rate movements we have employed interest rate hedges to fix the rate on a portion of our outstanding borrowings for various periods. We executed interest rate swap agreements in February 2019 and February 2018. The notional amount of the interest rate swap agreements was $125 million and $50 million as of September 30, 2019 and December 31, 2018 , respectively. After taking into account the impact of interest rate swap agreements, as of September 30, 2019 , interest rates on portions of our outstanding debt ranged from 4.53% to 6.25% , and the effective interest rate on our aggregate outstanding debt was 4.91% . Interest expense incurred on bank loan borrowings and interest rate hedges was approximately $3.6 million and $1.9 million for the three months ended September 30, 2019 and 2018 , respectively. Interest expense incurred on bank loan borrowings and interest rate hedges was approximately $9.9 million and $5.1 million for the nine months ended September 30, 2019 and 2018, respectively. The loan agreement contains collateral requirements to secure our loan agreement obligations, restrictive covenants, a limit on annual dividends, and other affirmative and negative covenants, conditions, and limitations. Restrictive covenants include a maximum Total Funded Debt/EBITDA Ratio and a minimum Fixed Charge Coverage Ratio. We were in compliance with required ratios and other terms and conditions at September 30, 2019 .

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share ("EPS") has been computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Our calculation of diluted earnings per common share includes the dilutive effects for an assumed vesting of restricted stock awards. Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Basic weighted average common shares outstanding 10,970,123 10,881,106 10,953,581 10,874,331 Effect of dilutive shares 89,958 54,006 82,370 42,658 Diluted weighted average common shares outstanding 11,060,081 10,935,112 11,035,951 10,916,989

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases We determine at its inception whether an arrangement that provides us control over the use of an asset is a lease. We recognize at lease commencement a right-of-use ("ROU") asset and lease liability based on the present value of the future lease payments over the lease term. Substantially all of our leases are long-term operating leases for facilities with fixed payment terms between two and 15 years . Our operating lease ROU assets are recorded in operating lease right-of-use assets on our accompanying unaudited consolidated balance sheet. The current portion of operating lease liabilities are presented within accrued expenses and other current liabilities, and the non-current portion of operating lease liabilities are presented under long-term operating lease liabilities on our accompanying unaudited consolidated balance sheet. For leases with terms greater than 12 months, we record the related asset and lease liability at the present value of lease payments over the lease term. Leases with an initial term of 12 months or less with purchase options or extension options that are not reasonably certain to be exercised are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the term of the lease. Our lease cost for the three and nine months ended September 30, 2019 included the following components (in thousands): Three months Nine months Operating lease cost $ 1,465 $ 4,715 Short-term lease cost 146 445 Less: sublease income (251 ) (791 ) Total lease cost, net $ 1,360 $ 4,369 Certain of our leases include options to extend the term of the lease or to terminate the lease. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term for purposes of determining total future lease payments. Our lease agreements do not provide a readily determinable implicit rate nor is it available to us from our lessors. Instead, we estimate our incremental borrowing rate based on information available at lease commencement to discount lease payments to present value. The table below summarizes future minimum lease payments under operating leases, recorded on the balance sheet, as of September 30, 2019 (in thousands): Operating Leases Last three months of 2019 $ 972 2020 5,486 2021 5,192 2022 5,156 2023 4,790 After 2023 14,149 Minimum lease payments 35,745 Less: imputed interest (6,654 ) Present value of minimum lease payments 29,091 Less: current maturities of lease liabilities (3,967 ) Long-term lease liabilities $ 25,124 We made cash payments of approximately $4.8 million for operating leases during the nine months ended September 30, 2019 , which are included in cash flows from operating activities in our unaudited consolidated statement of cash flows. The weighted average remaining lease term and discount rate for our operating leases were approximately 6.8 years and 6.0% , respectively at September 30, 2019 . Contingencies On or about April 19, 2018 Joseph Waggoner, on behalf of himself and all similarly situated individuals, filed a lawsuit against VSE and two of our subcontractors in the United States District Court, Eastern District of Texas, Texarkana Division, alleging overtime compensation entitlement at a rate of one and one-half times their regular rate of pay for all hours worked over 40 hours in a workweek. The plaintiffs are seeking to certify the case as a collective action for similarly situated individuals. The plaintiffs work under a contract between defendants and the United States Army at the Red River Army Depot in Texas. The plaintiffs assert that employees' 15-minute unpaid work breaks should have been included as "working hours" in calculating overtime. Because we believe it is probable that VSE will incur a loss related to this matter, we have accrued a loss provision for this matter, which represents our reasonable estimate related to a possible unfavorable settlement. While we do not believe that we will have any additional liability that is material, there can be no guaranty that the ultimate resolution will not result in an additional liability that is material. Other Matters In addition to the above-referenced legal proceeding, we may have certain claims in the normal course of business, including legal proceedings, against us and against other parties. In our opinion, the resolution of these other claims will not have a material adverse effect on our results of operations, financial position or cash flows. However, because the results of any legal proceedings cannot be predicted with certainty, the amount of loss, if any, cannot be reasonably estimated. Further, from time-to-time, government agencies investigate whether our operations are being conducted in accordance with applicable contractual and regulatory requirements. Government investigations of us, whether relating to government contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments, fines or penalties being imposed upon us, or could lead to suspension or debarment from future government contracting. Government investigations often take years to complete and many result in no adverse action against us. We believe, based upon current information, that the outcome of any such government disputes and investigations will not have a material adverse effect on our results of operations, financial condition or cash flows.

Business Segments and Customer

Business Segments and Customer Information	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Business Segments and Customer Information	Business Segments and Customer Information Business Segments Management of our business operations is conducted under three reportable operating segments: Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") and direct sales to the United States Postal Service ("USPS"), the United States Department of Defense ("DoD") and to commercial customers. Aviation Group – Our Aviation Group provides maintenance, repair and overhaul ("MRO") services, parts supply and distribution, and supply chain solutions for commercial aerospace and business and general aviation jet aircraft engines and engine accessories. Federal Services Group – Our Federal Services Group provides engineering, industrial, logistics, foreign military sales, legacy equipment sustainment services, IT and technical and consulting services primarily to DoD and other government agencies. The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by our Chief Executive Officer in deciding how to allocate resources and in assessing performance. We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation. Our segment information is as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Revenues: Supply Chain Management Group $ 55,369 $ 51,834 $ 160,878 $ 161,961 Aviation Group 59,186 34,000 163,553 102,554 Federal Services Group 83,771 83,097 232,925 251,707 Total revenues $ 198,326 $ 168,931 $ 557,356 $ 516,222 Operating income: Supply Chain Management Group $ 7,843 $ 7,783 $ 22,388 $ 23,547 Aviation Group 6,568 2,184 14,820 7,291 Federal Services Group 4,524 6,186 12,968 12,270 Corporate/unallocated expenses (1,720 ) (456 ) (4,732 ) (1,963 ) Operating income $ 17,215 $ 15,697 $ 45,444 $ 41,145 Customer Information Our revenues by customer is as follows (dollars in thousands): Three months ended September 30, Nine months ended September 30, Customer 2019 % 2018 % 2019 % 2018 % USPS $ 42,282 21.3 % $ 43,031 25.5 % $ 127,077 22.8 % $ 130,151 25.2 % U.S. Navy 30,123 15.2 % 37,013 21.9 % 72,930 13.1 % 115,294 22.4 % U.S. Army 48,529 24.5 % 38,167 22.6 % 132,581 23.8 % 122,502 23.7 % U.S. Air Force 6,401 3.2 % 4,822 2.9 % 17,323 3.1 % 12,046 2.3 % Total - DoD 85,053 42.9 % 80,002 47.4 % 222,834 40.0 % 249,842 48.4 % Commercial aviation 56,839 28.7 % 32,641 19.3 % 159,400 28.6 % 98,213 19.0 % Other commercial 6,015 3.0 % 3,386 2.0 % 16,189 2.9 % 10,418 2.0 % Total - Commercial 62,854 31.7 % 36,027 21.3 % 175,589 31.5 % 108,631 21.0 % Other government 8,137 4.1 % 9,871 5.8 % 31,856 5.7 % 27,598 5.4 % Total $ 198,326 100 % $ 168,931 100 % $ 557,356 100 % $ 516,222 100 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Changes in goodwill for the nine months ended September 30, 2019 are as follows (in thousands): Supply Chain Management Federal Services Aviation Total Balance as of December 31, 2018 $ 63,190 $ 30,883 $ 104,549 $ 198,622 Increase from acquisition — — 60,590 60,590 Balance as of September 30, 2019 $ 63,190 $ 30,883 $ 165,139 $ 259,212 Intangible assets consist of the value of contract and customer-related intangible assets, acquired technologies and trade names. Amortization expense was approximately $5.0 million and $15.0 million for the three and nine months ended September 30, 2019 , respectively, and $4.0 million and $12.0 million for the three and nine months ended September 30, 2018 , respectively. Intangible assets, net were comprised of the following (in thousands): Cost Accumulated Amortization Accumulated Impairment Loss Net Intangible Assets September 30, 2019 Contract and customer-related $ 228,094 $ (98,278 ) $ (1,025 ) $ 128,791 Acquired technologies 12,400 (9,378 ) — 3,022 Trade names 24,670 (13,576 ) — 11,094 Total $ 265,164 $ (121,232 ) $ (1,025 ) $ 142,907 December 31, 2018 Contract and customer-related $ 173,094 $ (86,076 ) $ (1,025 ) $ 85,993 Acquired technologies 12,400 (8,533 ) — 3,867 Trade names 16,670 (11,638 ) — 5,032 Total $ 202,164 $ (106,247 ) $ (1,025 ) $ 94,892

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The accounting standard for fair value measurements defines fair value, and establishes a market-based framework or hierarchy for measuring fair value. The standard is applicable whenever assets and liabilities are measured at fair value. The fair value hierarchy established in the standard prioritizes the inputs used in valuation techniques into three levels as follows: Level 1–Observable inputs–quoted prices in active markets for identical assets and liabilities; Level 2–Observable inputs other than the quoted prices in active markets for identical assets and liabilities–includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets and amounts derived from valuation models where all significant inputs are observable in active markets; and Level 3–Unobservable inputs–includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions. The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 and the level they fall within the fair value hierarchy (in thousands): Amounts Recorded at Fair Value Financial Statement Classification Fair Value Hierarchy Fair Value September 30, 2019 Fair Value December 31, 2018 Non-COLI assets held in Deferred Supplemental Compensation Plan Other assets Level 1 $ 651 $ 403 Interest rate swap agreements Accrued expenses/Other current assets Level 2 $ 1,720 $ 195 Earn-out obligation - short-term Current portion of earn-out obligation Level 3 $ 10,700 $ — Earn-out obligation - long-term Earn-out obligation Level 3 $ 14,300 $ — Non-COLI assets held in our deferred supplemental compensation plan consist of equity funds with fair value based on observable inputs such as quoted prices for identical assets in active markets and changes in fair value are recorded as selling, general and administrative expenses. We account for our interest rate swap agreements under the provisions of ASC 815, Derivatives and Hedging , and have determined that our swap agreements qualify as highly effective cash flow hedges. The fair value of the swap agreements, which is a liability of approximately $1.7 million , has been reported in accrued expenses at September 30, 2019 . The fair value of the swap agreements, which was an asset of approximately $195 thousand , was reported in other current assets at December 31, 2018 . The offset, net of an income tax effect of approximately $429 thousand and $49 thousand , was included in accumulated other comprehensive income in the accompanying balance sheets as of September 30, 2019 and December 31, 2018 , respectively. The amounts paid and received on the swap agreements are recorded in interest expense in the period during which the related floating-rate interest is incurred. We determine the fair value of the swap agreements based on a valuation model using primarily observable market data inputs. We utilized an income approach to determine the fair value of our 1st Choice Aerospace acquisition earn-out obligation. Significant unobservable inputs used to value the contingent consideration include projected revenue and cost of services and the discount rate. If a significant increase or decrease in the discount rate occurred in isolation, the result could be significantly higher or lower fair value measurement.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate was 22.1% and 23.2% for the three and nine months ended September 30, 2019 , respectively, and 24.9% and 25.0% for the three and nine months ended September 30, 2018, respectively. Income tax expense during interim periods is based on our estimated annual effective income tax rate plus any discrete items that are recorded in the period in which they occur. Our tax rate is affected by discrete items that may occur in any given year, but may not be consistent from year to year. The lower effective tax rate for the nine months ended September 30, 2019 primarily results from the fair value increase of approximately $1.7 million to our COLI assets and an increase in foreign-derived intangible income ("FDII") deduction estimated for 2019.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements Not Yet Adopted	9 Months Ended
	Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , which requires companies to record an allowance for expected credit losses over the contractual term of financial assets, including short-term trade receivables and contract assets, and expands disclosure requirements for credit quality of financial assets. We will adopt the new standard effective January 1, 2020. We currently are assessing the impact that this standard will have on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The new standard is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. We currently are assessing the impact that this standard will have on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation costs in cloud computing arrangements. The new standard is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. We currently are assessing the impact that this standard will have on our consolidated financial statements.

Nature of Business and Basis _2

Nature of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	Our accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to SEC Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, such financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019 . For further information refer to the consolidated financial statements and footnotes thereto included in our 2018 Form 10-K.
Use of Estimates	The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the financial statements include accruals for contract disallowance reserves, award fee revenues, costs to complete on fixed price contracts, recoverability of goodwill and intangible assets, and earn-out obligations.
Recently Adopted Accounting Pronouncements, Significant Accounting Policies Update, and Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASC 842"), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is required to be adopted using a modified retrospective method and is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB provided an alternative transition method of adoption through ASU No. 2018-11, Targeted Improvements , which provides entities with an optional transition method to apply the transition provisions of ASU 2016-02 at the beginning of the period of adoption. On January 1, 2019, we adopted ASC 842 using the alternative transition method provided by ASU 2018-11 recording right-of-use assets and lease liabilities for our existing leases as of January 1, 2019, as well as a cumulative-effect adjustment to retained earnings of initially applying the new standard as of January 1, 2019. We have elected the package of practical expedients permitted under the transition guidance, which does not require reassessment of prior conclusions related to lease identification, lease classification, and treatment for initial direct lease costs. We have not elected the practical expedients pertaining to the use of hindsight and land easements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , which requires companies to record an allowance for expected credit losses over the contractual term of financial assets, including short-term trade receivables and contract assets, and expands disclosure requirements for credit quality of financial assets. We will adopt the new standard effective January 1, 2020. We currently are assessing the impact that this standard will have on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The new standard is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. We currently are assessing the impact that this standard will have on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation costs in cloud computing arrangements. The new standard is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. We currently are assessing the impact that this standard will have on our consolidated financial statements.
Earnings Per Share	Basic earnings per share ("EPS") has been computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Our calculation of diluted earnings per common share includes the dilutive effects for an assumed vesting of restricted stock awards.
Business Segments	Business Segments Management of our business operations is conducted under three reportable operating segments: Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") and direct sales to the United States Postal Service ("USPS"), the United States Department of Defense ("DoD") and to commercial customers. Aviation Group – Our Aviation Group provides maintenance, repair and overhaul ("MRO") services, parts supply and distribution, and supply chain solutions for commercial aerospace and business and general aviation jet aircraft engines and engine accessories. Federal Services Group – Our Federal Services Group provides engineering, industrial, logistics, foreign military sales, legacy equipment sustainment services, IT and technical and consulting services primarily to DoD and other government agencies. The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by our Chief Executive Officer in deciding how to allocate resources and in assessing performance. We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation.
Fair Value Measurements	The accounting standard for fair value measurements defines fair value, and establishes a market-based framework or hierarchy for measuring fair value. The standard is applicable whenever assets and liabilities are measured at fair value. The fair value hierarchy established in the standard prioritizes the inputs used in valuation techniques into three levels as follows: Level 1–Observable inputs–quoted prices in active markets for identical assets and liabilities; Level 2–Observable inputs other than the quoted prices in active markets for identical assets and liabilities–includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets and amounts derived from valuation models where all significant inputs are observable in active markets; and Level 3–Unobservable inputs–includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions.

Acquisition (Tables)

Acquisition (Tables)	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Schedule of Business Acquisition	Based on our preliminary valuation, the total estimated purchase price has been allocated to assets acquired (including identifiable intangible assets and goodwill) and liabilities assumed, as follows (in thousands): Description Fair Value Cash $ 396 Accounts receivable 7,409 Inventories 6,879 Prepaid expenses and other current assets 382 Property and equipment 4,044 Intangibles - customer related 55,000 Intangibles - trade name 8,000 Goodwill 60,590 Operating lease right-of-use assets 2,643 Other assets 333 Other current liabilities (5,244 ) Long-term operating lease liabilities (2,376 ) $ 138,056 Cash consideration $ 113,056 Acquisition date estimated fair value of earn-out obligation 25,000 Total $ 138,056
Business Acquisition, Pro Forma Information	The unaudited consolidated pro forma results of operations are as follows (in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Revenue $ 198,326 $ 181,464 $ 558,915 $ 550,452 Net Income $ 10,532 $ 10,294 $ 27,596 $ 26,465 Basic earnings per share $ 0.96 $ 0.94 $ 2.52 $ 2.43 Diluted earnings per share $ 0.95 $ 0.94 $ 2.50 $ 2.42

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	A summary of revenues for our operating groups by customer for the three and nine months ended September 30, 2019 are as follows (in thousands): Three months ended September 30, 2019 Customer Supply Chain Management Aviation Federal Services Total USPS $ 42,282 $ — $ — $ 42,282 DoD 6,935 1,613 76,505 85,053 Commercial 6,015 56,839 — 62,854 Other government 137 734 7,266 8,137 $ 55,369 $ 59,186 $ 83,771 $ 198,326 Nine months ended September 30, 2019 Customer Supply Chain Management Aviation Federal Services Total USPS $ 127,077 $ — $ — $ 127,077 DoD 18,238 2,768 201,828 222,834 Commercial 15,085 159,400 1,104 175,589 Other government 478 1,385 29,993 31,856 $ 160,878 $ 163,553 $ 232,925 $ 557,356 A summary of revenues for our operating groups by customer for the three and nine months ended September 30, 2018 are as follows (in thousands): Three months ended September 30, 2018 Customer Supply Chain Management Aviation Federal Services Total USPS $ 43,031 $ — $ — $ 43,031 DoD 5,479 913 73,610 80,002 Commercial 3,324 32,641 62 36,027 Other government — 446 9,425 9,871 $ 51,834 $ 34,000 $ 83,097 $ 168,931 Nine months ended September 30, 2018 Customer Supply Chain Management Aviation Federal Services Total USPS $ 130,151 $ — $ — $ 130,151 DoD 21,180 3,153 225,509 249,842 Commercial 10,123 98,213 295 108,631 Other government 507 1,188 25,903 27,598 $ 161,961 $ 102,554 $ 251,707 $ 516,222 A summary of revenues for our operating groups by contract type for the three and nine months ended September 30, 2019 are as follows (in thousands): Three months ended September 30, 2019 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 315 $ 41,691 $ 42,006 Fixed-price 55,369 26,268 19,078 100,715 Time and materials — 32,603 23,002 55,605 Total revenues $ 55,369 $ 59,186 $ 83,771 $ 198,326 Nine months ended September 30, 2019 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 696 $ 103,027 $ 103,723 Fixed-price 160,878 75,260 58,098 294,236 Time and materials — 87,597 71,800 159,397 Total revenues $ 160,878 $ 163,553 $ 232,925 $ 557,356 A summary of revenues for our operating groups by contract type for the three and nine months ended September 30, 2018 are as follows (in thousands): Three months ended September 30, 2018 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ — $ 44,638 $ 44,638 Fixed-price 51,834 20,152 19,234 91,220 Time and materials — 13,848 19,225 33,073 Total revenues $ 51,834 $ 34,000 $ 83,097 $ 168,931 Nine months ended September 30, 2018 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 1,098 $ 137,560 $ 138,658 Fixed-price 161,961 59,525 51,577 273,063 Time and materials — 41,931 62,570 104,501 Total revenues $ 161,961 $ 102,554 $ 251,707 $ 516,222

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consisted of the following (in thousands): September 30, December 31, 2019 2018 Bank credit facility - term loan $ 73,300 $ 80,800 Bank credit facility - revolver loans 196,966 81,934 Principal amount of long-term debt 270,266 162,734 Less debt issuance costs (1,735 ) (2,135 ) Total long-term debt 268,531 160,599 Less current portion (10,716 ) (9,466 ) Long-term debt, less current portion $ 257,815 $ 151,133
Schedule of Term Loan Payments	Our required term loan payments after September 30, 2019 are as follows (in thousands): 2019 $ 2,500 2020 11,875 2021 14,375 2022 15,000 2023 29,550 Total $ 73,300

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Basic weighted average common shares outstanding 10,970,123 10,881,106 10,953,581 10,874,331 Effect of dilutive shares 89,958 54,006 82,370 42,658 Diluted weighted average common shares outstanding 11,060,081 10,935,112 11,035,951 10,916,989

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Components of Lease Expense	Our lease cost for the three and nine months ended September 30, 2019 included the following components (in thousands): Three months Nine months Operating lease cost $ 1,465 $ 4,715 Short-term lease cost 146 445 Less: sublease income (251 ) (791 ) Total lease cost, net $ 1,360 $ 4,369
Maturities of Operating Lease Liabilities	The table below summarizes future minimum lease payments under operating leases, recorded on the balance sheet, as of September 30, 2019 (in thousands): Operating Leases Last three months of 2019 $ 972 2020 5,486 2021 5,192 2022 5,156 2023 4,790 After 2023 14,149 Minimum lease payments 35,745 Less: imputed interest (6,654 ) Present value of minimum lease payments 29,091 Less: current maturities of lease liabilities (3,967 ) Long-term lease liabilities $ 25,124

Business Segments and Custome_2

Business Segments and Customer Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Information	Our segment information is as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Revenues: Supply Chain Management Group $ 55,369 $ 51,834 $ 160,878 $ 161,961 Aviation Group 59,186 34,000 163,553 102,554 Federal Services Group 83,771 83,097 232,925 251,707 Total revenues $ 198,326 $ 168,931 $ 557,356 $ 516,222 Operating income: Supply Chain Management Group $ 7,843 $ 7,783 $ 22,388 $ 23,547 Aviation Group 6,568 2,184 14,820 7,291 Federal Services Group 4,524 6,186 12,968 12,270 Corporate/unallocated expenses (1,720 ) (456 ) (4,732 ) (1,963 ) Operating income $ 17,215 $ 15,697 $ 45,444 $ 41,145
Revenue by Customer	Our revenues by customer is as follows (dollars in thousands): Three months ended September 30, Nine months ended September 30, Customer 2019 % 2018 % 2019 % 2018 % USPS $ 42,282 21.3 % $ 43,031 25.5 % $ 127,077 22.8 % $ 130,151 25.2 % U.S. Navy 30,123 15.2 % 37,013 21.9 % 72,930 13.1 % 115,294 22.4 % U.S. Army 48,529 24.5 % 38,167 22.6 % 132,581 23.8 % 122,502 23.7 % U.S. Air Force 6,401 3.2 % 4,822 2.9 % 17,323 3.1 % 12,046 2.3 % Total - DoD 85,053 42.9 % 80,002 47.4 % 222,834 40.0 % 249,842 48.4 % Commercial aviation 56,839 28.7 % 32,641 19.3 % 159,400 28.6 % 98,213 19.0 % Other commercial 6,015 3.0 % 3,386 2.0 % 16,189 2.9 % 10,418 2.0 % Total - Commercial 62,854 31.7 % 36,027 21.3 % 175,589 31.5 % 108,631 21.0 % Other government 8,137 4.1 % 9,871 5.8 % 31,856 5.7 % 27,598 5.4 % Total $ 198,326 100 % $ 168,931 100 % $ 557,356 100 % $ 516,222 100 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill by Operating Segment	Changes in goodwill for the nine months ended September 30, 2019 are as follows (in thousands): Supply Chain Management Federal Services Aviation Total Balance as of December 31, 2018 $ 63,190 $ 30,883 $ 104,549 $ 198,622 Increase from acquisition — — 60,590 60,590 Balance as of September 30, 2019 $ 63,190 $ 30,883 $ 165,139 $ 259,212
Schedule of Intangible Assets	Intangible assets, net were comprised of the following (in thousands): Cost Accumulated Amortization Accumulated Impairment Loss Net Intangible Assets September 30, 2019 Contract and customer-related $ 228,094 $ (98,278 ) $ (1,025 ) $ 128,791 Acquired technologies 12,400 (9,378 ) — 3,022 Trade names 24,670 (13,576 ) — 11,094 Total $ 265,164 $ (121,232 ) $ (1,025 ) $ 142,907 December 31, 2018 Contract and customer-related $ 173,094 $ (86,076 ) $ (1,025 ) $ 85,993 Acquired technologies 12,400 (8,533 ) — 3,867 Trade names 16,670 (11,638 ) — 5,032 Total $ 202,164 $ (106,247 ) $ (1,025 ) $ 94,892

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Assets and Liabilities	The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 and the level they fall within the fair value hierarchy (in thousands): Amounts Recorded at Fair Value Financial Statement Classification Fair Value Hierarchy Fair Value September 30, 2019 Fair Value December 31, 2018 Non-COLI assets held in Deferred Supplemental Compensation Plan Other assets Level 1 $ 651 $ 403 Interest rate swap agreements Accrued expenses/Other current assets Level 2 $ 1,720 $ 195 Earn-out obligation - short-term Current portion of earn-out obligation Level 3 $ 10,700 $ — Earn-out obligation - long-term Earn-out obligation Level 3 $ 14,300 $ —

Nature of Business and Basis _3

Nature of Business and Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Sep. 30, 2019	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Right-of-use assets		$ 24,375	$ 0
Lease liabilities		$ 29,091
ASU 2016-02
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Right-of-use assets	$ 24,300
Property and equipment	2,800
Lease liabilities	29,600
Cumulative effect on retained earnings	$ 1,900

Acquisition - Narrative (Detail

Acquisition - Narrative (Details) - USD ($) $ in Thousands	Jan. 10, 2019	Sep. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill		$ 259,212	$ 198,622
Employment Contracts
Business Acquisition [Line Items]
Term of contract	3 years
Noncompete Agreements
Business Acquisition [Line Items]
Term of contract	5 years
1st Choice Aerospace
Business Acquisition [Line Items]
Business acquisition, percentage acquired	100.00%
Cash consideration	$ 113,056
Working capital adjustment	1,100
Earn-out payments	40,000
Escrow	1,100
Revenue		45,100
Net Income		10,500
Amortization of intangible assets		3,000
Corporate costs		1,200
Goodwill	$ 60,590
Acquisition related costs		$ 408
1st Choice Aerospace | Customer relationships
Business Acquisition [Line Items]
Weighted average useful life	17 years
1st Choice Aerospace | Trade Name
Business Acquisition [Line Items]
Weighted average useful life	9 years

Acquisition - Schedule of Busin

Acquisition - Schedule of Business Acquisition (Details) - USD ($) $ in Thousands	Jan. 10, 2019	Sep. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill		$ 259,212	$ 198,622
1st Choice Aerospace
Business Acquisition [Line Items]
Cash	$ 396
Accounts receivable	7,409
Inventories	6,879
Prepaid expenses and other current assets	382
Property and equipment	4,044
Goodwill	60,590
Operating lease right-of-use assets	2,643
Other assets	333
Other current liabilities	(5,244)
Long-term operating lease liabilities	(2,376)
Assets acquired and liabilities assumed, net	138,056
Cash consideration	113,056
Acquisition date estimated fair value of earn-out obligation	25,000
Total	138,056
Customer Related | 1st Choice Aerospace
Business Acquisition [Line Items]
Intangible assets	55,000
Trade Name | 1st Choice Aerospace
Business Acquisition [Line Items]
Intangible assets	$ 8,000

Acquisition - Business Acquisit

Acquisition - Business Acquisition, Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Business Combinations [Abstract]
Revenue	$ 198,326	$ 181,464	$ 558,915	$ 550,452
Net Income	$ 10,532	$ 10,294	$ 27,596	$ 26,465
Basic earnings per share (in dollars per share)	$ 0.96	$ 0.94	$ 2.52	$ 2.43
Diluted earnings per share (in dollars per share)	$ 0.95	$ 0.94	$ 2.50	$ 2.42

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 198,326	$ 168,931	$ 557,356	$ 516,222
Cost-type
Disaggregation of Revenue [Line Items]
Revenues	42,006	44,638	103,723	138,658
Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	100,715	91,220	294,236	273,063
Time and materials
Disaggregation of Revenue [Line Items]
Revenues	55,605	33,073	159,397	104,501
USPS
Disaggregation of Revenue [Line Items]
Revenues	42,282	43,031	127,077	130,151
DoD
Disaggregation of Revenue [Line Items]
Revenues	85,053	80,002	222,834	249,842
Commercial
Disaggregation of Revenue [Line Items]
Revenues	62,854	36,027	175,589	108,631
Other government
Disaggregation of Revenue [Line Items]
Revenues	8,137	9,871	31,856	27,598
Supply Chain Management
Disaggregation of Revenue [Line Items]
Revenues	55,369	51,834	160,878	161,961
Supply Chain Management | Cost-type
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Supply Chain Management | Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	55,369	51,834	160,878	161,961
Supply Chain Management | Time and materials
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Supply Chain Management | USPS
Disaggregation of Revenue [Line Items]
Revenues	42,282	43,031	127,077	130,151
Supply Chain Management | DoD
Disaggregation of Revenue [Line Items]
Revenues	6,935	5,479	18,238	21,180
Supply Chain Management | Commercial
Disaggregation of Revenue [Line Items]
Revenues	6,015	3,324	15,085	10,123
Supply Chain Management | Other government
Disaggregation of Revenue [Line Items]
Revenues	137	0	478	507
Aviation
Disaggregation of Revenue [Line Items]
Revenues	59,186	34,000	163,553	102,554
Aviation | Cost-type
Disaggregation of Revenue [Line Items]
Revenues	315	0	696	1,098
Aviation | Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	26,268	20,152	75,260	59,525
Aviation | Time and materials
Disaggregation of Revenue [Line Items]
Revenues	32,603	13,848	87,597	41,931
Aviation | USPS
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Aviation | DoD
Disaggregation of Revenue [Line Items]
Revenues	1,613	913	2,768	3,153
Aviation | Commercial
Disaggregation of Revenue [Line Items]
Revenues	56,839	32,641	159,400	98,213
Aviation | Other government
Disaggregation of Revenue [Line Items]
Revenues	734	446	1,385	1,188
Federal Services
Disaggregation of Revenue [Line Items]
Revenues	83,771	83,097	232,925	251,707
Federal Services | Cost-type
Disaggregation of Revenue [Line Items]
Revenues	41,691	44,638	103,027	137,560
Federal Services | Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	19,078	19,234	58,098	51,577
Federal Services | Time and materials
Disaggregation of Revenue [Line Items]
Revenues	23,002	19,225	71,800	62,570
Federal Services | USPS
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Federal Services | DoD
Disaggregation of Revenue [Line Items]
Revenues	76,505	73,610	201,828	225,509
Federal Services | Commercial
Disaggregation of Revenue [Line Items]
Revenues	0	62	1,104	295
Federal Services | Other government
Disaggregation of Revenue [Line Items]
Revenues	$ 7,266	$ 9,425	$ 29,993	$ 25,903

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unbilled receivables, net	$ 54,151		$ 54,151		$ 41,255
Contract with customer, liability	4,900		4,900		$ 5,000
Contract with customer, liability, revenue recognized			2,100	$ 8,100
Revenue, remaining performance obligation	$ 252,000		$ 252,000
Sales Revenue, Net | Product Concentration Risk | Transferred over Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk, percentage	57.00%	57.00%	57.00%	57.00%
Sales Revenue, Net | Product Concentration Risk | Transferred at Point in Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk, percentage	43.00%	43.00%	43.00%	43.00%

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details)	Sep. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	97.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	3.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period

Debt (Details)

Debt (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt		$ 270,266,000		$ 270,266,000		$ 162,734,000
Less debt issuance costs		(1,735,000)		(1,735,000)		(2,135,000)
Total long-term debt		268,531,000		268,531,000		160,599,000
Less current portion		(10,716,000)		(10,716,000)		(9,466,000)
Long-term debt, less current portion		257,815,000		257,815,000		151,133,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Total long-term debt		268,531,000		$ 268,531,000		160,599,000
LIBOR
Debt Instrument [Line Items]
Base margin				2.50%
Base Rate
Debt Instrument [Line Items]
Base margin				1.25%
Amended and Restated
Debt Instrument [Line Items]
Less debt issuance costs		$ (1,500,000)		$ (1,500,000)
Amortization period of debt issuance costs	5 years
Increase in maximum availability				$ 100,000,000
Duration of interest rate cash flow hedge				3 years
Effective interest rate		4.91%		4.91%
Interest expense, net		$ 3,600,000	$ 1,900,000	$ 9,900,000	$ 5,100,000
Amended and Restated | Swap
Debt Instrument [Line Items]
Derivative notional amount		125,000,000		125,000,000		50,000,000
Term Loan
Debt Instrument [Line Items]
Long-term debt		73,300,000		73,300,000		80,800,000
Total long-term debt		73,300,000		73,300,000
Long-term Debt, Fiscal Year Maturity [Abstract]
2019		2,500,000		2,500,000
2020		11,875,000		11,875,000
2021		14,375,000		14,375,000
2022		15,000,000		15,000,000
2023		29,550,000		29,550,000
Total long-term debt		73,300,000		73,300,000
Revolving Loans
Debt Instrument [Line Items]
Long-term debt		196,966,000		196,966,000		81,934,000
Revolving loans maximum borrowing capacity		300,000,000		300,000,000
Letters of credit outstanding		$ 72,000		$ 72,000		$ 57,000
Minimum | Amended and Restated
Debt Instrument [Line Items]
Interest rate range		4.53%		4.53%
Maximum | Amended and Restated
Debt Instrument [Line Items]
Interest rate range		6.25%		6.25%

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding (in shares)	10,970,123	10,881,106	10,953,581	10,874,331
Effect of dilutive shares (in shares)	89,958	54,006	82,370	42,658
Diluted weighted average common shares outstanding (in shares)	11,060,081	10,935,112	11,035,951	10,916,989

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Millions	Apr. 19, 2018subcontractor	Sep. 30, 2019USD ($)
Loss Contingencies [Line Items]
Cash payments | $		$ 4.8
Weighted average remaining lease term		6 years 9 months 18 days
Weighted average discount rate, percent		6.00%
Joseph Waggoner v VSE re Overtime Compensation
Loss Contingencies [Line Items]
Number of subcontractors | subcontractor	2
Minimum
Loss Contingencies [Line Items]
Lease term		2 years
Maximum
Loss Contingencies [Line Items]
Lease term		15 years

Commitments and Contingencies_2

Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 1,465	$ 4,715
Short-term lease cost	146	445
Less: sublease income	(251)	(791)
Total lease cost, net	$ 1,360	$ 4,369

Commitments and Contingencies_3

Commitments and Contingencies - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Last three months of 2019	$ 972
2020	5,486
2021	5,192
2022	5,156
2023	4,790
After 2023	14,149
Minimum lease payments	35,745
Less: imputed interest	(6,654)
Present value of minimum lease payments	29,091
Less: current maturities of lease liabilities	(3,967)
Long-term operating lease liabilities	$ 25,124	$ 0

Business Segments and Custome_3

Business Segments and Customer Information - Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)
Segment Reporting [Abstract]
Number of reportable operating segments | segment			3
Segment Reporting Information [Line Items]
Revenues	$ 198,326	$ 168,931	$ 557,356	$ 516,222
Operating income	17,215	15,697	45,444	41,145
Supply Chain Management Group
Segment Reporting Information [Line Items]
Revenues	55,369	51,834	160,878	161,961
Aviation Group
Segment Reporting Information [Line Items]
Revenues	59,186	34,000	163,553	102,554
Federal Services
Segment Reporting Information [Line Items]
Revenues	83,771	83,097	232,925	251,707
Operating Segments | Supply Chain Management Group
Segment Reporting Information [Line Items]
Revenues	55,369	51,834	160,878	161,961
Operating income	7,843	7,783	22,388	23,547
Operating Segments | Aviation Group
Segment Reporting Information [Line Items]
Revenues	59,186	34,000	163,553	102,554
Operating income	6,568	2,184	14,820	7,291
Operating Segments | Federal Services
Segment Reporting Information [Line Items]
Revenues	83,771	83,097	232,925	251,707
Operating income	4,524	6,186	12,968	12,270
Corporate/unallocated expenses
Segment Reporting Information [Line Items]
Operating income	$ (1,720)	$ (456)	$ (4,732)	$ (1,963)

Business Segments and Custome_4

Business Segments and Customer Information - Major Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue, Major Customer [Line Items]
Revenues	$ 198,326	$ 168,931	$ 557,356	$ 516,222
USPS
Revenue, Major Customer [Line Items]
Revenues	42,282	43,031	127,077	130,151
U.S. Navy
Revenue, Major Customer [Line Items]
Revenues	30,123	37,013	72,930	115,294
U.S. Army
Revenue, Major Customer [Line Items]
Revenues	48,529	38,167	132,581	122,502
U.S. Air Force
Revenue, Major Customer [Line Items]
Revenues	6,401	4,822	17,323	12,046
Total - DoD
Revenue, Major Customer [Line Items]
Revenues	85,053	80,002	222,834	249,842
Commercial aviation
Revenue, Major Customer [Line Items]
Revenues	56,839	32,641	159,400	98,213
Other commercial
Revenue, Major Customer [Line Items]
Revenues	6,015	3,386	16,189	10,418
Total - Commercial
Revenue, Major Customer [Line Items]
Revenues	62,854	36,027	175,589	108,631
Other government
Revenue, Major Customer [Line Items]
Revenues	$ 8,137	$ 9,871	$ 31,856	$ 27,598
Customer Concentration Risk | Sales Revenue, Net
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	100.00%	100.00%	100.00%	100.00%
Customer Concentration Risk | Sales Revenue, Net | USPS
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	21.30%	25.50%	22.80%	25.20%
Customer Concentration Risk | Sales Revenue, Net | U.S. Navy
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	15.20%	21.90%	13.10%	22.40%
Customer Concentration Risk | Sales Revenue, Net | U.S. Army
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	24.50%	22.60%	23.80%	23.70%
Customer Concentration Risk | Sales Revenue, Net | U.S. Air Force
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	3.20%	2.90%	3.10%	2.30%
Customer Concentration Risk | Sales Revenue, Net | Total - DoD
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	42.90%	47.40%	40.00%	48.40%
Customer Concentration Risk | Sales Revenue, Net | Commercial aviation
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	28.70%	19.30%	28.60%	19.00%
Customer Concentration Risk | Sales Revenue, Net | Other commercial
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	3.00%	2.00%	2.90%	2.00%
Customer Concentration Risk | Sales Revenue, Net | Total - Commercial
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	31.70%	21.30%	31.50%	21.00%
Customer Concentration Risk | Sales Revenue, Net | Other government
Revenue, Major Customer [Line Items]
Percentage of revenue by customer	4.10%	5.80%	5.70%	5.40%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Goodwill [Roll Forward]
Balance as of beginning of period			$ 198,622
Increase from acquisition			60,590
Balance as of end of period	$ 259,212		259,212
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	5,000	$ 4,000	15,000	$ 12,000
Finite-Lived Intangible Assets, Net [Abstract]
Cost	265,164		265,164		$ 202,164
Accumulated Amortization	(121,232)		(121,232)		(106,247)
Accumulated Impairment Loss	(1,025)		(1,025)		(1,025)
Net Intangible Assets	142,907		142,907		94,892
Supply Chain Management
Goodwill [Roll Forward]
Balance as of beginning of period			63,190
Increase from acquisition			0
Balance as of end of period	63,190		63,190
Federal Services
Goodwill [Roll Forward]
Balance as of beginning of period			30,883
Increase from acquisition			0
Balance as of end of period	30,883		30,883
Aviation
Goodwill [Roll Forward]
Balance as of beginning of period			104,549
Increase from acquisition			60,590
Balance as of end of period	165,139		165,139
Contract and customer-related
Finite-Lived Intangible Assets, Net [Abstract]
Cost	228,094		228,094		173,094
Accumulated Amortization	(98,278)		(98,278)		(86,076)
Accumulated Impairment Loss	(1,025)		(1,025)		(1,025)
Net Intangible Assets	128,791		128,791		85,993
Acquired technologies
Finite-Lived Intangible Assets, Net [Abstract]
Cost	12,400		12,400		12,400
Accumulated Amortization	(9,378)		(9,378)		(8,533)
Accumulated Impairment Loss	0		0		0
Net Intangible Assets	3,022		3,022		3,867
Trade names
Finite-Lived Intangible Assets, Net [Abstract]
Cost	24,670		24,670		16,670
Accumulated Amortization	(13,576)		(13,576)		(11,638)
Accumulated Impairment Loss	0		0		0
Net Intangible Assets	$ 11,094		$ 11,094		$ 5,032

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Earn-out obligation - short-term	$ 10,700	$ 0
Earn-out obligation - long-term	14,300	0
Fair Value, Measurements, Recurring | Level 1 | Other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-COLI assets held in Deferred Supplemental Compensation Plan	651	403
Fair Value, Measurements, Recurring | Level 2 | Accrued expenses/Other current assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap agreements	1,720	195
Fair Value, Measurements, Recurring | Level 3 | Earn-out obligation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Earn-out obligation - short-term	10,700	0
Earn-out obligation - long-term	$ 14,300	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Income tax expense benefit on interest rate swap	$ 429	$ 49
Accrued expenses/Other current assets | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap agreements	$ 1,720	$ 195

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	22.10%	24.90%	23.20%	25.00%
COLO assets fair value increase			$ 1.7

Uncategorized Items - vsec-2019

Label	Element	Value
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 1,695,000
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	1,695,000
Accounting Standards Update 2016-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	1,944,000
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 1,944,000