VSE Awarded Navy Ship Support Contract

VSE Corporation reported that its Fleet Maintenance Division has been awarded a new multiple award, indefinite delivery, indefinite quantity contract by the U.S. Navy. Under the contract, VSE will provide engineering and technical services to support Naval Sea Systems Command maintenance, overhaul, repair, and alteration of ship systems aboard ships. VSE understands that the Navy awarded similar contracts to six other contractors. The contract is a multiple award, indefinite delivery, indefinite quantity contract, and accordingly, actual VSE revenue estimates for the contract cannot be predicted. Depending on U.S. Navy work requirements and funding availability, the cost-plus-fixed-fee contract includes a base year ceiling amount of $195 million and a total contract ceiling amount of $1.022 billion over a five-year period if all option periods are exercised. VSE Chairman of the Board, President, and CEO/COO Don Ervine said, "We are very pleased to have been selected to support the Navy under this new contract, and we look forward to continuing our support to the fleet under this important program." VSE provides diversified services to the engineering, energy and environment, homeland security and defense services markets from more than 15 locations across the United States and around the world. VSE reported consolidated revenues of $96.7 million and earnings of $1.6 million ($.70 per share basic, $.68 per share diluted) for the six-month period ending June 30, 2004.