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ENGlobal Corp. (ENG) Awarded Contract By U.S. Military For Support Services

|Includes: ENGlobal Corporation (ENG)

Today, leading provider of energy-related project delivery solutions, ENGlobal, announced that it is one of three firms to receive a multiple-award contract by the U.S. Military for the procurement of automated fuel handling equipment (AFHE) support services. The cumulative value of the fixed-price contracts is estimated at $215 million. If it reaches that amount, work could continue until June 2017. These factors are contingent upon the U.S. Navy exercising all options.

The scope of the project awarded to ENGlobal includes development, design, engineering, fabrication, integration, installation, quality assurance, logistics, maintenance, life-cycle management, and technical support for AFHE systems. The company will primarily focus on an indefinite-delivery/indefinite-quantity (ID/IQ), cost-plus-fixed-fee contract for technical and maintenance services for automated tank gauging and automated fuel service stations. The work will be performed at Department of Defense fuel facilities worldwide and is expected to be completed by the second quarter 2013.

"ENGlobal has a proven track record of delivering exceptional service to SPAWAR since 2007," remarked Edward L. Pagano, ENGlobal's President and Chief Executive Officer. "This cumulative award for the three firms represents an increase of approximately $89 million over the 2007 award level of $126 million and, as validated by our performance, we will make every effort to increase ENGlobal's portion of the base contract funding."

Mr. Pagano continued, "Our Government Services division, based in Tulsa, Oklahoma, specializes in the turn-key installation and maintenance of automation and instrumentation systems for the U.S. defense industry worldwide. This award demonstrates that our technical capability for AFHE engineering support extends globally to keep Department of Defense fuel systems fully mission capable."

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