ENGlobal (Nasdaq: ENG) Awarded Government Defense Contract

Shawshank, VA 7/5/12 (StreetBeat) -- ENGlobal (Nasdaq: ENG), a leading provider of energy-related project delivery solutions, today announced that it is one of three firms that has been awarded a multiple award contract for the procurement of automated fuel handling equipment (AFHE) support services to the U.S. Military. If all options are exercised by the United States Navy, the cumulative value of these fixed-price contracts for the three firms is an estimated $215 million and, in that case, work could continue until June 2017.

ENGlobal is one of three firms awarded 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 scope of the project includes development, design, engineering, fabrication, integration, installation, quality assurance, logistics, maintenance, life-cycle management and technical support for AFHE systems. Work will be performed at Department of Defense fuel facilities worldwide, and is expected to be completed by the second quarter 2013.

Space and Naval Warfare (SPAWAR) Systems Center Atlantic, in Charleston, South Carolina provides contracting activity administration services on behalf of multiple Department of Defense military departments. The U.S. Department of Defense announced this Navy contract award on June 14, 2012: http://www.defense.gov/contracts/contract.aspx?contractid=4812

"ENGlobal has a proven track record of delivering exceptional service to SPAWAR since 2007," said 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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