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ENGlobal (ENG) Lands U.S. Military Contract for Automated Fuel Handling Equipment Support Services

ENGlobal recenlty announced that it is one of three companies who will be receiving a multiple-award contract by the U.S. Military for the procurement of automated fuel handling equipment (AFHE) support services. Estimated value of the fixed-price contracts is approximately $215 million. Also, there are prospects that the work could continue to June 2017 if the contract reaches the $215 million figure. Contract factors are contingent upon the U.S. Navy exercising all options.

ENG’s role in the project consists of development, engineering, design, integration, fabrication, logistics, installation, quality assurance, logistics, life-cycle management, maintenance, and technical support for AFHE systems. The primary focus for the company will be 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. Work will be performed at the DOD fuel facilities worldwide. Completion date is expected to be by the second quarter 2013.

Edward L. Pagano, ENGlobal’s President and Chief Executive Officer commented, “ENGlobal has a proven track record of delivering exceptional service to SPAWAR since 2007.” “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 further added, “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.”

Further information about the company and its businesses is available at www.ENGlobal.com

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