ENG Wins Prime Spot on $20 Million Contract with US Army Corps of Engineers

Rhea-AI Summary

ENG (NASDAQ:ENG) has been awarded a prime contractor position by the US Army Corps of Engineers (USACE) for a five-year, $20 million contract aimed at upgrading control systems at hydroelectric facilities in the South Atlantic region. Under this Indefinite Delivery Indefinite Quantity (IDIQ) contract, ENG's wholly owned subsidiary, ENGlobal Government Services (EGS), will compete for task orders related to technology upgrades, new system designs, and maintenance services. This contract highlights ENG's commitment to providing innovative solutions to government projects.

Positive

• Awarded a $20 million contract by USACE, enhancing potential revenue.
• Ability to compete for task orders under the IDIQ framework, which may lead to additional projects.

Negative

• Contract revenues will only be recognized upon the award of specific task orders, leading to uncertainty in future earnings.
• No backlog increase until task orders are awarded, affecting immediate revenue projections.

HOUSTON, TX / ACCESSWIRE / August 18, 2022 / ENG (NASDAQ:ENG), a leading provider of innovative project delivery solutions, today announced that its wholly owned subsidiary, ENGlobal Government Services, Inc. ("EGS"), has been designated as one of three prime contractors by the US Army Corps of Engineers ("USACE") on a $20 million five-year contract to support and upgrade control system installations at hydroelectric facilities within the USACE's South Atlantic region.

As per the terms of the contract, EGS will compete with the other two contractors for the award of task orders for such assignments as technology upgrades and refreshes of existing systems, new system designs and installations, and life cycle maintenance of new and existing systems.

The contract has been designated by USACE as Indefinite Delivery Indefinite Quantity, or IDIQ, meaning that the total quantity of services to be delivered by ESG and the other contractors cannot be determined at the present time. Therefore, this contract will not be included in EGS's backlog until a task order under the contract is awarded.

Commenting on the new award, EGS senior vice president Kevin Holfeld said, "We are extremely proud to expand our services into the Army Corps of Engineers, offering USACE the same innovative and cutting-edge control systems technology we have been providing to the U.S. defense industry worldwide.

"For over fifteen years, ENG has been honored to provide wide-ranging global solutions to meet our government's technology requirements, and through this new selection, we look forward to providing these services for many years to come."

Today's award follows a contract won by EGS on April 28 to implement a Supervisory Control and Data Acquisition, or SCADA, system upgrade and replacement for a large midwestern public school district.

EGS specializes in the turn-key installation and maintenance of automation and instrumentation systems for governmental entities worldwide.

About ENG

ENG is a leading provider of innovative, complete project delivery solutions to the energy sector throughout the United States and internationally. ENG operates through two business segments: Commercial and Government Services. ENG's Commercial segment provides services related to the engineering, design, automation, integration, fabrication and construction of up-stream, mid-stream and down-stream oil, gas and chemical processing. ENG's Government Services group provides similar services to governmental entities. Further information about the Company and its businesses is available at www.ENGlobal.com.

Safe Harbor for Forward-Looking Statements

The statements above regarding the Company's expectations regarding its operations and certain other matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties, including the timing, amount and scope of any awarded task order and the amount of pending proposals and backlog. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in ENGlobal's filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements set forth in the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.

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Contacts:

Market Makers - Investor Relations
Jimmy Caplan
512-329-9505
jimmycaplan@me.com

Market Makers - Media Relations
Rick Eisenberg
212-496-6828
eiscom@msn.com

SOURCE: ENGlobal

View source version on accesswire.com:
https://www.accesswire.com/712497/ENG-Wins-Prime-Spot-on-20-Million-Contract-with-US-Army-Corps-of-Engineers

FAQ

What is the value of the contract ENG won with USACE?

ENG secured a five-year contract valued at $20 million from the US Army Corps of Engineers.

What services will ENG provide under the new contract?

ENG will provide technology upgrades, new system designs, and life cycle maintenance for control systems.

When was the contract awarded to ENG?

The contract was announced on August 18, 2022.

What does IDIQ stand for in the context of ENG's contract?

IDIQ stands for Indefinite Delivery Indefinite Quantity, meaning the total services to be delivered are not fixed at this time.

What is the primary subsidiary of ENG involved in the contract?

ENG's wholly owned subsidiary involved in the contract is ENGlobal Government Services, Inc. (EGS).