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[zenvesting]

VSR: ruff, that PR seams a bit misleading. It looks like a multiple award "contract vehicle", not an actual task order type of contract. VSR definately should have been a bit more explicit in their PR.

Anyway, my read is that VSR received one of 4 small business awards for a contract vehicle worth up to $600M for all participating contractors. This contract looks like a joint award for 4 small businesses....and who knows how many prime contractors?

My understanding of the way these things work is for example, an Environmental Manager at an Air National Guard base will have some work that needs done.....he will write a request for proposal (RFP) for a specific task order and all the contractors will have the opportunity to bid on it. A certain portion may be reserved for the small business set aside.....so the big prime contractors (URS, TTEK, ERM [for example]) will need to subcontract some portion of their work to a small business. So VSR needs to massage the big contractors to build alliances with them.

There's some very basic definitions of federal contract terms, like ID/IQ, at the following link:
http://www.saic.com/contractcenter/faqs.html

I have bolded some key points in the PR below:

Versar Awarded 10 Year Contract to Support the Air National Guard
Friday July 8, 1:33 pm ET


SPRINGFIELD, Va., July 8 /PRNewswire-FirstCall/ -- VERSAR, Inc. (Amex: VSR - News) announced today that it has been awarded a 10 year contract with the National Guard Bureau to provide environmental engineering, remediation and professional services for the Air National Guard. This is one of four small business awards. The contract is an indefinite delivery/indefinite quantity contract with an estimated capacity of $598 million over a ten year period.
Dr. Ted Prociv, President and CEO of Versar stated, "This award represents a tremendous opportunity to provide services to the Air National Guard nationwide. Supporting our armed services in executing their mission to protect the homeland is a great honor and responsibility that Versar will meet with all its resources."

Versar, Inc., headquartered in Springfield, VA, is a publicly held professional services firm supporting government and industry in national defense/homeland defense programs, environmental health and safety and infrastructure revitalization. Versar operates a number of web sites, including the corporate Web sites, http://www.versar.com , http://www.homelanddefense.com , and http://www.geomet.com ; and a B2B portal for homeland defense products and services, http://www.nbcprotect.com and http://www.dtaps.com .

This press release contains forward-looking information. The forward- looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described herein and in Versar's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended June 30, 2004.


Contact: James Dobbs [phone]
Senior Vice President
Email: [e-mail]

Investor Relations Contact: Andrew J. Kaplan [phone]
Barry Kaplan Associates
623 River Road
Fair Haven, NJ 07704
Email: [e-mail]