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Current Backlog Rises to $57.2 Million, Up 96% from Year-End 2018
HOUSTON, TX, Nov. 25, 2019 (GLOBE NEWSWIRE) — ENGlobal Government Services, Inc. (“EGS”), a wholly owned subsidiary of ENGlobal Corporation (NASDAQ: ENG), a leading service provider to the U.S. Department of Defense for engineering, automation, information technology (IT) and operational technology (OT) services, today announced it has received an $11.5 million contract for the maintenance, sustainment and upgrades of Automated Fuel Handling Equipment (AFHE) worldwide with the Defense Logistics Agency (DLA). This contract will be in addition to any awards under the previously announced contract with the DLA.
For a 15-month period, the Company will be providing the required personnel and equipment to maintain, upgrade and install AFHE systems which are located at 23 sites worldwide. The scope of this effort includes services for Preventive Maintenance, Corrective Maintenance, Site Support, Technical Documentation, Engineering Design, and Procurement Support.
“We are pleased to have received this award as a result of superior past performance and the long term, trusted relationships we have built with our government clients,” said John L. Kratzert, Senior Vice President. “This contract allows EGS to continue its exceptional support to our warfighters, providing them with the technology and systems sustainment necessary for the accomplishment of their missions.”
Mr. Kratzert continued, “Speaking on behalf of the entire EGS team, we look forward to continuing our relationship with the Department of Defense, the Defense Logistics Agency and each of the service components. Given our expanded role, we expect to be performing this work out of both our Tulsa and Denver office locations.”
William A. Coskey, P.E., Chairman and Chief Executive Officer added, “I’m proud to say that, with this award, ENGlobal’s total backlog, which represents an estimate of booked projects that have not been completed, has now increased to $57.2 million. This amount represents a 96 percent increase of $28 million on the $29.2 million backlog level that we started with this year.”
Mr. Coskey added, “These amounts give us a great deal of confidence that our shift in strategy is working. A related indicator that’s also positive is current proposal activity – as our Company now has over $200 million in outstanding proposals that are awaiting customer decisions.”
For over 30 years, EGS has provided the Federal Government with design, installation, and maintenance of AFHE Systems, Automated Tank Gauging (ATG), Supervisory Control and Data Acquisition (SCADA), Cyber Security, and Modular Engineered Solutions. EGS has a long history in supporting the U.S. Military with fuel supply chain and IT-related services.

About ENGlobal
ENGlobal (Nasdaq: ENG) is a provider of engineering and automation services primarily to the energy sector throughout the United States and internationally. ENGlobal operates through two business segments: Automation and Engineering. ENGlobal’s Automation segment provides services related to the design, fabrication and implementation of distributed control, instrumentation and process analytical systems. The Engineering segment provides consulting services for the development, management and execution of projects requiring professional engineering, construction management, and related support services. Within ENGlobal’s Engineering segment, ENGlobal Government Services, Inc. provides engineering, design, installation, operations, and maintenance of various government, public sector, and international facilities, specializing in turnkey automation and instrumentation systems for the U.S. Defense industry worldwide. 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, 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 For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ENGlobal’s filings with the Securities and Exchange Commission, including the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.
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Dear customers, employees, and suppliers of ENGlobal:

Since March 16, 2020, we have taken and continue to take precautions to make sure that our employees, customers, and suppliers get through this time of uncertainty as safely as possible.

On March 19, 2020, CISA listed ESSENTIAL CRITICAL INFRASTRUCTURE WORKERS DURING COVID-19 RESPONSE to help State and Local officials as they work to protect their communities, while ensuring continuity of functions critical to public health and safety, as well as economic and national security. This list includes Critical Manufacturing as essential businesses and consists of the following:

“Workers necessary for the manufacturing of materials and products needed for medical supply chains, and for supply chains associated with transportation, energy, communications, food and agriculture, chemical manufacturing, nuclear facilities, the operation of dams, water and wastewater treatment, emergency services, and the defense industrial base. Additionally, workers needed to maintain the continuity of these manufacturing functions and associated supply chains.”

The President’s Coronavirus Guidance for America states that: “If you work in a critical infrastructure industry, as defined by the Department of Homeland Security…you have a special responsibility to maintain your normal work schedule.

As a supplier of essential critical energy and defense infrastructure under these guidelines, ENGlobal will continue to perform our services, so that we are able to fulfill our customers’ needs and support our country’s essential infrastructure and supply chain during this unprecedented time. Thank you for your continued support.