Table of Contents

|                                                          |   |                                |
|---------------------------------------------------------------|--------|-------------------------------------|
|  Delaware                                                |   |  54-0649263                    |
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

|                          |   |                                            |
|-------------------------------|--------|-------------------------------------------------|
|  Title of Each Class     |   |  Name of each exchange on which registered |
| Common Stock, $0.05 par value |   | The NASDAQ Global Select Market                 |

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| TABLE OF CONTENTS             |
|-------------------------------|
|                          |   |   |
|                          |   |   |
|                          |   | Page |
| PART I. Financial Information |   |   |
|                          |   |   |
| ITEM 1.                       | Financial Statements (unaudited) |   |
|                          |   |   |
|                          | Consolidated Balance Sheets as of  September 30, 2010 and December 31, 2009 | 4 |
|                          |   |   |
|                          | Consolidated Statements of Income for the three- and nine- months ended September 30, 2010 and 2009 | 5 |
|                          |   |   |
|                          | Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and 2009 | 6 |
|                          |   |   |
|                          | Notes to Unaudited Consolidated Financial Statements | 7 |
|                          |   |   |
| ITEM 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 |
|                          |   |   |
| ITEM 3.                       | Quantitative and Qualitative Disclosures About Market Risks | 27 |
|                          |   |   |
| ITEM 4.                       | Controls and Procedures | 27 |
|                          |   |   |
|                          |   |   |
| PART II. Other Information    |   |   |
|                          |   |   |
| ITEM 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds | 27 |
|                          |   |   |
| ITEM 6.                       | Exhibits, Financial Statements and Schedules | 27 |
|                          |   |   |
|                          | Signatures | 28 |
|                          |   |   |

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PART I.

|  Consolidated Balance Sheets (Unaudited) |
|----------------------------------------------------|
| (in thousands except share and per share amounts)  |

|                                                                                                                                               |   |          |    |   |         |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
|                                                                                                                                               |   | September 30, |    |   | December 31, |   |
|                                                                                                                                               |   | 2010          |    |   | 2009         |   |
| Assets                                                                                                                                             |   |          |    |   |         |   |
| Current assets:                                                                                                                                    |   |          |    |   |         |   |
| Cash and cash equivalents                                                                                                                          |   | $             | 1,963   |   |         | $      | 8,024 |   |
| Receivables, principally U.S. Government, net                                                                                                      |   |          | 145,076 |   |         |   | 175,185 |   |
| Deferred tax assets                                                                                                                                |   |          | 1,522   |   |         |   | 2,036 |   |
| Other current assets                                                                                                                               |   |          | 10,355  |   |         |   | 7,979 |   |
|     Total current assets                                                                                                       |   |          | 158,916 |   |         |   | 193,224 |   |
|                                                                                                                                               |   |          |    |   |         |   |   |   |
| Property and equipment, net                                                                                                                        |   |          | 40,055  |   |         |   | 24,683 |   |
| Intangible assets                                                                                                                                  |   |          | 25,866  |   |         |   | 9,336 |   |
| Goodwill                                                                                                                                           |   |          | 35,649  |   |         |   | 19,530 |   |
| Other assets                                                                                                                                       |   |          | 9,910   |   |         |   | 7,217 |   |
| Deferred tax assets                                                                                                                                |   |          | 484     |   |         |   | - |   |
|     Total assets                                                                                                               |   | $             | 270,880 |   |         | $      | 253,990 |   |
|                                                                                                                                               |   |          |    |   |         |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                                         |   |          |    |   |         |   |   |   |
| Current liabilities:                                                                                                                               |   |          |    |   |         |   |   |   |
| Current portion of long-term debt                                                                                                                  |   | $             | 7,222   |   |         | $      | - |   |
| Accounts payable                                                                                                                                   |   |          | 65,911  |   |         |   | 112,995 |   |
| Accrued expenses                                                                                                                                   |   |          | 34,379  |   |         |   | 34,069 |   |
| Dividends payable                                                                                                                                  |   |          | 312     |   |         |   | 258 |   |
|     Total current liabilities                                                                                                  |   |          | 107,824 |   |         |   | 147,322 |   |
|                                                                                                                                               |   |          |    |   |         |   |   |   |
| Long-term debt                                                                                                                                     |   |          | 12,778  |   |         |   | - |   |
| Deferred compensation                                                                                                                              |   |          | 5,762   |   |         |   | 3,934 |   |
| Deferred income taxes                                                                                                                              |   |          | -       |   |         |   | 324 |   |
| Long-term lease obligations                                                                                                                        |   |          | 17,500  |   |         |   | 1,100 |   |
| Other liabilities                                                                                                                                  |   |          | 8,031   |   |         |   | - |   |
|     Total liabilities                                                                                                          |   |          | 151,895 |   |         |   | 152,680 |   |
|                                                                                                                                               |   |          |    |   |         |   |   |   |
| Commitments and contingencies                                                                                                                      |   |          |    |   |         |   |   |   |
|                                                                                                                                               |   |          |    |   |         |   |   |   |
| Stockholders’ equity:                                                                                                                        |   |          |    |   |         |   |   |   |
| Common stock, par value $0.05 per share, authorized 15,000,000 shares; issued and outstanding 5,192,202 and 5,170,190, respectively |   |          | 260     |   |         |   | 258 |   |
| Additional paid-in capital                                                                                                                         |   |          | 15,557  |   |         |   | 15,720 |   |
| Retained earnings                                                                                                                                  |   |          | 103,168 |   |         |   | 85,332 |   |
|     Total stockholders’ equity                                                                                           |   |          | 118,985 |   |         |   | 101,310 |   |
|     Total liabilities and stockholders’ equity                                                                           |   | $             | 270,880 |   |         | $      | 253,990 |   |

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| Consolidated Statements of Income (Unaudited)           |
|---------------------------------------------------------|
|  (in thousands except share and per share amounts) |

|                                         |   | For the three months |      |   | For the nine months |   |
|----------------------------------------------|--------|----------------------|-----------|--------|---------------------|--------|
|                                         |   | ended September 30,  |      |   | ended September 30, |   |
|                                         |   | 2010                 |      |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |
| Revenues                                     |   | $                    | 212,943   |   |                | $      | 263,068 |   |   | $ | 653,592 |   |   | $ | 758,632 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Contract costs                               |   |                 | 200,248   |   |                |   | 250,144 |   |   |   | 621,538 |   |   |   | 727,393 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses |   |                 | 850       |   |                |   | 422 |   |   |   | 1,605 |   |   |   | 804 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                             |   |                 | 11,845    |   |                |   | 12,502 |   |   |   | 30,449 |   |   |   | 30,435 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense (income), net               |   |                 | 61        |   |                |   | 3 |   |   |   | 75 |   |   |   | (116 | ) |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                   |   |                 | 11,784    |   |                |   | 12,499 |   |   |   | 30,374 |   |   |   | 30,551 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                   |   |                 | 4,566     |   |                |   | 4,773 |   |   |   | 11,655 |   |   |   | 11,743 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                   |   | $                    | 7,218     |   |                | $      | 7,726 |   |   | $ | 18,719 |   |   | $ | 18,808 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                     |   | $                    | 1.39      |   |                | $      | 1.51 |   |   | $ | 3.61 |   |   | $ | 3.67 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average shares outstanding    |   |                 | 5,192,202 |   |                |   | 5,131,869 |   |   |   | 5,188,217 |   |   |   | 5,124,937 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                   |   | $                    | 1.39      |   |                | $      | 1.50 |   |   | $ | 3.61 |   |   | $ | 3.66 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Diluted weighted average shares outstanding  |   |                 | 5,192,202 |   |                |   | 5,146,454 |   |   |   | 5,188,217 |   |   |   | 5,138,700 |   |
|                                         |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Dividends declared per share                 |   | $                    | 0.060     |   |                | $      | 0.050 |   |   | $ | 0.170 |   |   | $ | 0.145 |   |

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|  Consolidated Statements of Cash Flows (Unaudited)    |
|---------------------------------------------------------------------------|
|  (in thousands)                                                      |

|                                                                                                                              |   | For the nine months |     |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|----------|
|                                                                                                                              |   | ended September 30, |     |
|                                                                                                                              |   | 2010                |     |   | 2009 |   |
| Cash flows from operating activities:                                                                                             |   |                |     |   |   |   |
|   Net income                                                                                                            |   | $                   | 18,719   |   |   | $ | 18,808 |   |
|                                                                                                                         |   |                |     |   |   |   |   |   |
|  Adjustments to reconcile net income to net cash provided by operating activities:                                           |   |                |     |   |   |   |   |   |
|       Depreciation and amortization                                             |   |                | 6,479    |   |   |   | 5,576 |   |
|       Loss (gain) on sale of property and equipment         |   |                | 70       |   |   |   | (139 | ) |
|       Deferred taxes                                                  |   |                | (294     | ) |   |   | (300 | ) |
|       Stock-based compensation                                                                      |   |                | 830      |   |   |   | 787 |   |
|       Excess tax benefits on stock-based compensation                                               |   |                | -        |   |   |   | (13 | ) |
| Changes in operating assets and liabilities, net of impact of acquisition:                                                        |   |                |     |   |   |   |   |   |
|       Receivables, net                                                                    |   |                | 37,923   |   |   |   | 35,445 |   |
|       Other current assets and noncurrent assets                                          |   |                | (4,919   | ) |   |   | 2,070 |   |
|       Accounts payable and deferred compensation                                                    |   |                | (45,767  | ) |   |   | (43,238 | ) |
|       Accrued expenses                                                                    |   |                | (3,013   | ) |   |   | 343 |   |
|       Other liabilities                                                                             |   |                | 57       |   |   |   | 108 |   |
|                                                                                                                              |   |                |     |   |   |   |   |   |
|        Net cash provided by operating activities                                               |   |                | 10,085   |   |   |   | 19,447 |   |
|                                                                                                                              |   |                |     |   |   |   |   |   |
| Cash flows from investing activities:                                                                                             |   |                |     |   |   |   |   |   |
|   Purchases of property and equipment                                                                                   |   |                | (3,631   | ) |   |   | (7,135 | ) |
|   Proceeds from the sale of property and equipment                                                                      |   |                | -        |   |   |   | 150 |   |
|   Cash paid for acquisition, net of cash acquired                                                                       |   |                | (29,841  | ) |   |   | - |   |
|   Contingent consideration payments                                                                                     |   |                | (1,845   | ) |   |   | (1,646 | ) |
|                                                                                                                              |   |                |     |   |   |   |   |   |
|        Net cash used in investing activities                                                   |   |                | (35,317  | ) |   |   | (8,631 | ) |
|                                                                                                                              |   |                |     |   |   |   |   |   |
| Cash flows from financing activities:                                                                                             |   |                |     |   |   |   |   |   |
|    Borrowings on loan arrangement                                                                                  |   |                | 159,614  |   |   |   | 146,243 |   |
|    Repayments on loan arrangement                                                                                  |   |                | (139,614 | ) |   |   | (152,919 | ) |
|    Dividends paid                                                                                                  |   |                | (829     | ) |   |   | (716 | ) |
|    Excess tax benefits on stock-based compensation                                                                 |   |                | -        |   |   |   | 13 |   |
|    Proceeds from the exercise of stock options                                                                     |   |                | -        |   |   |   | 31 |   |
|                                                                                                                              |   |                |     |   |   |   |   |   |
|        Net cash provided by (used in) financing activities                                |   |                | 19,171   |   |   |   | (7,348 | ) |
|                                                                                                                              |   |                |     |   |   |   |   |   |
|                                                                                                                              |   |                |     |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                                                    |   |                | (6,061   | ) |   |   | 3,468 |   |
|   Cash and cash equivalents at beginning of period                                                            |   |                | 8,024    |   |   |   | 638 |   |
|   Cash and cash equivalents at end of period                                                                            |   | $                   | 1,963    |   |   | $ | 4,106 |   |
|                                                                                                                              |   |                |     |   |   |   |   |   |
|  Supplemental disclosure of cash flow information:                                                                           |   |                |     |   |   |   |   |   |
|                                                                                                                              |   |                |     |   |   |   |   |   |
|  Non-cash financing and investing activities:                                                                                |   |                |     |   |   |   |   |   |
|   Landlord financed construction in progress                                                                            |   | $                   | 16,400   |   |   | $ | - |   |
|   Earn-out obligation                                                                                                   |   | $                   | 7,974    |   |   | $ | - |   |

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|                                                                    |   | Three months        |      |   | Nine months         |   |
|-------------------------------------------------------------------------|--------|---------------------|-----------|--------|---------------------|--------|
|                                                                    |   | ended September 30, |      |   | ended September 30, |   |
|                                                                    |   | 2010                |      |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                                                                    |   |                |      |   |                |   |   |   |   |   |   |   |
| Basic weighted average common shares outstanding    |   |                | 5,192,202 |   |                |   | 5,131,869 |   |   |   | 5,188,217 |   |   |   | 5,124,937 |   |
|                                                                    |   |                |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Effect of dilutive options                                              |   |                | -         |   |                |   | 14,585 |   |   |   | - |   |   |   | 13,763 |   |
|                                                                    |   |                |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Diluted weighted average common shares outstanding                 |   |                | 5,192,202 |   |                |   | 5,146,454 |   |   |   | 5,188,217 |   |   |   | 5,138,700 |   |

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|                                                                                                       |   | Three months        |    |   | Nine months         |   |
|------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|
|                                                                                                       |   | ended September 30, |    |   | ended September 30, |   |
|                                                                                                       |   | 2010                |    |   | 2009                |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                                                                                  |   |                |    |   |                |   |   |   |   |   |   |   |
|   Federal Group                                                                                  |   | $                   | 103,274 |   |                | $      | 142,332 |   |   | $ | 361,795 |   |   | $ | 446,591 |   |
|   International Group                                                                            |   |                | 64,686  |   |                |   | 88,675 |   |   |   | 186,873 |   |   |   | 226,098 |   |
|   IT, Energy and Management Consulting Group                                           |   |                | 25,831  |   |                |   | 19,377 |   |   |   | 67,459 |   |   |   | 54,702 |   |
|   Infrastructure Group                                                                           |   |                | 19,152  |   |                |   | 12,684 |   |   |   | 37,465 |   |   |   | 31,241 |   |
|     Total revenues                                                                     |   | $                   | 212,943 |   |                | $      | 263,068 |   |   | $ | 653,592 |   |   | $ | 758,632 |   |
|                                                                                                       |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Operating income:                                                                                          |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
|   Federal Group                                                                                  |   | $                   | 5,593   |   |                | $      | 6,046 |   |   | $ | 16,436 |   |   | $ | 16,966 |   |
|   International Group                                                                            |   |                | 3,688   |   |                |   | 4,074 |   |   |   | 7,571 |   |   |   | 7,667 |   |
|   IT, Energy and Management Consulting Group        |   |                | 3,534   |   |                |   | 2,507 |   |   |   | 7,968 |   |   |   | 5,912 |   |
|   Infrastructure Group                                                                           |   |                | (73     | )      |                |   | 294 |   |   |   | 396 |   |   |   | 635 |   |
|   Corporate/unallocated expenses                                                                 |   |                | (897    | )      |                |   | (419 | ) |   |   | (1,922 | ) |   |   | (745 | ) |
|    Operating income                                                                         |   | $                   | 11,845  |   |                | $      | 12,502 |   |   | $ | 30,449 |   |   | $ | 30,435 |   |

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|                                         |   | Three months        |    |   | Nine months         |   |
|----------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|
|                                         |   | ended September 30, |    |   | ended September 30, |   |
| Source of Revenues                           |   | 2010                |    |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                                         |   |                |    |   |                |   |   |   |   |   |   |   |
| Army/Army Reserve                            |   | $                   | 106,324 |   |                | $      | 129,487 |   |   | $ | 361,060 |   |   | $ | 418,430 |   |
| Navy                                         |   |                | 46,708  |   |                |   | 72,765 |   |   |   | 138,473 |   |   |   | 195,788 |   |
| Department of Treasury                       |   |                | 15,449  |   |                |   | 14,363 |   |   |   | 39,452 |   |   |   | 35,409 |   |
| Department of Transportation            |   |                | 18,310  |   |                |   | 11,383 |   |   |   | 34,843 |   |   |   | 26,611 |   |
| Other                                        |   |                | 26,152  |   |                |   | 35,070 |   |   |   | 79,764 |   |   |   | 82,394 |   |
|      Total revenues |   | $                   | 212,943 |   |                | $      | 263,068 |   |   | $ | 653,592 |   |   | $ | 758,632 |   |

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|                                 |   |       |   |
|--------------------------------------|--------|------------|--------|
| Description                          |   | Fair Value |   |
| Cash                                 |   | $          | 2,434  |   |
| Other current assets                 |   |       | 7,992  |   |
| Property and equipment               |   |       | 263    |   |
| Intangibles – customer related |   |       | 16,530 |   |
| Intangibles – trade name       |   |       | 1,570  |   |
| Other assets                         |   |       | 29     |   |
| Current liabilities                  |   |       | (3,288 | ) |
|                                 |   |       |   |   |
| Net identifiable assets acquired     |   |       | 25,530 |   |
| Goodwill                             |   |       | 14,719 |   |
|                                 |   |       |   |   |
| Total consideration                  |   | $          | 40,249 |   |
|                                 |   |       |   |   |
| Cash consideration                   |   | $          | 32,275 |   |
| Fair value of earn-out obligation    |   |       | 7,974  |   |
| Total consideration                  |   | $          | 40,249 |   |

|                                    |   | IT, Energy andManagementConsulting |        |   |  Infrastructure |   |    |  Total |   |
|-----------------------------------------|--------|------------------------------------|-------------|--------|----------------------|--------|---------|-------------|--------|
|                                    |   |                               |        |   |                 |   |    |        |   |
|  Balance as of December 31, 2009   |   | $                                  | 13,287      |   |                 | $      | 6,243   |        |   | $ | 19,530 |   |
|  Goodwill recorded during the year |   |                               | 14,719      |   |                 |   | -       |        |   |   | 14,719 |   |
|  Contingent consideration earned   |   |                               |  1,400 |   |                 |   |  - |        |   |   | 1,400 |   |
|  Balance as of September 30, 2010  |   | $                                  | 29,406      |   |                 | $      | 6,243   |        |   | $ | 35,649 |   |

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| Description of Financial Instrument                     | Financial Statement Classification | Fair Value Hierarchy |   | Fair Value |   |
|---------------------------------------------------------|------------------------------------|----------------------|--------|------------|--------|
| Non-COLI assets held in DSC Plan                        | Long-term asset                    | Level 1              |   | $          | 1,558  |   |
|                                                    |                               |                 |   |       |   |   |
| Deferred compensation liability related to the DSC Plan | Long-term liability                | Level 2              |   | $          | 5,734  |   |
|                                                    |                               |                 |   |       |   |   |
| Earn-out obligation                                     | Long-term liability                | Level 3              |   | $          | 7,974  |   |

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ITEM 2.

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| Concentration of Revenues (in thousands)For the Nine months ended September 30, |   |
|---------------------------------------------------------------------------------|--------|
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Source of Revenue                                                               |   | 2010 |   |   | % |   |   | 2009 |   |   | % |   |
| CED Assured Mobility Systems                                                    |   | $ | 129,105 |   |   |   | 20 |   |   | $ | 102,844 |   |   |   | 14 |   |
| GLOBAL FMS                                                                      |   |   | 95,432 |   |   |   | 14 |   |   |   | 72,043 |   |   |   | 9 |   |
| RCV Modernization                                                               |   |   | 50,030 |   |   |   | 8 |   |   |   | 62,751 |   |   |   | 8 |   |
| ELD US Army Reserve                                                             |   |   | 45,394 |   |   |   | 7 |   |   |   | 54,647 |   |   |   | 7 |   |
| Treasury Seized Asset Program                                                   |   |   | 37,790 |   |   |   | 6 |   |   |   | 34,988 |   |   |   | 5 |   |
| PIEP Contract                                                                   |   |   | 34,869 |   |   |   | 5 |   |   |   | 26,607 |   |   |   | 4 |   |
| Other                                                                           |   |   | 260,972 |   |   |   | 40 |   |   |   | 404,752 |   |   |   | 53 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total Revenues                                                      |   | $ | 653,592 |   |   |   | 100 |   |   | $ | 758,632 |   |   |   | 100 |   |

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|                          |   | (in millions) |   |
|-------------------------------|--------|---------------|--------|
|                          |   | 2010          |   |   | 2009 |   |
|  Bookings                |   | $             | 673    |   |   | $ | 789 |   |
|  Revenues                |   | $             | 654    |   |   | $ | 759 |   |
|  Funded Contract Backlog |   | $             | 493    |   |   | $ | 597 |   |

|               |   | Nine monthsended September 30, |    |
|--------------------|--------|--------------------------------|---------|
| Contract Type      |   | 2010                           |    |   | % |   |   | 2009 |   |   | % |   |
| Cost-type          |   | $                              | 182,754 |   |   |   | 28 |   |   | $ | 151,598 |   |   |   | 20 |   |
| Time and materials |   |                           | 430,067 |   |   |   | 66 |   |   |   | 576,333 |   |   |   | 76 |   |
| Fixed-price        |   |                           | 40,771  |   |   |   | 6 |   |   |   | 30,701 |   |   |   | 4 |   |
|               |   | $                              | 653,592 |   |   |   | 100 |   |   | $ | 758,632 |   |   |   | 100 |   |

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|                                                   |   | Three months        |    |   | Nine months         |   |    | Change |   |
|--------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|--------|--------|
|                                                   |   | ended September 30, |    |   | ended September 30, |   |    | Three  |   |   | Nine |   |
|                                                   |   | 2010                |    |   | 2009                |   |    | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
| Revenues                                               |   | $                   | 212,943 |   |                | $      | 263,068 |   |   | $ | 653,592 |   |   | $ | 758,632 |   |   | $ | (50,125 | ) |   | $ | (105,040 | ) |
| Contract costs                                         |   |                | 200,248 |   |                |   | 250,144 |   |   |   | 621,538 |   |   |   | 727,393 |   |   |   | (49,896 | ) |   |   | (105,855 | ) |
| Selling, general and administrative expenses |   |                | 850     |   |                |   | 422     |   |   |   | 1,605 |   |   |   | 804 |   |   |   | 428 |   |   |   | 801 |   |
| Operating income                                       |   |                | 11,845  |   |                |   | 12,502  |   |   |   | 30,449 |   |   |   | 30,435 |   |   |   | (657 | ) |   |   | 14 |   |
| Interest expense (income), net                    |   |                | 61      |   |                |   | 3       |   |   |   | 75 |   |   |   | (116 | ) |   |   | 58 |   |   |   | 191 |   |
| Income before income taxes                        |   |                | 11,784  |   |                |   | 12,499  |   |   |   | 30,374 |   |   |   | 30,551 |   |   |   | (715 | ) |   |   | (177 | ) |
| Provision for income taxes                        |   |                | 4,566   |   |                |   | 4,773   |   |   |   | 11,655 |   |   |   | 11,743 |   |   |   | (207 | ) |   |   | (88 | ) |
| Net income                                             |   | $                   | 7,218   |   |                | $      | 7,726   |   |   | $ | 18,719 |   |   | $ | 18,808 |   |   | $ | (508 | ) |   | $ | (89 | ) |

|              |   | Three months        |    |   | Nine months         |   |    | Change |   |
|-------------------|--------|---------------------|---------|--------|---------------------|--------|---------|--------|--------|
|              |   | ended September 30, |    |   | ended September 30, |   |    | Three  |   |   | Nine |   |
|              |   | 2010                |    |   | 2009                |   |    | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
|              |   |                |    |   |                |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues          |   | $                   | 103,274 |   |                | $      | 142,332 |   |   | $ | 361,795 |   |   | $ | 446,591 |   |   | $ | (39,058 | ) |   | $ | (84,796 | ) |
|              |   |                |    |   |                |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income  |   | $                   | 5,593   |   |                | $      | 6,046   |   |   | $ | 16,436 |   |   | $ | 16,966 |   |   | $ | (453 | ) |   | $ | (530 | ) |
| Profit percentage |   |                | 5.4     | %      |                |   | 4.2     | %      |   |   | 4.5 | % |   |   | 3.8 | % |   |   |   |   |   |   |   |   |

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|              |   | Three months        |   |   | Nine months         |   |   | Change |   |
|-------------------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
|              |   | ended September 30, |   |   | ended September 30, |   |   | Three  |   |   | Nine |   |
|              |   | 2010                |   |   | 2009                |   |   | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
|              |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues          |   | $                   | 64,686 |   |                | $      | 88,675 |   |   | $ | 186,873 |   |   | $ | 226,098 |   |   | $ | (23,989 | ) |   | $ | (39,225 | ) |
|              |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income  |   | $                   | 3,688  |   |                | $      | 4,074  |   |   | $ | 7,571 |   |   | $ | 7,667 |   |   | $ | (386 | ) |   | $ | (96 | ) |
| Profit percentage |   |                | 5.7    | %      |                |   | 4.6    | %      |   |   | 4.1 | % |   |   | 3.4 | % |   |   |   |   |   |   |   |   |

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|              |   | Three months        |   |   | Nine months         |   |   | Change |   |
|-------------------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
|              |   | ended September 30, |   |   | ended September 30, |   |   | Three  |   |   | Nine |   |
|              |   | 2010                |   |   | 2009                |   |   | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
|              |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues          |   | $                   | 25,831 |   |                | $      | 19,377 |   |   | $ | 67,459 |   |   | $ | 54,702 |   |   | $ | 6,454 |   |   | $ | 12,757 |   |
|              |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income  |   | $                   | 3,534  |   |                | $      | 2,507  |   |   | $ | 7,968 |   |   | $ | 5,912 |   |   | $ | 1,027 |   |   | $ | 2,056 |   |
| Profit percentage |   |                | 13.7   | %      |                |   | 12.9   | %      |   |   | 11.8 | % |   |   | 10.8 | % |   |   |   |   |   |   |   |   |

|                    |   | Three months        |   |   | Nine months         |   |   | Change |   |
|-------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
|                    |   | ended September 30, |   |   | ended September 30, |   |   | Three  |   |   | Nine |   |
|                    |   | 2010                |   |   | 2009                |   |   | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
|                    |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                |   | $                   | 19,152 |   |                | $      | 12,684 |   |   | $ | 37,465 |   |   | $ | 31,241 |   |   | $ | 6,468 |   |   | $ | 6,224 |   |
|                    |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating (loss) income |   | $                   | (73    | )      |                | $      | 294    |   |   | $ | 396 |   |   | $ | 635 |   |   | $ | (367 | ) |   | $ | (239 | ) |
| Profit percentage       |   |                | (0.4   | )%     |                |   | 2.3    | %      |   |   | 1.1 | % |   |   | 2.0 | % |   |   |   |   |   |   |   |   |

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|           | Maximum Ratio | Actual Ratio |
|----------------|---------------|--------------|
| Leverage Ratio | 3.00 to 1     | 0.53 to 1    |

|                        | Minimum Ratio | Actual Ratio |
|-----------------------------|---------------|--------------|
| Fixed Charge Coverage Ratio | 1.25 to 1     | 3.14 to 1    |
|                        |          |         |
|                        | Minimum Ratio | Actual Ratio |
| Asset Coverage Ratio        | 1.5 to 1      | 5.61 to 1    |

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Item 3.    Quantitative 

See 

Controls

PART II. 

Item 2.    Unregistered 

Exhibits 

31.1   Section 302 CEO Certification

31.2   Section 302 CFO and PAO Certification

32.1   Section 906 CEO Certification

32.2   Section 906 CFO and PAO Certification

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|                                                                                                                              |   | VSE CORPORATION                    |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                                                              |   |                               |   |
|                                                                                                                              |   |                               |   |
| Date: October 29, 2010                  | By:    | /s/ M. A. Gauthier                 |   |
|                                                                                                                              |   | M. A. Gauthier                     |   |
|                                                                                                                              |   | Director, Chief Executive Officer, |   |
|                                                                                                                              |   | President and Chief Operating      |   |
|                                                                                                                              |   | Officer                            |   |

| Date: October 29, 2010                  | By:    | /s/ T. R. Loftus               |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                              |   | T. R. Loftus                   |   |
|                                                                                                                              |   | Executive Vice President and   |   |
|                                                                                                                              |   | Chief Financial Officer        |   |
|                                                                                                                              |   | (Principal Accounting Officer) |   |

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