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 ofContents

| TABLE OF CONTENTS                  |
|------------------------------------|
|                               |   |   |
|                               |   |   |
|                               |   | Page |
| PART I.      Financial Information |   |   |
|                               |   |   |
| ITEM      1.                       | Financial      Statements (unaudited) |   |
|                               |   |   |
|                               | Consolidated Balance Sheets as of  June 30,      2010 and December 31, 2009 | 4 |
|                               |   |   |
|                               | Consolidated Statements of Income for the three-      and six- months ended June 30, 2010 and      2009 | 5 |
|                               |   |   |
|                               | Consolidated Statements of Cash Flows for      the six months ended June 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 | 13 |
|                               |   |   |
| ITEM      3.                       | Quantitative and Qualitative Disclosures About      Market Risks | 23 |
|                               |   |   |
| ITEM      4.                       | Controls and Procedures | 23 |
|                               |   |   |
|                               |   |   |
| PART II.      Other Information    |   |   |
|                               |   |   |
| ITEM      2.                       | Unregistered Sales of Equity Securities and Use of      Proceeds | 23 |
|                               |   |   |
| ITEM      6.                       | Exhibits, Financial Statements and      Schedules | 23 |
|                               |   |   |
|                               | Signatures | 24 |
|                               |   |   |

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PART I.

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

|                                                                                                                                                                    |   |          |    |   |              |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                                                                                                                                                    |   | June      30, |    |   | December      31, |   |
|                                                                                                                                                                    |   | 2010          |    |   | 2009              |   |
| Assets                                                                                                                                                                  |   |          |    |   |              |   |
| Current      assets:                                                                                                                                                    |   |          |    |   |              |   |
| Cash      and cash equivalents                                                                                                                                          |   | $             | 7,097   |   |              | $      | 8,024 |   |
| Receivables,      principally U.S. Government, net                                                                                                                      |   |          | 138,533 |   |              |   | 175,185 |   |
| Deferred      tax assets                                                                                                                                                |   |          | 1,421   |   |              |   | 2,036 |   |
| Other      current assets                                                                                                                                               |   |          | 7,426   |   |              |   | 7,979 |   |
|     Total      current assets                                                                                                                       |   |          | 154,477 |   |              |   | 193,224 |   |
|                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| Property      and equipment, net                                                                                                                                        |   |          | 23,947  |   |              |   | 24,683 |   |
| Intangible      assets                                                                                                                                                  |   |          | 8,417   |   |              |   | 9,336 |   |
| Goodwill                                                                                                                                                                |   |          | 20,930  |   |              |   | 19,530 |   |
| Other      assets                                                                                                                                                       |   |          | 6,975   |   |              |   | 7,217 |   |
| Deferred      tax assets                                                                                                                                                |   |          | 342     |   |              |   | - |   |
|     Total      assets                                                                                                                               |   | $             | 215,088 |   |              | $      | 253,990 |   |
|                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| Liabilities      and Stockholders’ Equity                                                                                                                         |   |          |    |   |              |   |   |   |
| Current      liabilities:                                                                                                                                               |   |          |    |   |              |   |   |   |
| Accounts      payable                                                                                                                                                   |   | $             | 69,056  |   |              | $      | 112,995 |   |
| Accrued      expenses                                                                                                                                                   |   |          | 28,991  |   |              |   | 34,069 |   |
| Dividends      payable                                                                                                                                                  |   |          | 312     |   |              |   | 258 |   |
|     Total      current liabilities                                                                                                                  |   |          | 98,359  |   |              |   | 147,322 |   |
|                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| Deferred      compensation                                                                                                                                              |   |          | 3,558   |   |              |   | 3,934 |   |
| Deferred      income taxes                                                                                                                                              |   |          | -       |   |              |   | 324 |   |
| Other      liabilities                                                                                                                                                  |   |          | 1,088   |   |              |   | 1,100 |   |
|     Total      liabilities                                                                                                                          |   |          | 103,005 |   |              |   | 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                                                                                                                                         |   |          | 15,562  |   |              |   | 15,720 |   |
| Retained      earnings                                                                                                                                                  |   |          | 96,261  |   |              |   | 85,332 |   |
|     Total      stockholders’ equity                                                                                                           |   |          | 112,083 |   |              |   | 101,310 |   |
|     Total      liabilities and stockholders’ equity                                                                                           |   | $             | 215,088 |   |              | $      | 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 six months |   |
|---------------------------------------------------|--------|---------------------------|-----------|--------|-------------------------|--------|
|                                              |   | ended      June 30,       |      |   | ended      June 30,     |   |
|                                              |   | 2010                      |      |   | 2009                    |   |   | 2010 |   |   | 2009 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |
| Revenues                                          |   | $                         | 212,473   |   |                    | $      | 255,109 |   |   | $ | 440,649 |   |   | $ | 495,564 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Contract      costs                               |   |                      | 202,063   |   |                    |   | 244,440 |   |   |   | 421,290 |   |   |   | 477,249 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative expenses |   |                      | 457       |   |                    |   | 180 |   |   |   | 755 |   |   |   | 382 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                             |   |                      | 9,953     |   |                    |   | 10,489 |   |   |   | 18,604 |   |   |   | 17,933 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense (income), net               |   |                      | 19        |   |                    |   | (60 | ) |   |   | 14 |   |   |   | (119 | ) |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income taxes                   |   |                      | 9,934     |   |                    |   | 10,549 |   |   |   | 18,590 |   |   |   | 18,052 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for income taxes                   |   |                      | 3,831     |   |                    |   | 4,107 |   |   |   | 7,089 |   |   |   | 6,970 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                   |   | $                         | 6,103     |   |                    | $      | 6,442 |   |   | $ | 11,501 |   |   | $ | 11,082 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share                     |   | $                         | 1.18      |   |                    | $      | 1.26 |   |   | $ | 2.22 |   |   | $ | 2.16 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Basic      weighted average shares outstanding    |   |                      | 5,191,909 |   |                    |   | 5,130,372 |   |   |   | 5,186,191 |   |   |   | 5,121,414 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share                   |   | $                         | 1.18      |   |                    | $      | 1.25 |   |   | $ | 2.22 |   |   | $ | 2.16 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      weighted average shares outstanding  |   |                      | 5,191,909 |   |                    |   | 5,142,799 |   |   |   | 5,186,191 |   |   |   | 5,134,759 |   |
|                                              |   |                      |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      declared per share                 |   | $                         | 0.060     |   |                    | $      | 0.050 |   |   | $ | 0.110 |   |   | $ | 0.095 |   |

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

|                                                                                                                                        |   | For      the six months |     |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------|
|                                                                                                                                        |   | ended      June 30,     |     |
|                                                                                                                                        |   | 2010                    |     |   | 2009 |   |
| Cash      flows from operating activities:                                                                                                  |   |                    |     |   |   |   |
|   Net      income                                                                                                                 |   | $                       | 11,501   |   |   | $ | 11,082 |   |
|   Adjustments      to reconcile net income to net cash provided by operating      activities:                                     |   |                    |     |   |   |   |   |   |
|       Depreciation      and amortization                                                  |   |                    | 4,267    |   |   |   | 3,518 |   |
|       Loss      (gain) on sale of property and      equipment         |   |                    | 10       |   |   |   | (130 | ) |
|       Deferred      taxes                                                       |   |                    | (51      | ) |   |   | (413 | ) |
|       Stock-based      compensation                                                                           |   |                    | 392      |   |   |   | 625 |   |
|       Excess      tax benefits on stock-based compensation                                                    |   |                    | -        |   |   |   | (13 | ) |
| Changes      in operating assets and liabilities:                                                                                           |   |                    |     |   |   |   |   |   |
|       Receivables,      net                                                                         |   |                    | 36,652   |   |   |   | 59,545 |   |
|       Other      current assets and noncurrent assets                                               |   |                    | 738      |   |   |   | 1,381 |   |
|       Accounts      payable and deferred compensation                                                         |   |                    | (44,315  | ) |   |   | (61,567 | ) |
|       Accrued      expenses                                                                         |   |                    | (5,181   | ) |   |   | (3,763 | ) |
|       Other      liabilities                                                                                  |   |                    | (12      | ) |   |   | 79 |   |
|                                                                                                                                        |   |                    |     |   |   |   |   |   |
|        Net      cash provided by operating activities                                                    |   |                    | 4,001    |   |   |   | 10,344 |   |
|                                                                                                                                        |   |                    |     |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                  |   |                    |     |   |   |   |   |   |
|   Purchases      of property and equipment                                                                                        |   |                    | (2,565   | ) |   |   | (4,891 | ) |
|   Proceeds      from the sale of property and equipment                                                                           |   |                    | -        |   |   |   | 150 |   |
|   Contingent      consideration payments                                                                                          |   |                    | (1,845   | ) |   |   | (1,612 | ) |
|                                                                                                                                        |   |                    |     |   |   |   |   |   |
|        Net      cash used in investing activities                                                        |   |                    | (4,410   | ) |   |   | (6,353 | ) |
|                                                                                                                                        |   |                    |     |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                  |   |                    |     |   |   |   |   |   |
|    Borrowings      on loan arrangement                                                                                       |   |                    | 120,366  |   |   |   | 112,860 |   |
|    Repayments      on loan arrangement                                                                                       |   |                    | (120,366 | ) |   |   | (116,890 | ) |
|    Dividends      paid                                                                                                       |   |                    | (518     | ) |   |   | (460 | ) |
|    Excess      tax benefits on stock-based compensation                                                                      |   |                    | -        |   |   |   | 13 |   |
|    Proceeds      from the exercise of stock options                                                                          |   |                    | -        |   |   |   | 31 |   |
|                                                                                                                                        |   |                    |     |   |   |   |   |   |
|        Net      cash used in financing activities                                                        |   |                    | (518     | ) |   |   | (4,446 | ) |
|                                                                                                                                        |   |                    |     |   |   |   |   |   |
|                                                                                                                                        |   |                    |     |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                                                    |   |                    | (927     | ) |   |   | (455 | ) |
|   Cash      and cash equivalents at beginning of period                                                                 |   |                    | 8,024    |   |   |   | 638 |   |
|   Cash      and cash equivalents at end of period                                                                                 |   | $                       | 7,097    |   |   | $ | 183 |   |

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1) Nature of Business and Basis of Presentation

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|                                                              |   | Three      months   |      |   | Six      months     |   |
|-------------------------------------------------------------------|--------|---------------------|-----------|--------|---------------------|--------|
|                                                              |   | ended      June 30, |      |   | ended      June 30, |   |
|                                                              |   | 2010                |      |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                                                              |   |                |      |   |                |   |   |   |   |   |   |   |
| Basic      weighted average common      shares outstanding   |   |                | 5,191,909 |   |                |   | 5,130,372 |   |   |   | 5,186,191 |   |   |   | 5,121,414 |   |
|                                                              |   |                |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of dilutive options                                   |   |                | -         |   |                |   | 12,427 |   |   |   | - |   |   |   | 13,345 |   |
|                                                              |   |                |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      weighted average common      shares outstanding |   |                | 5,191,909 |   |                |   | 5,142,799 |   |   |   | 5,186,191 |   |   |   | 5,134,759 |   |

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|                                                                                                                 |   | Three      months   |    |   | Six      months     |   |
|----------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|
|                                                                                                                 |   | ended      June 30, |    |   | ended      June 30, |   |
|                                                                                                                 |   | 2010                |    |   | 2009                |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                                                                                            |   |                |    |   |                |   |   |   |   |   |   |   |
|   Federal      Group                                                                                       |   | $                   | 128,755 |   |                | $      | 151,302 |   |   | $ | 258,521 |   |   | $ | 304,259 |   |
|   International      Group                                                                                 |   |                | 52,939  |   |                |   | 73,267 |   |   |   | 122,187 |   |   |   | 137,423 |   |
|   IT,      Energy and Management      Consulting Group                                           |   |                | 21,336  |   |                |   | 18,620 |   |   |   | 41,628 |   |   |   | 35,325 |   |
|   Infrastructure      Group                                                                                |   |                | 9,443   |   |                |   | 11,920 |   |   |   | 18,313 |   |   |   | 18,557 |   |
|     Total      revenues                                                                          |   | $                   | 212,473 |   |                | $      | 255,109 |   |   | $ | 440,649 |   |   | $ | 495,564 |   |
|                                                                                                                 |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income:                                                                                               |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
|   Federal      Group                                                                                       |   | $                   | 6,059   |   |                | $      | 6,422 |   |   | $ | 10,843 |   |   | $ | 10,920 |   |
|   International      Group                                                                                 |   |                | 1,841   |   |                |   | 1,755 |   |   |   | 3,883 |   |   |   | 3,593 |   |
|   IT, Energy      and Management      Consulting Group        |   |                | 2,450   |   |                |   | 2,230 |   |   |   | 4,434 |   |   |   | 3,405 |   |
|   Infrastructure      Group                                                                                |   |                | 188     |   |                |   | 302 |   |   |   | 469 |   |   |   | 341 |   |
|   Corporate/unallocated      expenses                                                                      |   |                | (585    | )      |                |   | (220 | ) |   |   | (1,025 | ) |   |   | (326 | ) |
|    Operating      income                                                                              |   | $                   | 9,953   |   |                | $      | 10,489 |   |   | $ | 18,604 |   |   | $ | 17,933 |   |

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|                                              |   | Three      months   |    |   | Six      months     |   |
|---------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|
|                                              |   | ended      June 30, |    |   | ended      June 30, |   |
|                                              |   | 2010                |    |   | 2009                |   |   | 2010 |   |   | 2009 |   |
| Source of Revenues                                |   |                |    |   |                |   |   |   |   |   |   |   |
|                                              |   |                |    |   |                |   |   |   |   |   |   |   |
| Army/Army      Reserve                            |   | $                   | 127,325 |   |                | $      | 144,459 |   |   | $ | 254,736 |   |   | $ | 288,943 |   |
| Navy                                              |   |                | 37,989  |   |                |   | 63,799 |   |   |   | 91,765 |   |   |   | 123,023 |   |
| Department      of Treasury                       |   |                | 12,099  |   |                |   | 11,506 |   |   |   | 24,003 |   |   |   | 21,046 |   |
| Department      of Transportation            |   |                | 8,553   |   |                |   | 10,275 |   |   |   | 16,533 |   |   |   | 15,228 |   |
| Other                                             |   |                | 26,507  |   |                |   | 25,070 |   |   |   | 53,612 |   |   |   | 47,324 |   |
|      Total      revenues |   | $                   | 212,473 |   |                | $      | 255,109 |   |   | $ | 440,649 |   |   | $ | 495,564 |   |

|                                       |   | IT,      Energy andManagementConsulting |        |   |  Infrastructure |   |    |  Total |   |
|--------------------------------------------|--------|-----------------------------------------|-------------|--------|----------------------|--------|---------|-------------|--------|
|                                       |   |                                    |        |   |                 |   |    |        |   |
|  Balance      as of December 31, 2009 |   | $                                       | 13,287      |   |                 | $      | 6,243   |        |   | $ | 19,530 |   |
|  Contingent      consideration earned |   |                                    |  1,400 |   |                 |   |  - |        |   |   | 1,400 |   |
|  Balance      as of June 30, 2010     |   | $                                       | 14,687      |   |                 | $      | 6,243   |        |   | $ | 20,930 |   |

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ITEM2.    Management’s Discussion and Analysis of FinancialCondition andResults of Operations 

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| Concentration      of Revenues (in      thousands)For the six months ended June      30, |   |
|------------------------------------------------------------------------------------------|--------|
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Source of Revenue                                                                        |   | 2010 |   |   | % |   |   | 2009 |   |   | % |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CED      Army Equipment Support                                                          |   | $ | 49 |   |   |   | - |   |   | $ | 52,229 |   |   |   | 11 |   |
| CED      Assured Mobility Systems                                                        |   |   | 92,759 |   |   |   | 21 |   |   |   | 65,783 |   |   |   | 13 |   |
| RCV      Modernization                                                                   |   |   | 36,784 |   |   |   | 8 |   |   |   | 37,256 |   |   |   | 8 |   |
| CED      Other                                                                           |   |   | 57,937 |   |   |   | 13 |   |   |   | 91,290 |   |   |   | 18 |   |
|   Total      CED                                                               |   |   | 187,529 |   |   |   | 42 |   |   |   | 246,558 |   |   |   | 50 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GLOBAL      FMS                                                                          |   |   | 57,915 |   |   |   | 13 |   |   |   | 45,632 |   |   |   | 9 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury      Seized Asset Program                                                       |   |   | 22,859 |   |   |   | 5 |   |   |   | 20,655 |   |   |   | 4 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PIEP      Contract                                                                       |   |   | 16,533 |   |   |   | 4 |   |   |   | 15,224 |   |   |   | 3 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                                                                                    |   |   | 155,813 |   |   |   | 36 |   |   |   | 167,495 |   |   |   | 34 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total      Revenues                                                          |   | $ | 440,649 |   |   |   | 100 |   |   | $ | 495,564 |   |   |   | 100 |   |

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|                               | (in      millions) |
|------------------------------------|--------------------|
|                               | 2010               |   | 2009 |
|  Bookings                     | $458               |   | $464 |
|  Revenues                     | $441               |   | $496 |
|  Funded      Contract Backlog | $491               |   | $536 |
|                               |               |   |   |

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|                    |   | Six      monthsended      June 30, |    |
|-------------------------|--------|------------------------------------|---------|
| Contract Type           |   | 2010                               |    |   | % |   |   | 2009 |   |   | % |   |
|                    |   |                               |    |   |   |   |   |   |   |   |   |   |
| Cost-type               |   | $                                  | 109,203 |   |   |   | 25 |   |   | $ | 94,833 |   |   |   | 19 |   |
| Time      and materials |   |                               | 305,326 |   |   |   | 69 |   |   |   | 382,265 |   |   |   | 77 |   |
| Fixed-price             |   |                               | 26,120  |   |   |   | 6 |   |   |   | 18,466 |   |   |   | 4 |   |
|                    |   | $                                  | 440,649 |   |   |   | 100 |   |   | $ | 495,564 |   |   |   | 100 |   |

|                                                             |   | Three      months   |    |   | Six      months     |   |    | Change |   |
|------------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|--------|--------|
|                                                             |   | ended      June 30, |    |   | ended      June 30, |   |    | Three  |   |   | Six |   |
|                                                             |   | 2010                |    |   | 2009                |   |    | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
|                                                             |   |                |    |   |                |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                         |   | $                   | 212,473 |   |                | $      | 255,109 |   |   | $ | 440,649 |   |   | $ | 495,564 |   |   | $ | (42,636 | ) |   | $ | (54,915 | ) |
| Contract      costs                                              |   |                | 202,063 |   |                |   | 244,440 |   |   |   | 421,290 |   |   |   | 477,249 |   |   |   | (42,377 | ) |   |   | (55,959 | ) |
| Selling,      general and      administrative expenses |   |                | 457     |   |                |   | 180     |   |   |   | 755 |   |   |   | 382 |   |   |   | 277 |   |   |   | 373 |   |
| Operating      Income                                            |   |                | 9,953   |   |                |   | 10,489  |   |   |   | 18,604 |   |   |   | 17,933 |   |   |   | (536 | ) |   |   | 671 |   |
| Interest      expense (income),      net                    |   |                | 19      |   |                |   | (60     | )      |   |   | 14 |   |   |   | (119 | ) |   |   | 79 |   |   |   | 133 |   |
| Income      before income      taxes                        |   |                | 9,934   |   |                |   | 10,549  |   |   |   | 18,590 |   |   |   | 18,052 |   |   |   | (615 | ) |   |   | 538 |   |
| Provision      for income      taxes                        |   |                | 3,831   |   |                |   | 4,107   |   |   |   | 7,089 |   |   |   | 6,970 |   |   |   | (276 | ) |   |   | 119 |   |
| Net      Income                                                  |   | $                   | 6,103   |   |                | $      | 6,442   |   |   | $ | 11,501 |   |   | $ | 11,082 |   |   | $ | (339 | ) |   | $ | 419 |   |
| Net      profit margin                                           |   |                | 2.9     | %      |                |   | 2.5     | %      |   |   | 2.6 | % |   |   | 2.2 | % |   |   |   |   |   |   |   |   |

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|                   |   | Three      months   |    |   | Six      months     |   |    | Change |   |
|------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|--------|--------|
|                   |   | ended      June 30, |    |   | ended      June 30, |   |    | Three  |   |   | Six |   |
|                   |   | 2010                |    |   | 2009                |   |    | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
|                   |   |                |    |   |                |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues               |   | $                   | 128,755 |   |                | $      | 151,302 |   |   | $ | 258,521 |   |   | $ | 304,259 |   |   | $ | (22,547 | ) |   | $ | (45,738 | ) |
|                   |   |                |    |   |                |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income  |   | $                   | 6,059   |   |                | $      | 6,422   |   |   | $ | 10,843 |   |   | $ | 10,920 |   |   | $ | (363 | ) |   | $ | (77 | ) |
| Profit      percentage |   |                | 4.7     | %      |                |   | 4.2     | %      |   |   | 4.2 | % |   |   | 3.6 | % |   |   |   |   |   |   |   |   |

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Table of Contents
|                   |   | Three      months   |   |   | Six      months     |   |   | Change |   |
|------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
|                   |   | ended      June 30, |   |   | ended      June 30, |   |   | Three  |   |   | Six |   |
|                   |   | 2010                |   |   | 2009                |   |   | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
|                   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues               |   | $                   | 52,939 |   |                | $      | 73,267 |   |   | $ | 122,187 |   |   | $ | 137,423 |   |   | $ | (20,328 | ) |   | $ | (15,236 | ) |
|                   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income  |   | $                   | 1,841  |   |                | $      | 1,755  |   |   | $ | 3,883 |   |   | $ | 3,593 |   |   | $ | 86 |   |   | $ | 290 |   |
| Profit      percentage |   |                | 3.5    | %      |                |   | 2.4    | %      |   |   | 3.2 | % |   |   | 2.6 | % |   |   |   |   |   |   |   |   |

|                   |   | Three      months   |   |   | Six      months     |   |   | Change |   |
|------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
|                   |   | ended      June 30, |   |   | ended      June 30, |   |   | Three  |   |   | Six |   |
|                   |   | 2010                |   |   | 2009                |   |   | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
|                   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues               |   | $                   | 21,336 |   |                | $      | 18,620 |   |   | $ | 41,628 |   |   | $ | 35,325 |   |   | $ | 2,716 |   |   | $ | 6,303 |   |
|                   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income  |   | $                   | 2,450  |   |                | $      | 2,230  |   |   | $ | 4,434 |   |   | $ | 3,405 |   |   | $ | 220 |   |   | $ | 1,029 |   |
| Profit      percentage |   |                | 11.5   | %      |                |   | 12.0   | %      |   |   | 10.7 | % |   |   | 9.6 | % |   |   |   |   |   |   |   |   |

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Table ofContents
|                   |   | Three      months   |   |   | Six      months     |   |   | Change |   |
|------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
|                   |   | ended      June 30, |   |   | ended      June 30, |   |   | Three  |   |   | Six |   |
|                   |   | 2010                |   |   | 2009                |   |   | 2010   |   |   | 2009 |   |   | Months |   |   | Months |   |
|                   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues               |   | $                   | 9,443  |   |                | $      | 11,920 |   |   | $ | 18,313 |   |   | $ | 18,557 |   |   | $ | (2,477 | ) |   | $ | (244 | ) |
|                   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income  |   | $                   | 188    |   |                | $      | 302    |   |   | $ | 469 |   |   | $ | 341 |   |   | $ | (114 | ) |   | $ | 128 |   |
| Profit      percentage |   |                | 2.0    | %      |                |   | 2.5    | %      |   |   | 2.6 | % |   |   | 1.8 | % |   |   |   |   |   |   |   |   |

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|                | Maximum Ratio  | Actual Ratio   |
|---------------------|----------------|----------------|
| Leverage      Ratio | 3.00      to 1 | 0.10      to 1 |

|                             | Minimum Ratio  | Actual Ratio   |
|----------------------------------|----------------|----------------|
| Fixed      Charge Coverage Ratio | 1.25      to 1 | 3.35      to 1 |

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Table ofContents
Item 3.    Quantitative 

Item 4.    Controls 

PART II.  

Item 2.    Unregistered 

Item 6.    Exhibits 

31.1   Section 302 CEOCertification

31.2   Section 302 CFO and PAOCertification  

32.1   Section 906 CEOCertification

 32.2   Section 906 CFO and PAOCertification  

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|                                                                                                                                |   | VSE      CORPORATION                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                                                                                |   |                                    |   |
|                                                                                                                                |   |                                    |   |
| Date:      July 30,      2010                  | By:    | /s/      M. A. Gauthier                 |   |
|                                                                                                                                |   | M.      A. Gauthier                     |   |
|                                                                                                                                |   | Director,      Chief Executive Officer, |   |
|                                                                                                                                |   | President      and Chief Operating      |   |
|                                                                                                                                |   | Officer                                 |   |

| Date: July      30,      2010                  | By:    | /s/      T. R. Loftus               |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                                                                     |   | T.      R. Loftus                   |   |
|                                                                                                                                     |   | Executive      Vice President and   |   |
|                                                                                                                                     |   | Chief      Financial Officer        |   |
|                                                                                                                                     |   | (Principal      Accounting Officer) |   |

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