DRCO Dynamics Research Corp. (MM)

-- Expands Air Force Business Through Successful CAPS Contract Competition -- ANDOVER, Mass., Jan. 18 /PRNewswire-FirstCall/ -- Dynamics Research Corporation (NASDAQ:DRCO) today reported highly successful results to-date in task re-competitions under the U.S. Air Force 5-year $850 million Consolidated Acquisition of Professional Services (CAPS) contract for work in support of the Aeronautical Systems Center at Wright Patterson Air Force Base in Dayton, Ohio. The company's HJ Ford subsidiary has participated in the competitions as a subcontractor to the HMRTECH/HJ Ford Joint Venture. With the re-competitions under the new CAPS contract estimated at 60 percent complete, annual revenue from the awards to-date is anticipated to reach $24 million, growing by more than 10 percent over the last year of the preceding task order periods. Programs supported include the C-17, F/A-22, F- 16, B-1, B-2 Systems Groups, as well as the Reconnaissance Sensors, Propulsion and Tanker Systems Modernization Programs. The periods of performance for the task awards range from one to five years. Also, related to the new CAPS contract structure, work performed by other contractors on these programs, which under the predecessor contract was passed-through the company's revenue and cost of sales, will no longer be included in the company's financial results. The total annual effect of eliminating the revenue and cost of sales pass-through, estimated at $28 million, is not included in the $24 million of revenues anticipated by the company. These tasks have been awarded under the HMRTECH/HJ Ford Joint Venture CAPS contract. The task orders include a mix of time and material and firm fixed price awards and provide the company with the opportunity to continue to expand its presence with the Wings, Groups and Squadrons at Aeronautical System Center and other key Air Force organizations at Wright-Patterson AFB, Ohio. CAPS is the primary contract vehicle for delivering multi-functional support including Consulting, Program Management, Logistics, Engineering, Financial Management, and Business Transformation services to a variety of ASC, Air Force Materiel Command, and Air Force Research Laboratory customers; in addition to other Wright Patterson Air Force Base organizations. "DRC, through its subsidiary company, HJ Ford, is delighted to continue its long-standing legacy of quality support to its valued Air Force customers. In this time of vital need, the mission-critical services delivered in support of the warfighters through the CAPS contract are essential to fulfillment of our national priorities. Together with HJ Ford's protege, HMRTECH, we are proud to be associated with this mission and will diligently execute our responsibilities," said Robert L. Smith, DRC senior vice president and general manager of the Acquisition Management and Engineering Group. About Dynamics Research Corporation Dynamics Research Corporation (DRC) is a leading provider of mission- critical technology management services and solutions for government programs. DRC offers forward-thinking solutions backed by a history of excellence and customer satisfaction. Founded in 1955, DRC is a publicly held corporation (NASDAQ:DRCO) and maintains more than 25 offices nationwide with major offices in Andover, Massachusetts; Vienna, Virginia; and Fairborn, Ohio. For more information please visit our website at http://www.drc.com/. Safe harbor statements under the Private Securities Litigation Reform Act of 1995: Some statements contained or implied in this news release, may be considered forward-looking statements, which by their nature are uncertain. Consequently, actual results could materially differ. For more detailed information concerning how risks and uncertainties could affect the company's financial results, please refer to DRC's most recent filings with the SEC. The company assumes no obligation to update any forward-looking information. CONTACTS: Investors: Dave Keleher SVP and Chief Financial Officer 978.289.1615 Media: Duyen "Jen" Truong, Sage Communications (for DRC) 703.584.5645 DATASOURCE: Dynamics Research Corporation CONTACT: Investors, Dave Keleher, SVP and Chief Financial Officer of Dynamics Research Corporation, +1-978-289-1615, or ; or Media, Duyen "Jen" Truong, Sage Communications for Dynamics Research Corporation, +1-703.584.5645, or Web site: http://www.drc.com/

Copyright