H.E.R.C. Products Inc. Announces Five-Year Contract with U.S. Navy

Oct. 14, 2002

H.E.R.C. Products, Inc., has been awarded a five-year contract with the U.S. Navy to use its chemical cleaning technology to clean vacuum sewer CHT systems on U.S. Navy and other military vessels on a worldwide basis.

The negotiated contract is for "indefinite delivery indefinite quantity" task orders for the first year award and four option years through the USN Supervisor of Shipbuilding, Portsmouth, Va. Of all the firms responding to the Navy solicitation, two awards were made for the contract after careful evaluation in accordance with the solicitation based on a determination of "best value" to the Navy. The contract maximum is a total of $5,948,312 for each of the five years.

S. Steven Carl, chairman and chief executive officer of H.E.R.C. commented, "We are pleased with being selected by the U.S. Navy to continue to participate in the maintenance of the CHT systems for the worldwide Navy fleet. This new award follows on our previous five-year CHT chemical cleaning contract with the Navy, which generated revenue of approximately $12.5 million from the 1997 base year to the conclusion of the contract's fifth year option in Sept. 2002, and also provides H.E.R.C with service opportunities in addition to CHT cleaning. We look forward to serving the Navy well in our country's time of need."

Source: H.E.R.C. Products Inc.

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