8-K

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 8-K

                                Current Report
                       Pursuant to Section 13 OR 15(d) of
                       the Securities Exchange Act of 1934

      Date of Report (Date of earliest event reported):  June 8, 2006


                               VSE CORPORATION
            (Exact Name of Registrant as Specified in its Charter)

                                   DELAWARE
        (State or Other Jurisdiction of Incorporation or Organization)


                 0-3676                            54-0649263
        (Commission File Number)         (I.R.S. Identification Number)


         2550 Huntington Avenue
          Alexandria, Virginia                     22303-1499
(Address of Principal Executive Offices)           (Zip Code)


      Registrant's Telephone Number, Including Area Code:  (703) 960-4600

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities
    Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
    Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))










VSE CORPORATION

Item 8.01  Other Events

Attached hereto as Exhibit 99.1 is a copy of the Registrant's news release
dated June 8, 2006 announcing the increase in the Registrant's annual
dividend.  The news release also announced that the Registrant's
Board of Directors authorized the Registrant to repurchase up to 50,000
shares of VSE Common Stock, par value $.05 per share, subject to corporate
objectives.


Item 9.01  Financial Statements and Exhibits

         (C)  Exhibits

              Exhibit
              Number
              -------
               99.1    News Release, June 8, 2006 entitled "VSE Increases
                       Dividend and Authorizes Stock Buyback"















                                     -2-


                                 SIGNATURES


       Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                                  VSE CORPORATION
                                                  (Registrant)



Date:  June 12, 2006                              /s/ C. S. Weber
                                                  -----------------------------
                                                  C. S. Weber
                                                  Executive Vice President,
                                                  Chief Administrative Officer,
                                                  Secretary







                                     -3-

EX-99.1

                                                                   EXHIBIT 99.1

             VSE Increases Dividend and Authorizes Stock Buyback

             Board Authorizes Repurchase of up to 50,000 Shares

	Alexandria, Virginia, June 8, 2006 - VSE Corporation (Nasdaq: VSEC)
reported today that at a meeting of the Company's Board of Directors held on
June 6, 2006, and on the recommendation of its Finance Committee, the directors
declared a quarterly dividend of $.07 per share, on all outstanding shares
excluding Treasury shares, increasing the annual payout rate by 16.7% from $0.24
to $0.28 per share.

	The $.07 per share dividend declared on June 6, 2006, will be paid on
August 23, 2006, to stockholders of record as of August 2, 2006.

	The Board also authorized the Company, on the recommendation of the
Finance Committee, to repurchase up to 50,000 shares of VSE Common Stock, par
value $.05 per share, from time to time on the open market, subject to corporate
objectives. As of June 7, 2006, the Company had 2,369,049 shares of VSE Common
Stock outstanding.

       This news release contains statements which, to the extent they are not
recitations of historical fact, constitute "forward looking statements" under
federal securities laws. All such statements are intended to be subject to the
safe harbor protection provided by applicable securities laws. For discussions
identifying some important factors that could cause actual VSE results to differ
materially from those anticipated in the forward looking statements in this news
release, see VSE's public filings with the Securities and Exchange Commission.

       VSE provides diversified services to the engineering, energy and
environment, defense, and homeland security markets from more than 20 locations
across the United States and around the world. For the three month period ended
March 31, 2006, VSE reported consolidated revenues of $63.3 million and earnings
of $1.5 million ($0.61 per diluted share). For more information on VSE services
and products, please see the Company's web site at www.vsecorp.com or contact
Len Goldstein, Director of Business and New Product Development at
(703) 317-5202.

       News Contact: C. S. Weber, CAO, at (703) 329-4770.

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