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:

                              May 26, 1999


                             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



VSE CORPORATION



Item 5.    OTHER EVENTS

     On May 26, 1999, VSE Corporation (the "Registrant") reported on the sale
of its software products and services business segment, which consists of the
operations of CMstat Corporation ("CMstat"), to a company wholly owned by
CMstat's CEO, John S. Daley.

Item 7.  (c)  EXHIBITS

     (i)  A copy of the Registrant's press release regarding the matter
discussed above under Item 5.


                                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 1, 1999                      /s/ T. J. Corridon
                                         ______________________________________
                                         T. J. Corridon, Senior Vice President,
                                               and Chief Financial Officer
                                              (Principal Financial Officer)

EX-99.PRESSRELEASE

                                VSE CORPORATION
            2550 Huntington Avenue, Alexandria, Virginia 22303-1499
                  Telephone (703) 960-4600 Fax (703) 960-2688



Nasdaq Symbol:  VSEC      VSE Contact:  T. J. Corridon (CFO) 703/329-4669
                          CMstat Contact:  J. S. Daley (President) 619/597-7502


                      "VSE SELLS  CMSTAT AND RETURNS
                          FOCUS TO CORE BUSINESS"


     Alexandria, Virginia, May 26, 1999 -  VSE Corporation ("VSE") sold its
software products and services business segment, which consists of the
operations of CMstat Corporation ("CMstat"), to a company wholly owned by
CMstat's CEO, John S. Daley.  CMstat was acquired by VSE in 1995.

     Don Ervine, VSE's Chairman and Chief Executive Officer, said, "We
have learned VSE is not structured to provide the necessary investments of time
and capital to this segment. We will now return  our attention to our core
business of engineering, logistics, management, and technical services that has
achieved record revenues and earnings over the last two years."

     Ervine also said, "After owning CMstat for four years, we have
determined that both VSE and CMstat will work better as independent
companies.  CMstat is a high technology commercial software products and
services company designed to provide configuration and change management
solutions to customers as diverse as GTE and the U.S. Postal Service.  While
there is a requirement for CMstat's products and services in both government
and commercial applications, it is important that CMstat be allowed to operate
as a commercial organization, with access to commercial venture capital. VSE
expects to continue its relationship with CMstat as a value-added reseller
("VAR") of CMstat software solution products and services.

     Jack Daley, CMstat's Chief Executive Officer, said, "CMstat's web-
enabled products play a key role in providing configuration and change
management solutions to customers, both in a stand-alone mode and as
integrated with other leading industry product data management systems.  We
are excited about operating as an independent company, and we expect to
continue to develop and expand our products and services in 1999 and beyond.

     CMstat revenues and operating loss for the three month period ended
March 31, 1999, were $684,000 and $216,000, respectively.  For the twelve
month period ended December 31, 1998, CMstat  revenues and operating loss
were $3,042,000 and $2,263,000, respectively.

     VSE's on going operations showed revenues and operating income for
the three month period ended March 31, 1999, of $40,233,000 and $578,000
respectively.  For the twelve month period ended December 31, 1998, the
revenues and operating income were $177,191,000 and $4,949,000, respectively.

     VSE provides diversified services and products to the engineering, energy,
environment, health care, information technology, and defense services markets.
VSE's principal customers are agencies of the U. S. government and other prime
contractors. The company has about 1,300 employees providing services and
products from more than 20 locations across the United States and around the
world.
___________________

"CMstat"  is a service and trademark of CMstat Corporation.

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 VSE's actual
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.

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