Ownership Submission
FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  Karlson William E
2. Date of Event Requiring Statement (Month/Day/Year)
10/17/2006
3. Issuer Name and Ticker or Trading Symbol
Stanley, Inc. [SXE]
(Last)
(First)
(Middle)
C/O STANLEY, INC., 3101 WILSON BOULEVARD, SUITE 700
4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
SVP, Outsourcing Solutions Div
5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

ARLINGTON, VA 22201
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)
2. Amount of Securities Beneficially Owned
(Instr. 4)
3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)
4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock 1,417,590 (1)
D
 
Common Stock 78,990 (2)
I
By self as Trustee of the Stanley, Inc. Employee Stock Ownership Plan
Common Stock 120,960 (3)
I
By Executive Deferred Compensation and Equity Incentive Trust
Common Stock 150,000
I
By William E. Karlson 2006 Irrevocable Dynasty Trust

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)
2. Date Exercisable and Expiration Date
(Month/Day/Year)
3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)
4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)
6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Option to buy 03/30/2003 03/29/2008 Common Stock 12,600 $ 0.53 D  
Option to buy 03/31/2003 03/31/2008 Common Stock 11,400 $ 1.44 D  
Option to buy 03/31/2004 03/31/2009 Common Stock 11,400 $ 1.44 D  
Option to buy 07/01/2003 07/01/2008 Common Stock 6,000 $ 1.78 D  
Option to buy 07/01/2004 07/01/2009 Common Stock 6,000 $ 1.78 D  
Option to buy 07/01/2005 03/31/2010 Common Stock 6,000 $ 1.78 D  
Option to buy   (4) 04/30/2008 Common Stock 18,000 $ 2.59 D  
Option to buy   (5) 05/05/2011 Common Stock 22,500 $ 8.65 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Karlson William E
C/O STANLEY, INC.
3101 WILSON BOULEVARD, SUITE 700
ARLINGTON, VA 22201
  X     SVP, Outsourcing Solutions Div  

Signatures

By: /s/ William E. Karlson 10/17/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Includes 221,130 shares held in trust for Mr. Karlson under the Stanley, Inc. Employee Stock Ownership Plan (the "ESOP").
(2) Consists of unallocated shares held by the ESOP, for which Mr. Karlson serves as trustee. Under the terms of the ESOP, the trustees are currently obligated, with respect to certain matters, to solicit participants to vote shares of Stanley common stock allocated to participants' accounts, and the trustees generally will vote such shares in accordance with the voting decisions of the participants. Mr. Karlson disclaims beneficial ownership of these shares.
(3) Represents restricted stock held in the Executive Deferred Compensation and Equity Incentive Trust, of which 29,910 shares were vested and 90,780 shares are unvested. The unvested shares will vest upon completion of an initial public offering.
(4) Of the 18,000 options held, 10,800 are currently exercisable and 7,200 will vest upon completion of an initial public offering.
(5) These options vest over a five year period beginning on date of grant, May 4, 2006, with a final vesting date of May 4, 2011. None are currently exercisable and none will vest upon completion of an initial public offering.

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