Last week, Jacobs Engineering Group Inc. (JEC) was awarded a three-year extension on the Engineering and Science Contract (ESC) at the NASA Johnson Space Center (JSC) with an estimated value of $978 million. This brings the total contract value to approximately $2.16 billion through Jan 31, 2013, with an eight-year total performance period. 

The Jacobs Team supporting NASA ESC includes five major subcontractors: Hamilton Sundstrand (HS), Barrios Technology Ltd. (Barrios), MEI Technologies Inc. (MEI), ERC Incorporated (ERC), and GeoControl Systems Inc. (GCS). 

Jacobs provides services to Johnson’s Engineering Directorate and Astromaterials Research and Exploration Science office. Specific support includes engineering products and services for the International Space Station (ISS), Space Shuttle and other spacecraft flight programs; design, development, certification and production of hardware and software; operation and maintenance of on-site laboratories and facilities; and research and development for new technology. In addition, Jacobs is supporting the Engineering Directorate in the design and development of critical hardware for the Orion Project, including the Crew Exploration Vehicle (CEV) Parachute Assembly System (CPAS). 

With annual revenue exceeding $12 billion, Jacobs is one of the world’s largest and most diverse providers of technical, professional and construction services. Its major competitors are Foster Wheeler AG (FWLT) and Fluor Corp. (FLR). 

The company’s diversification in terms of markets, geography and services will continue to facilitate future growth. Moreover, Jacobs’ cost focus puts it in a dominant position to expand margins under difficult economic circumstances. 

Jacobs is among those infrastructure stocks that may benefit from the coming construction boom. Looking forward, as banks get healthy and are willing to lend and the next round of stimulus begins, investors can expect infrastructure projects to increase.
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