Jacobs Engineering Group Inc. (JEC) was awarded a $99 million contract to provide architect and engineer (A-E) design services to the Federal Aviation Administration’s (FAA) EnRoute Facilities Planning and Modernization Program.
The company said that the Indefinite Delivery/Indefinite Quantity contract includes a 60-month base period and two 2-year options, making the total contract 9 years in duration, if all options are exercised.
As part of this contract, Jacobs will provide A-E design and related services to support the National Airspace System (NAS), Air Route Traffic Control Centers (ARTCCs) and Combined EnRoute Radar Approach Control Facilities (CERAPs) at San Juan and Guam, and other FAA owned, operated, or sponsored facilities.
Besides, Jacobs also won a contract from South East Water Ltd. of the United Kingdom to provide program management, design, construction, and construction management services associated with South East Water’s Asset Management Plan (AMP5) for 2010−2015. The contract includes the option to extend the provision of services through AMP6 to 2020. The company did not disclose the contract value.
With annual revenues 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).
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. Looking ahead, management expects full-year 2010 earnings per share to be in a range of $2.00 to $2.60. The company’s diversification in terms of markets, geography and services will continue to facilitate future growth.
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