Tetra Tech Wins Contract – Analyst Blog

Tetra Tech Inc. (TTEK) won roughly $29.0 million contract from the U.S. Army Corps of Engineers (USACE), a federal agency primarily investigating, developing and maintaining the water and related environmental resources of the nation. The company contracted to build storm protection systems, including the levees, sector and sluice gates and other related infrastructure.

 

Tetra Tech will operate through its New Orleans-area offices and will get support from other local Louisiana business partners. The firm-fixed-price project is expected to be complete by August 2011.

 

The project is the third hurricane risk reduction contract that Tetra Tech won since August 2009. Earlier, the company was awarded a $33.3 million contract by the U.S. Army Corps of Engineers (USACE) to build a hurricane risk reduction floodwall and five floodgates in New Orleans, Louisiana.  

 

U.S. federal government remains a significant client for Tetra Tech, which contributed over 50.0% of total revenue in the second quarter of 2010. A significant amount of this revenue was derived under multi-year contracts. Future flow of revenues from these sources will largely depend on the level of government program fundings and Tetra Tech’s ability to retain clients.

 

Tetra Tech is a leading provider of consulting, engineering, program management, construction, and technical services addressing the resource management and infrastructure markets. The Company supports government and commercial clients by providing innovative solutions focused on water, the environment, and energy. The firm is headquartered in Pasadena, California. Prime competitors of the company are Arcadis NV, Shaw Group Inc. (SHAW) and URS Corporation (URS).