URS Corp. (URS) announced that it received a Multiple Award Task Order Contract (MATOC) for comprehensive technical design-build and construction services for the U.S. Fish and Wildlife Service (USFWS). The contract vehicle can be used by all other Bureaus within the Department of the Interior (DOI). The order has a potential maximum value of $400 million spread over one base year and four option years.
According to the terms and conditions, URS may compete for task orders to provide design-build, construction, analysis, administration and management services, and environmental, archeological and historical compliance services for a variety of facilities and structures to all bureaus within the DOI.
URS continues to see favorable trends in the federal government sector. There is strong funding for O&M programs – which means increased opportunities to support long-term DoD initiatives and stable funding for the DoE’s environmental and nuclear programs, including the National Nuclear Security Administration.
With respect to infrastructure, URS’ long-term outlook is very positive. State and local governments continue to find resources to fund infrastructure programs. In the previous fiscal year, states and municipalities sold billions of dollars of new bonds to fund infrastructure projects, including education and healthcare facilities as well as new roads. Key projects continue to move forward.
Demand for its services is cyclical and vulnerable to economic downturns and reductions in government and private industry spending. If the economy remains weak or client spending declines further, then its revenues, profits and financial condition may deteriorate. Global economic conditions have caused, and may continue to cause, clients to delay, curtail or cancel proposed and existing projects. This decreases the overall demand for services, leading to weak financial results.
URS provides engineering, construction and technical services. As such, it offers a broad range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients globally.
URS is also a major U.S. federal government contractor in the areas of systems engineering and technical assistance, and operations and maintenance. It has approximately 56,000 employees in a World-wide network of offices and contract-specific job sites in more than 30 countries.
We currently have a Neutral recommendation on URS.
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