Aecom Technology Corporation. (ACM - Analyst Report) has recently procured a $94.6 million contract from the Los Angeles Community College District (LACCD) for a building project. The entire development program spanning over 14 years is expected to cost around $6 billion. The final phase of the project is likely to be completed within 5 years.
The program involves renovation and modernization of nine colleges in the districts and upgradation of related facilities for students, faculty and staff. The project will be primarily financed through the taxpayer-approved bonds that will be further complemented by the state government of the state of California.
As per the terms of the contract, Aecom will be utilizing the project funds to maximize returns. Aecom will also look after the effective management so that project goals are attained at the earliest with centralized governance for the last stage. In the final stage, the balance $2.7 billion will be spent in accordance with the recent LACCD’s reform guidelines and will also be subject to a transparent reporting requirement.
Based in Los Angeles, CA, Aecom is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental and energy. The company's Management Support Services segment offers facilities management and maintenance, training, logistics, consulting, technical assistance, and systems integration services primarily to the agencies of the United States government. Aecom’s management is very optimistic about this project.
Aecom currently carries a Zacks Rank #3 (Hold). Other stocks to watch out for in the construction sector are Michael Baker Corporation , carrying a Zacks Rank #1 (Strong Buy), as well as Harris & Harris Group, Inc. and Quanta Services, Inc. (PWR - Analyst Report), which carry a Zacks Rank #2 (Buy) each.