Engineering and construction company, Jacobs Engineering Group Inc. (JEC - Analyst Report), has further consolidated its position in the industry with two more contract wins recently.
Jacobs received a contract from the Department of Homeland Security, in order to supply program management, engineering and technology support services under the Technical, Acquisition and Business Support Services (TABSS) contract. The contract spans over five years, with an $11 billion funding limit allocated to the TABSS contract.
Jacobs is obligated to provide designing, development and other activities related to assets, processes and systems along with planning and administering programs and projects. These activities form a part of Domain 1 of the contract, which has been divided into three domain areas. Moreover, the new contract signifies a healthy relationship between the two parties in the contract.
Additionally, on the same day, Jacobs inked a contract with Polimeri Europa UK Limited for equipping the latter with engineering, procurement and construction management services. The contract value has not been revealed. The contract deals with the expansion activities at the Grangemouth, Scotland based plant of Polimeri. The expansion has been undertaken in order to increase Polimeri’s rubber production capacity at the plant.
The relationship between the two companies is expected to be long term and beneficial to both. Jacobs mostly conducts its operations through repeat business, since it maintains long-term relationships with its customers. Roughly 94% of its business conducted in the last reported quarter was earned through repeat customers. Going forward, we expect Jacobs to continue benefiting from it.
Jacobs currently carries a Zacks Rank #3 (Hold). Other stocks worth a look in the engineering and construction industry are Michael Baker Corporation , carrying a Zacks Rank #1 (Strong Buy); whereas, Harris & Harris Group, Inc. and Willdan Group, Inc. (WLDN) carry a Zacks Rank #2 (Buy) each.