Tetra Tech EC, an operating unit of Tetra Tech, Inc. (TTEK - Analyst Report), recently won a $100 million contract from the U.S. Navy to provide environmental remediation services at various Department of Defense (DoD) installations across the country. Under this indefinite delivery/indefinite quantity (ID/IQ) award, Tetra Tech will be paid an award fee in addition to the cost of the contract. The award has a one-year base period with an option to extend it for four additional years.
Per the U.S. Navy Unrestricted Remedial Action Contract (RAC) VI, Tetra Tech EC is expected to actively participate for the remedial action requirements of the U.S. Navy. Additionally, to support the Southwest division of Naval Facilities Engineering Command (NAVFAC), Tetra Tech EC is expected to perform removal actions, expedite and emergency response actions, pilot and treatability studies, facilities operation and maintenance, and other related activities.
Tetra Tech remediation program will provide services to various DoD installations including Alaska, Arizona, California, Colorado, Nevada, New Mexico, Oregon, Utah, Washington, and other installations within the NAVFAC Atlantic area.
The recent contract win is the fourth such consecutive contract awarded by the U.S. Navy to Tetra Tech. In Mar 2013, the company had received a similar contract for 5 years to provide environmental remediation services in the Atlantic area.
Tetra Tech is a leading player in providing services like consulting, engineering and program management. Tetra Tech also supports the government and the commercial clients by providing solutions in environmental services, water, energy, infrastructure and natural resources.
Tetra Tech currently carries a Zacks Rank #5 (Strong Sell). The company’s stock prices have crashed 12% since its management lowered the financial guidance for the third quarter of fiscal 2013 to a loss of 30 cents to 50 cents per share from an earlier guidance of 32 cents to 42 cents earnings per share.
Some of the better placed stocks within the Pollution Control industry worth a look are CECOEnvironmental Corp. (CECE - Snapshot Report), Casella Waste Systems Inc. (CWST - Snapshot Report) and Calgon Carbon Corporation (CCC - Analyst Report). While CECO carries a Zacks Rank#1 (Strong Buy), Casella and Calgon each carry a Zacks Rank #2 (Buy).