Engineering, construction and technical services provider URS Corporation (URS - Analyst Report) recently announced that it has received an indefinite-delivery/indefinite-quantity (ID/IQ) contract from the Naval Facilities Engineering Command, Atlantic, to accomplish global contingency construction projects worldwide. URS Corporation is one of the four awardees in this ID/IQ contract worth about $800 million.
The contract has a span of five years, comprising one base year with four one-year option periods. As per the terms of the contract, URS Corporation will either need to bid or will be awarded task orders by the U.S. Navy on behalf of the Department of defense and other federal agencies.
The task orders under the contract will include providing construction and engineering services related to natural disasters, humanitarian assistance, conflict, or other projects with similar features. Apart from major construction works, URS Corporation is also expected to occasionally provide base operating support services under specific task orders.
We believe that URS Corporation has the relevant skill and expertise to render the services required for Navy’s contingency construction contracts. URS Corporation has a rich experience in providing support to military on major engineering and construction projects. Recently, it had also received an ID/IQ multiple award contract from the U.S. Army Engineering and Support Center, Huntsville, Alabama to provide design-build services for the Medical Repair and Renewal Program in the continental U.S. and abroad.
URS Corporation currently has a Zacks Rank #3 (Hold). Better stocks within the industry that warrant a look includes Michael Baker Corporation , Foster Wheeler AG (FWLT - Analyst Report) and Pernix Group Inc. (PRXG). All three stocks carry a Zacks Rank #2 (Buy).