Four firms, including URS Corporation (URS - Analyst Report), have received an indefinite delivery/indefinite quantity contract from the U.S. Army, to support the Army’s Training Support Systems program. Through this contract, URS will be able to compete for a huge range of projects. Base term of the contract is one year with four one-year option periods. For all the four firms, total value is $491 million over the full five years.
The contract has been awarded for the expansion of the Army’s former Sustainable Range Program. The U.S. Army’s Training Support Systems program is being performed at bases around the world. URS through its range of support services including range modernization and operations, training exercise support and development and simulations, will aid this program.
Improving capital spending environment will continue to benefit both the power and industrial and commercial sectors. The company’s infrastructure business continues to expand in international markets. These positive factors will boost the company’s performance in 2011.
URS Corp. was originally incorporated in California on May 1, 1957 as Broadview Research Corporation. On May 18, 1976, it was re-incorporated in Delaware under the name URS Corporation. The name “URS Corporation” was formally adopted on February 21, 1990. URS Corp. 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. It is also a major U.S. federal government contractor in the areas of systems engineering and technical assistance, and operations and maintenance. Major competitors of URS are AECOM Technology Corporation (ACM - Analyst Report), Fluor Corporation (FLR - Analyst Report) and KBR Inc. (KBR).
We currently maintain our Neutral rating on URS Corp. with a Zacks #4 Rank (short-term Sell recommendation) over the next one-to-three months.