Jacobs Engineering Group Inc. (JEC - Analyst Report) secured a contract from one of Australia’s largest domestic gas producers, Santos Limited. The contract involves providing concept development study for Santos’ Cooper Gas Growth (CGG) satellite developments based in South Australia.
The study is an indispensable part of the total project from Santos. Per the contract, Jacobs is expected to provide study management along with engineering and design services. However, the total contract value is not disclosed by the company.
On the same day, Jacobs won another contract from NASA to provide testing and operations support services at Kennedy Space Centre (KSC) in Florida.
Per the contract, Jacobs will be in charge of total management and will be responsible for implementing ground systems capabilities along with flight hardware processing and launch operations at the space centre. This strategic tie-up entitles Jacobs to provide services to many divisions of KSC namely Ground Processing Directorate and the International Space Station, Ground Systems Development and Operations, Space Launch System, Orion Multi-Purpose Crew Vehicle, and Launch Services programs.
The contract, which spans for a period of a year and seven months, also offers two two-year option years and four one-year option years. The contract is valued at a maximum of $1.37 billion.
The contract also engages two subcontractors; ERC Incorporated and Aerodyne Industries, LLC.
Both the contract wins are expected to enhance Jacobs’ market position along with building a strong relationship with big market players in the industry.
Jacobs is one of the world's largest and most diverse providers of technical, professional, and construction services. We currently maintain a Neutral recommendation on the stock. Jacobs also bears a Zacks Rank #3 (a short-term ‘Hold’). The company competes against industry players including Willdan Group (WLDN), holding a Zacks Rank #1 (a short-term ‘Strong Buy’) and National Technical Systems Inc. , holding a Zacks Rank #2 (a short-term ‘Buy’).