Recently Tetra Tech Inc. (TTEK - Analyst Report) bagged a $100 million contract from the U.S Department of Defense. The contract is an indefinite-delivery indefinite-quantity agreement, with the maximum value of $100 million inclusive of a cost plus award fee.
As per the terms of the contract, the service period may be extended upto a maximum period of 60 months and hence, is expected to be complete by Mar 2018. The contract requires TTEK to provide environmental remediation services for projects at various locations, primarily within the Naval Facilities Engineering Command (NAVFAC) Atlantic area of responsibility (AOR).
This mainly includes regions of North Carolina, Virginia and Maryland comprising, 29%, 25% and 15% of the total area under the supervision of AOR. Other principal geographical areas of operation will include Connecticut (5%); Maine (5%); Massachusetts (5%); Washington, D.C. (5%); Africa (5%); Pennsylvania (4%); West Virginia (1%); and Vieques, Puerto Rico (1%).
NAVFAC does not intend to issue any task order as of now. However, definitive funds will be awarded to Tetra Tech with regard to specific Task Orders as per requirement. Tetra Tech may be required to extend its services to any place that is included in the AOR covered by NAVFAC Atlantic or outside of NAVFAC Atlantic’s purview (as per necessities of the Government).
Out of the total three proposals received for the contract, Tetra Tech’s was chosen and the company was awarded with this IDIQ contract. This contract is expected to act as a protective gadget for the company to serve and be paid for as and when needed.
Tetra Tech Inc. currently has a Zacks #3 Rank (Hold). The other companies that can also be considered at the moment are Calgon Carbon Corporation (CCC - Analyst Report), CECO Environmental Corp. (CECE - Snapshot Report) and Tyco International (TYC - Analyst Report), all having a Zacks Rank #2.