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Jacobs' (J) Contract Winning Spree Continues, Wins IDIQ Deal

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Jacobs Engineering Group Inc. (J - Free Report) recently received an indefinite delivery/indefinite quantity contract (IDIQ) from the Naval Facilities Engineering and Expeditionary Warfare Center (NAVFAC EXWC). The company will provide waterfront facilities inspection and assessment services outside the contiguous United States (OCONUS).

The contract, which is for five years, comprises field investigations; engineering analysis of mechanical and electrical systems; environmental studies in support of permit applications to federal, state and local regulatory agencies; and underwater geotechnical and above water surveying.

Jacobs Federal & Environmental Solutions senior vice president and general manager Tim Byers said “As the industry leader in Marine and Port Facilities, we understand the critical importance of maintaining the structural integrity of the U.S. Navy's waterfront facilities around the world in support of maximizing Naval shore readiness.”

The company has a team of engineer-divers who can provide high quality underwater inspections and assessments worldwide. These engineers can also engage in the engineering assessment, analysis, development of alternatives, detailed design and construction inspection phases.

Shares of the company have gained 35.5% in the past six months, compared with the industry's rally of 56.8%.

Contract Wins to Drive Growth

Jacobs’ business has been gaining strength on the back of solid contract wins. It recently secured 13 positions on Transport for London's (TfL) renewed Transport Planning & Impact Monitoring Services Framework. TfL expects the framework to operate for a maximum four-year period, with immediate contract mobilization.

The company has also received multiple contracts from the Jacksonville Port Authority (“JAXPORT”) to support expansion of Florida’s largest container port. Per these contracts, the company will provide civil, structural and marine engineering consulting and design services for the JAXPORT. Each contract spans three years with an option of renewal for two additional one-year periods.

Backlog at fiscal 2020-end was $23.8 billion, reflecting an increase of 5.5% year over year (up 3% on a pro-forma basis). This reflects persistent solid demand for Jacobs' consulting services. Notably, P&PS backlog was up 4.2% year over year for the fiscal fourth quarter to $14.7 billion.

Zacks Rank

Jacobs — which shares space with Quanta Services, Inc. (PWR - Free Report) , AECOM (ACM - Free Report) and KBR, Inc. (KBR - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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