Tetra Tech Inc. (TTEK - Free Report) , a leading provider of environmental services, recently got engaged in a global clean energy development program. The company has been awarded a $350 million contract to provide technical assistance to the U.S. Agency for International Development (USAID) for such global programs.
This is an indefinite delivery/indefinite quantity (ID/IQ) contract with a term of five years. The contract value is shared by seven companies, including three small businesses.
Developing countries are witnessing rising demand for the use of clean energy services. USAID is engaged in such development programs as these and Tetra Tech is assisting it by designing clean energy strategies.
Tetra Tech helps in the development of clean energy solutions; drafts environment related energy policies and also brings in private sector’s involvement and investment in clean energy. Further, Tetra Tech will assist USAID in the latter’s efforts to reduce global warming and design technologies which will help in achieving energy efficiency and carbon sequestration. The program also includes improvement of foreign and local government capacity in the energy sector to handle natural or man-made disasters.
Earlier in Jan 2013, Tetra Tech had acquired American Environmental Group, to expand its offerings in the area of environmental remediation (included under the Remediation and Construction Management (RCM) segment). In fiscal 2011, the RCM segment contributed 22.9% to the total revenue.
Tetra Tech is performing well in its international market, benefiting from the rising demand for clean resources. However, weak economic condition in Western Europe remains a matter of concern.
Tetra Tech Inc. currently has a Zacks #2 Rank (Buy). The other companies that can also be considered at the moment are Clean Energy Fuels Corp. (CLNE - Free Report) and Tyco International , both of which have a Zacks Rank #2.