Jacobs (J) Secures Multiple U.S. Government Renovation Deals
Jacobs Engineering Group Inc. J has been selected for providing Indefinite Delivery, Indefinite Quantity (IDIQ) services to U.S. Government Accountability Office (“GAO”). Per this multiple award contract, Jacobs is responsible for revamping and redecorating GAO's headquarters in Washington DC along with 11 field offices across the country.
This is an approximately $25-million contract and has a one-base year and four-year options. According to this architecture and engineering (AE) agreement, Jacobs is responsible for mechanical, plumbing, electrical, structural, landscape, architectural, and historical engineering and design of GAO facilities and infrastructure all over the country. Also, the work may comprise new construction, alterations, renovation, mechanical, electrical, plumbing and fire suppression system improvements and replacement.
With respect to this, senior vice president and general manager of Jacobs Federal & Environmental Solutions’, Tim Byers, said, “With this new contract, we can expand on a proven track record of work modernizing similar aging buildings for federal clients in the national capital region.”
Jacobs’ Focus on Government Solution Driving Performance
Jacobs is one of the leading providers of professional, technical and construction services to governmental clients. The company’s Critical Mission Solutions or CMS segment benefits from well-funded government programs, U.S. Department of Defense or DoD, mission-IT, space, nuclear as well as 5G-related projects.
Jacobs acquired KeyW, thereby enhancing the higher-margin CMS business through intelligence solutions capabilities in high-security clearance areas. KeyW, which provides engineering/technology solutions in intelligence, cyber and related national security concerned areas for the U.S. government, will compliment Jacobs' CMS segment. Acquisitions of KeyW and John Wood Group’s nuclear business further positioned Jacobs as a leader in high-value government services.
Jacobs’ shares have gained 27.1% in the year-to-date period compared with the Zacks Engineering - R and D Services industry’s 28.7% rally. Although the stock has underperformed the industry during the said period, the company’s earnings estimates for fiscal 2021 have moved up over the past 30 days, depicting analysts’ optimism regarding its bottom-line growth potential. This optimism is backed by the company’s robust project execution and healthy segmental performance. Also, the company’s shifted focus to digital and leadership in strategic end-markets bodes well.
Zacks Rank & Key Picks
Jacobs — which shares space with Quanta Services, Inc. PWR, AECOM ACM and KBR, Inc. KBR in the Zacks Engineering - R and D Services industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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