FWLT (MM)

Jacobs Engineering Group Inc.(JEC) announced the receipt of two significant contracts; one from the Intelligence Advanced Research Projects Activity (IARPA) and the other from EDF Energy.

The contract from IARPA entitles the company to provide services under Aggregate Contingent Estimation (ACE) program for combining event forecasts from experts to improve forecast accuracy.

Jacob’s Interrelated Forecasts Reflecting Models behind Experts' Decisions (INFORMED) system provides individual forecasts, based on demographic information and underlying models in order to derive estimates. Jacobs considers the new partnership with IARPA as a significant support to boost their intelligence analysis expertise.

The potential value of the IARPA contract will be approximately $11 million with a one-year base period of performance and three one-year award options effective from May 25, 2011.

On the other hand, EDF energy has awarded the company with a five-year framework contract for supporting Cottam and West Burton power stations near Nottingham, United Kingdom.

Under this contract, Jacobs will be providing engineering, procurement and construction management services at the power stations. Moreover, the company will be supporting EDF Energy's ongoing environmental compliance program and asset life extension at each of its 2000 megawatt coal fired stations. The value of the EDF contract has not been disclosed yet.

Jacobs Engineering Group Inc. is one of the world's largest engineering and construction companies providing services to a variety of industrial, commercial and government clients across a global network. The company directly competes with its peers, such as Fluor Corporation (FLR), Foster Wheeler AG (FWLT).

We currently maintain a long term Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank, which translates into a short-termHold rating (1-3 months).

 
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