JEC Jacobs Engineering Group Inc

Continuing with the success of the company’s business model, Jacobs Engineering Group Inc. (JEC) announced strategic contract wins-- targeted toward sustained growth and expansion for the future ahead.

The company has recently been awarded a task order under the GSA (U.S. General Services Administration) Alliant Contract by the Secretary of the Air Force/ Financial Management, Air Force Financial Systems Operations (SAF/FMP AFFSO) at Wright-Patterson Air Force Base (WPAFB) in Dayton, Ohio. The contract calls for an opportunity to expand Jacobs’ relationship with the Air Force by providing IT support for Air Force financial applications.

The contract envisages Jacobs to provide a variety of services for financial applications, including maintenance, sustenance and enhancement support for EFINANCE, LEAVEWEB and FMSUITE. Jacobs will also be supporting the integration activities of EFINANCE, LEAVEWEB and FMSUITE with the future AF Enterprise Resource Planning (ERP) efforts.  The contract value has been estimated at $8.4 million.

Another prestigious contract award came from the University of Minnesota (UMN) in Minneapolis. Jacobs will be providing design services for the decommissioning, historic preservation and construction of the Old Main Utility Building (OMUB) Power Plant at UMN, which is officially known as the Combined Heat and Power Plant project.

The power plant replacement was one of the top priorities that the University presented to the Minnesota Legislature for funding in the 2012 Capital Request. Besides, Jacobs will be supporting the University of Minnesota to preserve the source of heat and electricity while reducing the campus' carbon footprint with a new, natural gas-fired cogeneration plant; in accordance with its published Climate Action Plan.

To augment the existing coal-burning facility, the contract calls for a 14MW combined heat and power plant, fueled by clean-burning natural gas. The new natural gas-fired cogeneration plant is expected to power UMN's Minneapolis campus with electricity and steam. Jacobs will be responsible for verifying the results of a campus load study, determining how best to decommission the existing equipment, placing a resident on-site engineer, managing the historic preservation of the OMUB, designing the new plant while providing construction administration services.

Jacob’s work will involve 3D modeling, interface coordination, detailed engineering and construction plans and environmental compliance, and cost estimates. The total installed cost (TIC) is estimated by the officials to be around $81 million.

About Jacobs

Jacobs Engineering Group, one of the world's largest and most diverse providers of technical, professional, and construction services, serves a variety of industrial, commercial and government clients across a global network. The company’s growing international exposure and diversification across markets, geographies and services have given it a competitive edge over its peers such as, Fluor Corporation (FLR) and Foster Wheeler AG (FWLT).

We currently hold a Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank, implying a short-term (1-3 months) Hold rating.

 
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