Jacobs' Wins Two Contracts - Analyst Blog
January 09 2013 - 7:50AM
Zacks
Jacobs Engineering Group
Inc. (JEC) secured a contract from one of Australia’s
largest domestic gas producers, Santos Limited. The contract
involves providing concept development study for Santos’ Cooper Gas
Growth (CGG) satellite developments based in South Australia.
The study is an indispensable part
of the total project from Santos. Per the contract, Jacobs is
expected to provide study management along with engineering and
design services. However, the total contract value is not disclosed
by the company.
On the same day, Jacobs won another
contract from NASA to provide testing and operations support
services at Kennedy Space Centre (KSC) in Florida.
Per the contract, Jacobs will be in
charge of total management and will be responsible for implementing
ground systems capabilities along with flight hardware processing
and launch operations at the space centre. This strategic tie-up
entitles Jacobs to provide services to many divisions of KSC namely
Ground Processing Directorate and the International Space Station,
Ground Systems Development and Operations, Space Launch System,
Orion Multi-Purpose Crew Vehicle, and Launch Services programs.
The contract, which spans for a
period of a year and seven months, also offers two two-year option
years and four one-year option years. The contract is valued at a
maximum of $1.37 billion.
The contract also engages two
subcontractors; ERC Incorporated and Aerodyne Industries, LLC.
Both the contract wins are expected
to enhance Jacobs’ market position along with building a strong
relationship with big market players in the industry.
Jacobs is one of the world's
largest and most diverse providers of technical, professional, and
construction services. We currently maintain a Neutral
recommendation on the stock. Jacobs also bears a Zacks Rank #3 (a
short-term ‘Hold’). The company competes against industry players
including Willdan Group (WLDN), holding a Zacks
Rank #1 (a short-term ‘Strong Buy’) and National Technical
Systems Inc. (NTSC), holding a Zacks Rank #2 (a short-term
‘Buy’).
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
(NTSC): ETF Research Reports
(WLDN): ETF Research Reports
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