Jacobs Wins Twin Contracts
The San Francisco Bay Area Rapid Transit (:BART) awarded Jacobs Engineering Group Inc. (JEC) a contract to deliver on-call construction management services. The contract extends its support to the agency’s Capital Improvement Program. Jacobs will be liable for the delivery of design-bid-build, design-build and procurement projects, valued at $20 million.
Per the contract, Jacobs’s services include resident, field and office engineering services; hazard analysis and safety certification, material testing, noise and vibration monitoring and data analysis, cost and schedule management, coordination with other agencies; and claims management. The duration of the contract is expected to be five years.
According to the Jacobs Group Vice President, Kevin McMahon, the project will help improve the quality of life for residents across the region. BART is believed to be the fifth-busiest rapid transit system in the US, carrying roughly 350,000 passengers weekly, on an average.
On the same day, Jacobs won a contract from Santos GLNG Project in Australia with the terms of providing support for coal seam gas field development.
The contract value is undisclosed, with a duration of three and a half years along with an extension option of a year. The project is an initiation by the GLNG Operations, which is a joint venture between Australia’s popular domestic gas producer Santos, and PETRONAS, Total, and KOGAS, who are renowned in the world energy market.
Jacobs is responsible to provide commissioning and start up management support for the transition of facilities into sustainable operations. Along with the services, Jacobs is responsible for maintaining community and environmental regulations.
We currently maintain a Neutral recommendation on Jacobs. The stock also bears a Zacks #3 Rank, which implies a short-term (1-3 months) Hold rating. The company competes against industry players including Fluor Corporation (FLR), holding a Zacks #4 Rank implying a short-term (1-3 months) Sell rating and Foster Wheeler AG (FWLT), holding a Zacks #3 Rank.
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