ABM Industries Wins US DoD Contract
ABM Industries Incorporated’s (ABM) business unit ABM Government Services recently secured a contract from Department of Defense (DoD) to provide a full range of logistics support services to the U.S. Army base, Fort Benning, Ga. The modification logistics contract was for approximately $42.9 million in the base year and $50 million in the following 4 years for an aggregate of $268.9 million over a five-year period.
Under this contract, ABM Industries will provide material maintenance services, and retail supply and transportation support to the navy. The logistics support contract falls under the U.S. Army's Enhanced Army Global Logistics Enterprise (:EAGLE) program. The program centralizes functional responsibility and maximizes efficiency by combining maintenance, supply and transportation support services into one performance requirement.
The contract win amid a stiff competitive environment signifies the inherent service quality of ABM Industries. The company provides various mission critical services to address challenges of military and other government agencies, providing them with adequate mission support services.
ABM Industries has a healthy contract pipeline and is particularly strong in government business. In the last reported quarter, total revenue increased 12.8% year over year to $1,216.8 million, primarily driven by accretive acquisitions and organic growth from new sales and expansion of services with existing clients.
Headquartered in San Francisco, Calif., ABM Industries provides engineering, janitorial, parking, and security services to commercial, industrial, institutional, and retail facilities across the U.S. as well as Puerto Rico, British Columbia and Canada.
ABM Industries currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth considering now in the industry include Information Services Group, Inc (III), carrying a Zacks Rank #1 (Strong Buy), and Corporate Executive Board Co (CEB) and Huron Consulting Group Inc (HURN), both carrying a Zacks Rank #2 (Buy).
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