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Chicago Bridge & Iron Signs EPA Contract

Zacks Equity Research

Chicago Bridge & Iron (CBI) recently signed the sixth contract with the U.S. Environmental Protection Agency (:EPA). Per the contract, Chicago Bridge & Iron will provide operations and research services at EPA’s Test & Evaluation Facility in Cincinnati, OH, and other EPA satellite facilities.

The Environmental & Infrastructure division of Chicago Bridge & Iron provides full-scale environmental and infrastructure services to government and private-sector clients around the world. Through this division, the company offers program and project management, design-build, engineering and construction, sustainability and energy efficiency, remediation and restoration, science and technology, facility management and emergency response and disaster recovery.

Through another agreement, Chicago Bridge & Iron is managing and conducting developmental work at EPA's Office of Research and Development. This contract requires the company to primarily focus on developing technologies related to waste water infrastructure support and enhancing analytical methods for removing contaminants from drinking water.

On account of yet another contract, Chicago Bridge & Iron is working at EPA's Analytical Operations Center. As per this contract, the company provides quality assurance and technical support services focusing on oversight of the Contract Lab Program as it relates to analysis performed on Superfund sites. This apart, CBI also manages on-site technical research support services for EPA's National Risk Management Research Laboratory/Subsurface Protection and Remediation Division.

So far, Chicago Bridge & Iron has received projects in its core area of expertise, which includes LNG storage tanks and engineering, procurement, construction activities for the energy sector. However, with this contract, Chicago Bridge & Iron can capitalize on the potential in the environmental sector.

Chicago Bridge & Iron primarily engages in the design, build, repair and modification of steel tanks and other steel plate structures. In addition, the company designs and builds petroleum terminals, refinery pressure vessels, low temperature and cryogenic storage facilities and elevated water storage tanks for clients internationally.

Chicago Bridge & Iron currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Tutor Perini Corp. (TPC), ITT Corp. (ITT) and Primoris Services Corporation (PRIM). Tutor Perini sports a Zacks Rank #1 (Strong Buy) while Primoris and ITT carry a Zacks Rank #2 (Buy).

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Read the Full Research Report on TPC

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