Engineering, construction and technical services provider URS Corporation (URS) announced on Monday that it has received a couple of indefinite-delivery/indefinite-quantity (ID/IQ), multiple-award pillar contracts from the Space and Naval Warfare Systems Center Atlantic (SSC Atlantic). The news, however, failed to cheer the investors and the company’s share price dropped 2.65% to $52.15.
URS is one of the 15 prime contractors to be selected to provide services for business and force support. As for the second contract, URS was chosen as one of the 13 prime contractors to provide integrated cyber security support. The base period for each contract is one year along with four one-year option periods. Both the contracts have a total maximum value of $899 million depending upon the options exercised.
SSC Atlantic has some specific technological requirements for which pillar contracts are required. The scope of the contract requires URS to win/compete for orders for providing Business Technology, Network and Cyber Security Support Services to the U.S. Navy.
Besides these, URS was also awarded the subcontract as a teaming partner on 10 small-business pillar awards and a couple of full and open pillar awards for supporting SSC Atlantic in other core services. These diverse services include transport infrastructure, computing and decision making support along with production, installation and in-service. URS will also provide support for battlespace awareness and data protection of critical importance for the Navy.
URS has a rich experience in supporting Army and Navy departments of U.S. for major engineering and construction projects. In July, it had also received an $800 million ID/IQ contract from the Naval Facilities Engineering Command, Atlantic, to accomplish global contingency construction projects worldwide.
URS currently has a Zacks Rank #3 (Hold). Better stocks within the industry that warrant a look includes Fluor Corp. (FLR), KBR, Inc. (KBR) and Pernix Group Inc. (PRXG). All three stocks carry a Zacks Rank #2 (Buy).