Jacobs Awarded Environmental Compliance Contract with the US Navy

Rhea-AI Summary

Jacobs (NYSE: J) has secured a five-year, $80 million single-award contract from the Naval Facilities Engineering Systems Command (NAVFAC) Atlantic for environmental compliance engineering support. The contract extends Jacobs' ongoing work with the U.S. Navy's multimedia environmental compliance program, covering operations in the eastern U.S., Europe, Africa, and the Middle East.

The scope includes services for petroleum storage tank compliance, oil spill preparedness, air quality compliance, Safe Drinking Water Act and Clean Water Act compliance, and material and waste management. This renewal builds on Jacobs' 40+ years of support to NAVFAC. The company holds top rankings in relevant Engineering News Record categories, including #1 in Sanitary & Storm Sewers and Wastewater Treatment, and #2 in Chemical & Soil Remediation.

Positive

• Secured $80 million maximum ceiling contract for 5 years
• Contract renewal demonstrates long-term relationship with NAVFAC spanning 40+ years
• Holds #1 ranking in key environmental engineering categories

Negative

• None.

Insights

Government Contracts Analyst

The newly secured $80 million NAVFAC contract represents a strategically significant win for Jacobs, reinforcing their position in the lucrative government environmental services sector. Several key aspects make this contract particularly noteworthy:

Contract Economics & Revenue Stability: The five-year IDIQ structure provides predictable revenue streams and enhances earnings visibility. With a $16 million annual potential, this represents approximately 0.13% of Jacobs' $12 billion annual revenue - while modest in percentage terms, it's valuable for its strategic importance and potential for expansion.

Competitive Advantage & Market Position: Jacobs' industry-leading rankings in key environmental services categories (No. 1 in multiple water management segments) demonstrate their competitive moat in this sector. The contract renewal after 40+ years of service indicates high client satisfaction and deep institutional knowledge, creating significant barriers to entry for competitors.

Growth Catalysts: The global scope covering U.S., Europe, Africa and the Middle East positions Jacobs for potential contract expansions and adjacent opportunities. Their comprehensive service offering in environmental compliance aligns with increasing global environmental regulations and military sustainability initiatives.

Risk Assessment: The contract's diverse geographical and service scope provides natural hedging against regional or sector-specific downturns. The U.S. Navy's stable funding and essential nature of environmental compliance services minimize revenue volatility risks.

Environmental Services Expert

This contract exemplifies the evolving complexity of military environmental compliance and Jacobs' unique positioning to address these challenges. Their comprehensive approach encompasses:

• Advanced petroleum storage and management systems, critical for military readiness and environmental protection
• Integrated water quality management solutions spanning drinking water, stormwater and wastewater
• Sophisticated waste management protocols addressing diverse military operational needs

Jacobs' No. 1 ranking in multiple environmental categories translates to practical advantages in execution efficiency and technological innovation. Their extensive experience with military installations enables streamlined compliance processes while maintaining rigorous environmental standards. This expertise becomes increasingly valuable as environmental regulations become more stringent and complex globally.

Multi-year contract continues environmental compliance program to Navy and Marine Corps operations in the U.S., Europe, Africa and the Middle East.

DALLAS, Jan. 28, 2025 /PRNewswire/ -- Jacobs (NYSE: J) was selected by the Naval Facilities Engineering Systems Command (NAVFAC) Atlantic, for a single-award, indefinite delivery, indefinite quantity contract to provide multimedia environmental compliance engineering support to the U.S. Navy and other U.S. Department of Defense installations globally, but primarily in the eastern half of the U.S., Europe, Africa and the Middle East.

The five-year, $80 million maximum ceiling contract continues Jacobs' work for the U.S. Navy's multimedia environmental compliance program. Jacobs will provide environmental services associated with petroleum storage tank and petroleum, oil, and lubricant asset compliance; oil spill preparedness and planning compliance; air quality and Clean Air Act compliance; Safe Drinking Water Act and Clean Water Act compliance (stormwater and wastewater); and material and waste management.

"This multimedia contract renewal continues Jacobs' 40+ years of support to NAVFAC and provides another opportunity to advance the environmental compliance of the U.S. Navy, one of the world's largest maritime operations," said Jacobs Executive Vice President Susannah Kerr. "Supporting NAVFAC with environmental stewardship is integral to enabling the U.S. Navy to focus on their core mission of maintaining freedom of the seas."

Jacobs also supports other divisions of NAVFAC globally, delivering cutting-edge critical infrastructure design, innovative program management, sustainable energy solutions and environmental stewardship. These capabilities deliver resilient, secure environments that help to advance peace and prosperity, and protect nations and communities. Jacobs will continue to draw in the deep expertise and capacity reflected in the No. 1 ranking in Sanitary & Storm Sewers, Sewer & Waste and Wastewater Treatment, and No. 2 in Chemical & Soil Remediation and Site Assessment & Compliance by Engineering News Record in 2024.

At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With approximately $12 billion in annual revenue and a team of almost 45,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we're creating a more connected and sustainable world. See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook. 

Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements including, but not limited to, uncertainties as to the impact of the recently completed separation transaction pursuant to which we spun off and merged our Critical Missions Solutions and Cyber & Intelligence government services businesses with Amentum (together, "new Amentum ") on Jacobs' and new Amentum's businesses, the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation related to governmental spending, as well as general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets, the possibility of a recession or economic downturn, increased uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, among others, and the impact of any future pandemic or infectious disease outbreak, including the related reaction of governments on global and regional market conditions, among others. For a description of some additional factors that may occur that could cause actual results to differ from our forward-looking statements, see the discussions contained under Item 1 - Business; Item 1A - Risk Factors; Item 3 - Legal Proceedings; and Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recently filed Annual Report on Form 10-K, and Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations; Item 1 - Legal Proceedings, as well as the company's other filings with the Securities and Exchange Commission. The company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law.

For press/media inquiries:
media@jacobs.com

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SOURCE Jacobs

FAQ

What is the value and duration of Jacobs' (NYSE: J) new NAVFAC contract?

The contract has a five-year duration with a maximum ceiling value of $80 million.

What services will Jacobs (J) provide under the 2025 NAVFAC contract?

Jacobs will provide environmental compliance services including petroleum storage tank compliance, oil spill preparedness, air quality compliance, water compliance, and material and waste management.

Which geographical regions are covered by Jacobs' (J) NAVFAC environmental contract?

The contract covers installations primarily in the eastern United States, Europe, Africa, and the Middle East.

What are Jacobs' (J) current Engineering News Record rankings in environmental services?

As of 2024, Jacobs ranks #1 in Sanitary & Storm Sewers, Sewer & Waste and Wastewater Treatment, and #2 in Chemical & Soil Remediation and Site Assessment & Compliance.