Jacobs Secures US Army Corps of Engineers Contract for Northwestern US, Alaska and Hawaii

Rhea-AI Summary

Jacobs (NYSE: J) has secured a significant contract from the U.S. Army Corps of Engineers (USACE) Omaha District, valued at $249 million. The contract covers architecture and engineering services for USACE's Northwestern Division locations across the contiguous U.S., Alaska, Hawaii, and outlying areas. The scope includes environmental services, design work, and specialized environmental response activities.

The contract began October 1, 2024, with a five-year duration and a possible two-year extension for task orders. This award adds to Jacobs' impressive 15 USACE selections and contract awards in 2024, with a combined capacity exceeding $2 billion. The company maintains top rankings in Government Office Design, Hazardous Waste, and other environmental categories according to Engineering News-Record in 2024.

Positive

• Secured $249 million USACE contract for environmental and engineering services
• Part of larger $2 billion+ total contract capacity from 15 USACE awards in 2024
• Five-year contract duration with potential two-year extension
• #1 ranking in Government Office Design and Hazardous Waste sectors

Negative

• None.

Insights

Government Contracts Analyst

This $249 million USACE contract win represents significant strategic value for Jacobs, particularly when viewed alongside their 15 other USACE awards in 2024 totaling over $2 billion in contract capacity. The five-year duration with a two-year extension option provides stable, long-term revenue visibility. The scope encompasses critical environmental and engineering services across multiple regions, leveraging Jacobs' top-ranked expertise in government office design and environmental services.

The contract strengthens Jacobs' already robust relationship with USACE and expands their footprint in high-priority federal environmental projects. With annual revenue of $12 billion, this contract represents approximately 2% of yearly revenue, making it a meaningful addition to their backlog. Their consistent success in securing USACE contracts demonstrates strong competitive positioning in the federal sector and validates their technical capabilities.

Environmental Services Analyst

The comprehensive scope of environmental services in this contract aligns perfectly with Jacobs' top-tier rankings in hazardous waste management and environmental remediation. The focus on CERCLA and RCRA studies, along with environmental compliance work, positions them to capitalize on increasing federal spending on environmental cleanup and sustainability initiatives. Their No. 1 ranking in hazardous waste and No. 2 positions in chemical & soil remediation and site assessment showcase their dominant market position in these specialized services.

The geographic coverage spanning the Northwestern US, Alaska and Hawaii presents unique environmental challenges and opportunities, requiring specialized expertise in diverse ecosystems and regulatory frameworks. This broad territorial scope could lead to additional project opportunities and knowledge transfer across regions.

Environmental and facilities design projects will support cleaner, more resilient communities

DALLAS, Dec. 12, 2024 /PRNewswire/ -- Jacobs (NYSE: J) was selected by the Omaha District of the U.S. Army Corps of Engineers (USACE) to deliver architecture and engineering services through a multiple award task order contract to support USACE's Northwestern Division locations throughout the contiguous U.S., Alaska, Hawaii and outlying areas on various environmental projects.

USACE values the total contract capacity at $249 million. Jacobs' scope includes design and specialized environmental services such as comprehensive environmental response, Compensation and Liability Act and Resource Conservation and Recovery Act studies, environmental compliance, National Environmental Policy Act documentation, and services during remedial construction and more.

"Under this new contract, Jacobs continues to support the mission of the Omaha District of the U.S. Army Corps of Engineers and will provide comprehensive environmentally responsive solutions to meet client goals," said Jacobs Senior Vice President Susannah Kerr. "Jacobs' ongoing support of USACE across the globe highlights our continued commitment to working alongside government agencies on national security infrastructure and resiliency to create safer, cleaner and more prosperous communities."

The contract commenced October 1, 2024, with Jacobs providing services during a five-year period with an additional two-year extension for task orders. This contract win for Jacobs builds on 15 USACE selections and/or contract awards in 2024, with a total capacity exceeding $2 billion under all of the selections and contracts.

Jacobs is ranked as No. 1 in Government Office Design, No. 1 in Hazardous Waste, No. 2 in Chemical & Soil Remediation, No. 2 in Site Assessment & Compliance and No. 3 in the Top 200 Environmental Firms 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; and Item 1A - Risk Factors in our most recently filed Quarterly Report on Form 10-Q, 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.

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SOURCE Jacobs

FAQ

What is the value of Jacobs' (NYSE: J) new USACE contract in 2024?

The U.S. Army Corps of Engineers contract awarded to Jacobs is valued at $249 million.

What geographical areas does Jacobs' (J) new USACE contract cover?

The contract covers USACE's Northwestern Division locations throughout the contiguous U.S., Alaska, Hawaii, and outlying areas.

How long is the duration of Jacobs' (J) new USACE contract?

The contract started October 1, 2024, with a five-year period and an additional two-year extension option for task orders.

What is the total value of Jacobs' (J) USACE contracts awarded in 2024?

Jacobs received 15 USACE selections and contract awards in 2024, with a total capacity exceeding $2 billion.

What services will Jacobs (J) provide under the new USACE contract?

Jacobs will provide architecture and engineering services, including environmental response, compliance, NEPA documentation, and services during remedial construction.