Jacobs to Continue Supporting One of California's Largest Water Reuse Projects

Rhea-AI Summary

Jacobs (NYSE: J) has been selected by LA Sanitation and Environment as the progressive design-build contractor for the Donald C. Tillman Advanced Water Equalization Basins project. The project includes new basins capable of holding 9.5 million gallons of water to regulate flows to the Advanced Water Purification Facility (AWPF). This is part of Los Angeles' Groundwater Replenishment Project, aimed at increasing recycled water production by 2035. Jacobs is currently supporting design-build contracts valued at up to $740 million at the Donald C. Tillman site, which includes the AWPF, an educational center, electrical upgrades, and primary equalization tanks.

Positive

• Secured major contract for water infrastructure project in Los Angeles
• Part of larger $740 million design-build contracts at Donald C. Tillman site
• Expanding presence in critical California infrastructure projects

Negative

• None.

Insights

Infrastructure Development Analyst

This contract win strengthens Jacobs' position in California's critical water infrastructure sector. The equalization basins project, part of a larger $740 million initiative, represents significant recurring revenue potential and showcases the company's end-to-end capabilities in water management solutions.

The project's strategic importance lies in addressing California's persistent drought challenges through water reuse technology. This aligns with growing infrastructure spending trends focused on climate resilience and sustainable water management. The progressive design-build contract structure typically offers better margin potential compared to traditional contracts.

Jacobs' continued dominance in ENR's Top 50 Program Management Firms ranking and their expanding portfolio of critical infrastructure projects in California indicates strong market positioning. This contract adds to their backlog and supports long-term revenue visibility in the water infrastructure segment.

New equalization basins will regulate flows to advanced water purification facility

Enhances capability to reduce imported water use in drought-stressed region of Los Angeles

DALLAS, Nov. 12, 2024 /PRNewswire/ -- Jacobs (NYSE: J) has been selected by LA Sanitation and Environment (LASAN) as the progressive design-build contractor for the Donald C. Tillman Advanced Water Equalization Basins, another critical part of the City of Los Angeles' long-term plans to increase recycled water production by 2035.

The Donald C. Tillman Advanced Water Purification Facility (AWPF), also being delivered by Jacobs, will depend on a constant, stable flow of primary effluent to produce purified water suitable for reuse through groundwater replenishment. The equalization basins, which can hold up to nine and a half million gallons of water, will regulate variable flows to the AWPF and support the optimal function of the facility's advanced water treatment processes – as part of the Los Angeles Groundwater Replenishment (GWR) Project.

"Managing limited water resources is a critical focus for California communities and for Jacobs," said Jacobs Vice President of Design-Build, Operations Management and Facilities Services Greg Fischer. "Our work with LASAN and the Los Angeles Department of Water and Power on the Groundwater Replenishment Project will help to provide a sustainable and resilient local drinking water supply for Angelinos."

Jacobs will deliver the advanced water equalization basins project under a progressive design-build contract, with responsibility for design, permitting, construction, start-up and commissioning, supported by Kiewit as its lead contracting partner. Jacobs is currently supporting design-build contracts estimated at up to $740 million at the Donald C. Tillman site as part of the GWR project – which includes the state-of-the-art AWPF, an educational learning center, electrical upgrades, and the primary equalization tanks.

Across the state of California, Jacobs has been part of some of the state's largest critical infrastructure projects, such as the Pure Water Project  for Las Virgenes-Triunfo, the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) to establish a statewide hydrogen hub, Los Angeles World Airports Capital Improvement Program, the award-winning Los Angeles Federal Courthouse, the Delta Conveyance Project, the Sixth Street Viaduct Replacement Project and the Port of San Francisco Waterfront Resilience Program. Jacobs was named No.1 for the fourth consecutive year by Engineering News-Record's global Top 50 Program Management Firms list in 2024.

At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With a team of approximately 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) design-build contracts at the Donald C. Tillman site?

Jacobs is supporting design-build contracts estimated at up to $740 million at the Donald C. Tillman site as part of the Groundwater Replenishment project.

What is the capacity of the new water equalization basins Jacobs (NYSE: J) will build in Los Angeles?

The equalization basins will have the capacity to hold up to nine and a half million gallons of water.

What is Jacobs (NYSE: J) role in the Los Angeles water reuse project?

Jacobs is the progressive design-build contractor responsible for design, permitting, construction, start-up and commissioning of the Donald C. Tillman Advanced Water Equalization Basins project.