Tetra Tech Clinches Additional $84M Contract From USAID

Global consulting and engineering services firm Tetra Tech, Inc. (NASDAQ:TTEK) recently announced the receipt of a contract involving additional work worth $84 million on its existing $64 million deal from the United States Agency for International Development (“USAID”).

In Jul 2014, the company received a $64 million contract for providing technical assistance to the Power Africa Transactions and Reform Program which was sponsored by the USAID. This U.S. government-led Power Africa partnership is aimed at speeding up the generation and transmission of sustainable electric power across various African countries.

As per the new extension, Tetra Tech will help Power Africa Transaction develop small-scale clean energy projects to improve access of power in rural areas, support regulatory and institutional policies and offer direct programmatic support to the office. As a matter of fact, the company is working proactively to help complete the delivery of more than 140 active energy transactions that can collectively generate more than 20,000 megawatts ("MW") of power in sub-Saharan Africa.

Launched in 2013 by Barrack Obama, the philanthropic Power Africa program aimed at lighting up homes and work stations in sub-Saharan Africa where every two out of three people are in need of electricity. Going forward, this project aspires to reach electricity access to 60 million consumers, generating 30,000 MW eco-friendly power by 2030, which in turn can further unlock lucrative opportunities for Tetra Tech.

Tetra Tech has a solid reputation of winning lucrative awards that has materially boosted its top line and margin performance. During the second quarter of fiscal 2016, the company secured noteworthy contracts from the US Department of Defense, specifically from the U.S. Navy and the Army. Tetra Tech won governance programs in El Salvador, secured orders from USAID for essential water management services in Jordan, and won funded task orders worth $41 million with the U.S. Department of State and USAID during the second quarter. We believe such significant contract wins will largely propel long-term growth for the company.

Tetra Tech currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Landauer Inc. (NYSE:LDR) , Donaldson Company, Inc. (NYSE:DCI) and US Ecology, Inc. (NASDAQ:ECOL) . While Tetra Tech sports a Zacks Rank #1 (Strong Buy), Donaldson Company and US Ecology hold a Zacks Rank #2 (Buy).