DALLAS - Jacobs (NYSE:J) has been awarded a substantial contract to support the Federal Emergency Management Agency (FEMA) in disaster response and recovery efforts. The company, in partnership with CDM Smith, will continue to provide technical assistance under the Public Assistance Technical Assistance Contract V (PA TAC V), with a focus on hazard mitigation and rebuilding communities and critical infrastructure in the aftermath of disasters.
The contract, which is an indefinite delivery/indefinite quantity (IDIQ) agreement, has an estimated ceiling value of $570.5 million. It includes a one-year base period with up to four additional option years. The work encompasses aiding disaster operations in FEMA Regions 7, 9, and 10, which cover a broad swath of the United States from the Midwest to the Pacific Islands.
Jacobs and CDM Smith have been collaborating as joint venture partners since 2012, supporting FEMA through previous contract iterations. Their work has included public assistance, recovery operations, construction management, and technical services, with the joint venture previously awarded over $951 million.
Susannah Kerr, Jacobs Senior Vice President, emphasized the company's long-standing commitment to delivering public assistance to communities in need, particularly underserved areas. Timothy S. Hillier from CDM Smith expressed gratitude for the continued trust from FEMA and the opportunity to offer technical skills and assistance during major emergencies and disasters.
The Public Assistance program is designed to provide federal disaster grant assistance for debris removal, emergency protective measures, and the repair or restoration of publicly owned facilities and certain private non-profit organizations. Jacobs also advises FEMA on sustainable, resilient practices to safeguard facilities against future disasters.
Jacobs, a company with a reported annual revenue of around $16 billion and a workforce exceeding 60,000, offers a range of professional services across various sectors, including government and private sector consulting, technical, scientific, and project delivery.
The information for this article is based on a press release statement.
InvestingPro Insights
As Jacobs (NYSE:J) secures its latest contract with FEMA, the company's financial health and market performance remain a point of interest for investors. According to InvestingPro data, Jacobs has a market capitalization of $18.83 billion, reflecting its substantial presence in the professional services industry. With a P/E ratio of 26.61 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 21.97, the company trades at a premium relative to its near-term earnings growth. Despite this premium valuation, Jacobs has demonstrated solid revenue growth of 8.94% over the last twelve months as of Q1 2024, a testament to its consistent performance and ability to secure lucrative contracts.
An InvestingPro Tip points out that Jacobs has raised its dividend for five consecutive years, showcasing its commitment to returning value to shareholders. Furthermore, the company has had a strong return over the last three months, with a price total return of 18.78%. This is indicative of investor confidence and the company's robust operational strategies. For those considering an investment in Jacobs, there are 9 additional InvestingPro Tips available, which can be accessed through InvestingPro's dedicated page for the company at https://www.investing.com/pro/J. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With analysts predicting that Jacobs will be profitable this year, the company's strategic partnership with CDM Smith and its ongoing support for FEMA's disaster response initiatives are likely to continue contributing to its financial and operational success.
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