AECOM-led joint venture selected to provide facility support services for the U.S. Navy’s Pacific Region

Rhea-AI Summary

AECOM, a leading infrastructure consulting firm, announced that a joint venture led by them with Akima Support Operations has been selected by the Naval Facilities Engineering Systems Command (NAVFAC) Pacific to provide facility support services under the Global Contingency Services Multiple Award Contract (GCSMAC).

This is AECOM’s third consecutive GCSMAC award, marking 13 years of continued support for NAVFAC facilities worldwide. The contract includes services for natural disasters, humanitarian efforts, and Navy operations, along with maintenance, modernization, environmental, and engineering services.

AECOM has a longstanding relationship with the U.S. Navy, having provided $1.5 billion in services over the past decade. The company aims to leverage its global expertise and rapid deployment capabilities to meet the Navy's needs.

Positive

• AECOM secured its third consecutive GCSMAC award, reflecting strong performance and reliability.
• The contract extends AECOM's support to NAVFAC facilities for 13 years, ensuring long-term revenue.
• Includes diverse services: disaster response, humanitarian aid, Navy operations, maintenance, and modernization.
• Leverages AECOM’s extensive federal disaster recovery capabilities and global contingency expertise.
• AECOM has a 90-year history with the U.S. Navy, providing $1.5 billion in services over the past decade.
• The joint venture brings together experienced program managers and technical specialists.

Negative

• Indefinite-delivery, indefinite-quantity nature of the contract may lead to unpredictable revenue streams.
• Dependence on government contracts may expose AECOM to political and budgetary risks.
• The scope of work includes high-risk areas like disaster response and humanitarian efforts, potentially affecting profit margins.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today announced that an AECOM-led joint venture with Akima Support Operations has been selected by the Naval Facilities Engineering Systems Command (NAVFAC) Pacific to deliver facility support services under the Global Contingency Services Multiple Award Contract (GCSMAC). This is AECOM’s third consecutive GCSMAC award, spanning 13 years of engineering and operations support for NAVFAC facilities throughout the world under this contract.

“We’re proud to build on years of collaboration with the Navy by deploying our extensive federal disaster recovery capabilities to address critical facility needs in the Pacific and worldwide,” said Lara Poloni, AECOM’s president. “Our industry-leading experts, many of whom joined AECOM as veterans, remain dedicated to the Navy’s mission and bring specialized expertise from our previous GCSMAC projects.”

Under this multiple-award, indefinite-delivery, indefinite-quantity contract, the joint venture will provide various services in response to natural disasters, humanitarian efforts, Navy operations and projects worldwide. The scope of work also encompasses supporting the Navy’s facility maintenance and modernization operations, as well as providing incidental environmental and engineering services.

"Our team brings together highly skilled program managers and technical specialists with proven success on complex large-scale federal programs,” said Karl Jensen, executive vice president of AECOM’s National Governments business. “As we continue to advance our Think and Act Globally strategy, our dedicated professionals will leverage our global contingency expertise, which includes rapid deployment of resources as well as facility and infrastructure support.”

AECOM entities have supported the U.S. Navy for more than 90 years, and the Company has delivered approximately $1.5 billion in services worldwide in the past decade. This includes complex programs such as NAVFAC Pacific and Atlantic Comprehensive Long-Term Environmental Action Navy (CLEAN), and numerous planning, architecture, engineering, and environmental services contracts.

About AECOM

AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy, and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical and digital expertise, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $14.4 billion in fiscal year 2023. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.

Forward-Looking Statements

All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; potential government shutdowns or other funding circumstances that may cause governmental agencies to modify, curtail or terminate our contracts; losses under fixed-price contracts; limited control over operations that run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our debt and guarantees; ability to continue payment of dividends; exposure to political and economic risks in different countries, including tariffs, geopolitical events, and conflicts; currency exchange rate and interest fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; managing pension costs; AECOM Capital real estate development projects; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of the sale of our Management Services and self-perform at-risk civil infrastructure, power construction and oil and gas businesses, including the risk that any purchase adjustments from those transactions could be unfavorable and result in any future proceeds owed to us as part of the transactions could be lower than we expect; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240606064439/en/

Media Contact:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

1.213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investor Contact:

Will Gabrielski

Senior Vice President, Finance, Treasurer

1.213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What is the recent contract award received by AECOM?

AECOM, in a joint venture with Akima Support Operations, has been selected by NAVFAC Pacific to provide facility support services under the Global Contingency Services Multiple Award Contract (GCSMAC).

How long has AECOM supported NAVFAC facilities?

AECOM has been supporting NAVFAC facilities worldwide for 13 years under the GCSMAC.

What services will AECOM provide under the new NAVFAC contract?

AECOM will provide facility support services, including disaster response, humanitarian aid, Navy operations support, maintenance, modernization, and environmental and engineering services.

How much has AECOM provided in services to the U.S. Navy over the past decade?

AECOM has delivered approximately $1.5 billion in services to the U.S. Navy over the past decade.

What expertise does AECOM bring to the NAVFAC contract?

AECOM brings extensive federal disaster recovery capabilities, global contingency expertise, and a team of industry-leading program managers and technical specialists.