Jacobs Appointed to UK's United Utilities Strategic Solutions Framework until 2035

Rhea-AI Summary

Jacobs (J) has been chosen by United Utilities to optimize asset investment programs, supporting water infrastructure resilience in North West England. The $211 million agreement spans six years with a five-year extension option, focusing on program and asset optimization, value engineering, and innovation.

Insights

Financial Analyst

The announcement of Jacobs' selection by United Utilities to its Strategic Solutions Team (SST) is significant for stakeholders, as it directly pertains to a substantial contract valued at approximately $211 million. This figure, spread over a six-year base contract period with a potential five-year extension, represents a predictable and stable revenue stream for Jacobs. The focus on program and asset optimization in the water infrastructure sector is a strategic move, considering the essential nature of water services and the increasing global emphasis on sustainable practices.

From an investment perspective, the contract could enhance Jacobs' earnings visibility and potentially improve its competitive positioning within the infrastructure management industry. The long-term nature of the agreement also suggests a degree of confidence from United Utilities in Jacobs' capabilities, which may bode well for future contract wins and renewals. It's important to note, however, that the actual impact on Jacobs' financials will depend on the execution of the contract and the company's ability to manage costs effectively while delivering on the promised innovations and efficiencies.

Environmental Consultant

The emphasis on lowest carbon and cost solutions in Jacobs' contract with United Utilities reflects a growing trend in the utility industry towards environmental sustainability. Jacobs' role in driving innovation and standardization across United Utilities' asset base is critical in an industry facing stringent regulatory pressures and a societal push for greener practices. The integration of digital engineering and AI-driven predictive analytics, such as the Aqua DNA solution, highlights an industry shift towards more proactive and technologically advanced asset management strategies.

While this contract is a positive development for both Jacobs and United Utilities, the broader environmental implications are equally noteworthy. By optimizing water infrastructure resilience and performance, there is potential for both reduced environmental impact and improved service delivery. However, the success of these initiatives will hinge on Jacobs' ability to translate innovative concepts into tangible outcomes that align with environmental goals.

Market Research Analyst

Jacobs' continued partnership with United Utilities, extending over two decades, indicates a strong client-provider relationship, which can be a significant differentiator in the professional services industry. The ability to secure repeat business, particularly in a sector as specialized as water services, suggests a high level of customer satisfaction and a deep understanding of the unique challenges faced by United Utilities.

As Jacobs undertakes this new phase of collaboration, the market will be observing how this partnership influences the company's market share and positioning within the water services sector. The integration of innovative solutions like Aqua DNA could potentially set new industry standards and enhance Jacobs' reputation as a leader in digital transformation. However, the market will also be looking for evidence of these strategies translating into improved financial performance over the duration of the AMP8 and AMP9 periods.

Framework to help optimize future asset investment programs

Supports the management of water infrastructure resilience in North West England

DALLAS, March 18, 2024 /PRNewswire/ -- Jacobs (NYSE: J) has been selected by United Utilities, one of the U.K.'s largest listed water companies, to its Strategic Solutions Team (SST) to support program optimization for major capital works through the asset management period (AMP8), which runs from 2025 to 2030, and asset management period 9 (AMP9) which runs from 2030 to 2035.

Working with United Utilities and its construction delivery partners, Jacobs will drive program and asset optimization, value engineering, innovation and standardization across the water company's existing and new asset base – developing efficient, integrated solutions and recommending preferred options based on best value, lowest carbon and cost. Jacobs' technical services will range from feasibility and value management studies, commercial modeling, business case development, design and digital engineering, to whole life cost, best value assessments and more.

United Utilities values the total framework agreement at approximately $211 million over the base contract period of six years with a five-year extension option.

"This appointment extends our long-term relationship with United Utilities to more than 20 years, reinforcing our position as their trusted advisor," said Jacobs Senior Vice President Kate Kenny. "Taking a program level, holistic approach to asset base optimization is critical to challenging norms and devising strategic water solutions to deliver customer and environmental benefits in the North West of England."

United Utilities provides water and wastewater services to around seven million people in the North West of England supplying three million households and 200,000 business premises.

Jacobs has supported United Utilities on the current engineering services framework for the past 10 years, providing a wide range of services from strategic studies and business planning through to asset optimization, project and program management – working together to ensure the resilience of critical assets such as the Haweswater Aqueduct. United Utilities implemented a Dynamic Network Management approach, powered by Jacobs' Aqua DNA—a Digital OneWater solution that collects live data and enhances wastewater network performance using smart sensors and AI-driven predictive analytics—to proactively address challenges and prevent issues. Jacobs has also supported United Utilities with successful submissions in Ofwat's (the Water Services Regulation Authority for England and Wales) past and most recent innovation competition, Water Breakthrough Challenge 3.  

At Jacobs, we're challenging today to reinvent tomorrow by solving the world's most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing, turning abstract ideas into realities that transform the world for good. With approximately $16 billion in annual revenue and a talent force of more than 60,000, Jacobs provides a full spectrum of professional services including consulting, technical, scientific and project delivery for the government and private sector. Visit jacobs.com and connect with Jacobs on Facebook, Instagram, LinkedIn and X.

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, our plans to spin off and merge with Amentum our Critical Missions Solutions  business and a portion of our Divergent Solutions business in a proposed transaction that is intended to be tax-free to stockholders for U.S. federal income tax purposes, 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, geopolitical events and conflicts, 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.

For press/media inquiries:
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SOURCE Jacobs

FAQ

What company was selected by United Utilities for asset management optimization in North West England?

Jacobs (J) was chosen by United Utilities for asset management optimization in North West England.

What is the total value of the framework agreement between Jacobs and United Utilities?

The total value of the framework agreement between Jacobs and United Utilities is approximately $211 million over six years with a five-year extension option.

What services will Jacobs provide to United Utilities under the agreement?

Jacobs will provide services including feasibility studies, value management, commercial modeling, design, digital engineering, and more to United Utilities under the agreement.

How long has Jacobs been supporting United Utilities on the current engineering services framework?

Jacobs has been supporting United Utilities on the current engineering services framework for the past 10 years.

What innovative solution did United Utilities implement with Jacobs' support to enhance wastewater network performance?

United Utilities implemented a Dynamic Network Management approach powered by Jacobs' Aqua DNA solution to enhance wastewater network performance.