Jacobs Awarded FBI Information Technology Supplies and Support Services Contract

Rhea-AI Summary

Jacobs (NYSE:J) has been awarded the FBI Information Technology Supplies and Support Services 2nd Generation (ITSSS-2) Blanket Purchase Agreement (BPA). This competitive contract, with an $8 billion total ceiling value over eight years, will provide critical IT support to the FBI and the broader Department of Justice. Jacobs will deliver solutions in seven key areas: workplace services, business applications, delivery services, platform services, infrastructure services, emerging technologies, and other IT services.

This award builds on Jacobs' nearly two-decade-long collaboration with the FBI, reinforcing its position as a trusted provider of innovative IT solutions. The contract underscores Jacobs' commitment to enhancing the FBI's mission-critical operations through cutting-edge technologies.

Positive

• Awarded $8 billion ceiling value FBI IT contract
• Contract extends over 8 years
• Expands 20-year collaboration with FBI
• Provides services to broader Department of Justice
• Covers 7 key IT service areas

Negative

• None.

Financial Analyst

Jacobs' new ITSSS-2 contract with the FBI is a significant win, particularly when you consider the $8 billion total ceiling over eight years. This contract assures a steady revenue stream from a reputable client, which is a substantial positive for Jacobs' financial health. Investors should note that such government contracts are often stable, with low risk of default.

Furthermore, the overlapping availability to the Department of Justice extends the potential client base, possibly increasing revenue opportunities. This diversification can help mitigate risks associated with reliance on a single client.

From a financial perspective, this long-term contract strengthens Jacobs' revenue visibility and could potentially lead to a rerating of the stock. The commitment to innovative IT solutions also enhances Jacobs' market positioning as a leading provider of advanced technological services.

Tech Expert

The seven key areas mentioned in the contract—such as platform services and emerging technologies—highlight Jacobs’ capability to deliver advanced IT solutions. These areas are critical for an organization like the FBI, which requires robust and secure IT infrastructure to handle sensitive data.

Jacobs' focus on emerging technologies is particularly noteworthy. With rapid advancements in AI, cybersecurity and data analytics, Jacobs is well-positioned to provide cutting-edge solutions that can significantly enhance the FBI's operational efficiency and security measures.

This contract will likely involve deploying advanced security protocols and innovative data solutions, reinforcing Jacobs' reputation as a tech leader. The potential for future technological advancements can open doors for further contracts and collaborations, adding long-term value to Jacobs’ portfolio.

Market Research Analyst

The awarding of the ITSSS-2 contract to Jacobs not only reaffirms the company’s existing relationship with the FBI but also emphasizes its competitive edge in the IT services market. This contract serves as a strong endorsement of Jacobs' capabilities and its ability to meet the specific needs of high-profile government clients.

The IT services market, especially within government contracts, is highly competitive. Winning a contract with such a high ceiling value ($8 billion) over eight years is a testament to Jacobs' robust proposal and past performance. Investors should see this as a clear indicator of Jacobs' strategic positioning and potential for growth in the government sector.

Additionally, Jacobs’ expansive service offerings—ranging from business applications to emerging technologies—suggests a comprehensive approach that can attract other major clients. The company's ability to adapt and innovate in various IT segments will likely lead to sustained growth and market dominance.

Strengthens government operations by leveraging innovative data and security solutions

DALLAS, July 24, 2024 /PRNewswire/ -- Jacobs (NYSE:J) was awarded the competitive Federal Bureau of Investigation (FBI) Information Technology Supplies and Support Services 2nd Generation (ITSSS-2) Blanket Purchase Agreement (BPA). This agreement, which will also be available to the broader Department of Justice, provides critical IT support to the FBI. The contract highlights Jacobs' nearly two-decade-long collaboration with the FBI, emphasizing its role as a reliable provider of innovative IT solutions.

The FBI expects the ITSSS-2, its primary agreement for essential IT services over the next eight years, to come with an $8 billion total ceiling contract value and flexible options. This agreement underscores Jacobs' dedication to bolstering the FBI's mission-critical operations. Under the multiple-award, indefinite-delivery/indefinite-quantity contract, Jacobs will deliver crucial IT solutions in seven key areas: workplace services, business applications, delivery services, platform services, infrastructure services, emerging technologies and other IT services.

"At Jacobs, we're focused on bringing together the right combination of technologies to solve our clients' most complex challenges," said Jacobs Senior Vice President Gwen Clavon. "Building on our nearly 20 years of collaboration with the FBI, we will continue to deliver cutting-edge solutions that enhance the bureau's capabilities."

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 is the value of the FBI ITSSS-2 contract awarded to Jacobs (NYSE:J)?

The FBI ITSSS-2 contract awarded to Jacobs (NYSE:J) has a total ceiling value of $8 billion.

How long is the duration of the FBI IT contract awarded to Jacobs (NYSE:J)?

The FBI IT contract awarded to Jacobs (NYSE:J) is expected to last for eight years.

What types of IT services will Jacobs (NYSE:J) provide under the FBI ITSSS-2 contract?

Jacobs (NYSE:J) will provide seven key IT service areas: workplace services, business applications, delivery services, platform services, infrastructure services, emerging technologies, and other IT services.

Will other agencies besides the FBI benefit from Jacobs' (NYSE:J) ITSSS-2 contract?

Yes, the contract will also be available to the broader Department of Justice, not just the FBI.