Jacobs Awarded Federal Emergency Management Agency Response and Recovery Contract

Rhea-AI Summary

Jacobs (J) awarded a $570.5 million FEMA contract to support disaster recovery and hazard mitigation in the U.S. The indefinite delivery contract spans multiple regions and emphasizes sustainable practices. Jacobs and CDM Smith JV have a successful track record in supporting FEMA programs.

Insights

Emergency Management Consultant

The announcement of Jacobs being awarded a Public Assistance Technical Assistance Contract V (PA TAC V) by FEMA indicates a significant commitment from the U.S. government towards disaster preparedness and response. This contract is not only a testament to Jacobs' expertise but also underscores the importance of having robust systems in place for when disasters strike. The contract's focus on hazard mitigation, technical evaluation and cost analysis is essential in ensuring that communities have the resilience to withstand and recover from adverse events.

From an emergency management perspective, Jacobs' role in advising on sustainable and resilient practices is critical. This approach aligns with the increasing emphasis on building infrastructure that can endure future disasters, thereby reducing long-term costs and enhancing community safety. The contract's potential value of $570.5 million, with the option for extension, suggests a substantial investment in these services and reflects the growing market for disaster response consulting.

Financial Analyst

The financial implications of the IDIQ contract with an estimated ceiling value of $570.5 million are noteworthy for Jacobs and its shareholders. The contract provides a stable revenue stream over the potential five-year period, which is a positive indicator for the company's financial health and future earnings potential. Given the historical context, where the JV partnership was awarded over $951 million under previous contracts, the new contract can be seen as a continuation of a profitable enterprise.

Investors should note the diversification benefits that such government contracts can provide to Jacobs' portfolio. While the company operates across various sectors, government contracts like these are typically less sensitive to economic downturns, providing a buffer during periods of market volatility. However, investors should also be aware of the risks associated with government contracting, including regulatory changes and shifts in political priorities that can affect contract renewals and funding levels.

Infrastructure Analyst

From an infrastructure analysis standpoint, the contract underscores a growing trend towards investing in disaster-resilient infrastructure. Jacobs' involvement in the repair, replacement and restoration of disaster-damaged facilities indicates a proactive approach to infrastructure management. The emphasis on sustainability and resilience in Jacobs' advisory role to FEMA is aligned with global trends in infrastructure development, where there is an increasing focus on climate change adaptation and sustainable practices.

The geographical coverage of the contract, spanning multiple FEMA regions, demonstrates the scale at which Jacobs operates and the breadth of its expertise. This regional focus also highlights the varying infrastructure needs across different parts of the country, each with its unique environmental challenges. Jacobs' experience in these diverse settings can provide valuable insights into the standardization of resilience measures across the nation's infrastructure.

Supporting mission critical disaster response and sustained national preparedness

DALLAS, April 4, 2024 /PRNewswire/ -- Jacobs (NYSE:J), the managing partner for a joint venture (JV) between Jacobs and CDM Smith, was awarded a Public Assistance Technical Assistance Contract V (PA TAC V) for continued support of the U.S. Department of Homeland Security's Federal Emergency Management Agency's (FEMA) mission. Through site inspection, field support, technical evaluation and cost analysis, Jacobs will continue to provide hazard mitigation strategies to re-build communities and critical infrastructure following disasters in the West Zone Regions.

The Public Assistance program provides supplemental federal disaster grant assistance for debris removal, emergency protective measures and the repair, replacement and restoration of disaster-damaged, publicly owned facilities and selective private non-profit organizations. Jacobs also advises FEMA on use of sustainable, resilient practices that protect facilities from future events. 

"For more than 20 years, Jacobs has deployed hundreds of local technical specialists to deliver public assistance to underserved communities in times of disaster," said Jacobs Senior Vice President Susannah Kerr. "Our FEMA work is a great example of Jacobs' commitment to supporting governments around the world with innovative offerings that allow them to be mission ready and enhance the health, wellbeing and longevity of their communities." 

CDM Smith Senior Vice President Timothy S. Hillier said, "We are grateful that FEMA has awarded us the FEMA PA TAC V contract and continues to entrust us for over 20 years to support this critical mission." He added, "We are determined to offer the best technical skills and assistance to FEMA's Public Assistance activities in major disasters and emergencies. Our team has a long track record of successfully providing disaster recovery services in the United States and its territories, and we are committed to continuing this important work under the PA TAC V contract."

The indefinite delivery/indefinite quantity (IDIQ) contract, which has an estimated ceiling value of $570.5 million, has a one-year base contract period and up to four individual option years. Work includes supporting disaster operations in FEMA Region 7: Iowa, Kansas, Missouri, Nebraska; Region 9: Arizona, California, Hawaii, Nevada, Pacific Islands; and Region 10: Alaska, Idaho, Oregon, Washington.

Jacobs and CDM Smith have served as JV partners since 2012, supporting several FEMA programs under the previous Public Assistance Technical Assistance Contracts III and IV contract vehicles. Under previous contracts, the JV was awarded more than $951 million to provide public assistance, recovery operations, construction and project management and technical services.

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.

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SOURCE Jacobs

FAQ

What contract was Jacobs (J) awarded recently?

Jacobs (J) was awarded a Public Assistance Technical Assistance Contract V (PA TAC V) by FEMA.

What is the estimated value of the contract awarded to Jacobs (J)?

The contract has an estimated ceiling value of $570.5 million.

Which regions will Jacobs (J) be supporting under the contract?

Jacobs (J) will be supporting disaster operations in FEMA Region 7, 9, and 10.

How long is the contract period for the FEMA contract awarded to Jacobs (J)?

The contract has a one-year base contract period and up to four individual option years.

What kind of services will Jacobs (J) provide under the FEMA contract?

Jacobs (J) will provide site inspection, field support, technical evaluation, cost analysis, and hazard mitigation strategies for disaster recovery.