Jacobs Secures Environmental Services Contract with US Air Force

Rhea-AI Summary

Jacobs (NYSE: J) has secured a significant environmental services contract with the U.S. Air Force Civil Engineer Center (AFCEC). The contract, valued at $1.5 billion, involves delivering architecture and engineering services globally through an indefinite delivery indefinite quantity (IDIQ) multiple award task order contract.

The agreement spans a five-year base period with one five-year option period, focusing on environmental restoration, conservation, planning, and quality. Services include planning, investigation, assessment, design, construction phase design, and field inspection for the U.S. Air Force and other federal agencies.

Notably, Jacobs ranks No. 1 in Sanitary & Storm Sewers, Sewer & Waste and Wastewater Treatment, and No. 2 in Chemical & Soil Remediation and Site Assessment & Compliance according to Engineering News Record in 2024. The company generates approximately $12 billion in annual revenue with a workforce of almost 45,000 employees.

Positive

• Secured $1.5 billion AFCEC environmental services contract
• 10-year potential contract duration (5-year base + 5-year option)
• #1 ranking in multiple environmental service categories
• $12 billion annual revenue with 45,000 employees

Negative

• None.

Insights

Government Contracting Specialist

Jacobs securing this $1.5 billion IDIQ contract with the U.S. Air Force represents a strategic win that reinforces their longstanding relationship with defense agencies. The contract structure—featuring a five-year base with a five-year option—provides excellent revenue visibility through potentially 2035.

What's particularly valuable is the IDIQ MATOC structure. While the $1.5 billion represents a ceiling rather than guaranteed revenue, this vehicle positions Jacobs to secure ongoing task orders without repeating the full competitive bidding process. This efficient contracting mechanism typically results in consistent work streams once established.

Contextually, this award should generate approximately $150 million annually if fully utilized—representing about 1.25% of Jacobs' $12 billion revenue. While not transformative to their top line, the higher margins typically associated with environmental services make this financially attractive.

The win demonstrates Jacobs' continued competitiveness in federal contracting despite recent portfolio reshaping, following their spin-off of defense-focused Critical Missions Solutions to Amentum. That they've maintained environmental services leadership through this transition signals effective strategic execution.

Moreover, this award builds on existing environmental contracts with NAVFAC, NASA, and EPA, creating valuable cross-agency synergies that often lead to additional opportunities through reputation and capabilities transfer.

Environmental Services Analyst

This AFCEC contract solidifies Jacobs' position as a dominant player in the environmental services sector where they hold the #1 ranking in Sanitary & Storm Sewers, Sewer & Waste, and Wastewater Treatment according to Engineering News Record. Their #2 position in Chemical & Soil Remediation aligns perfectly with the environmental restoration components of this Air Force contract.

The comprehensive scope—spanning environmental restoration, conservation, planning, and quality services—showcases Jacobs' full-spectrum capabilities. This breadth allows them to capture diverse work streams from a single contract vehicle.

What's particularly significant is how this award enhances Jacobs' credentials in the federal environmental compliance market, which features long project lifecycles and stable funding. Their 20+ year involvement in the Velsicol superfund site demonstrates their expertise in managing complex, long-duration environmental projects—precisely the experience needed for this Air Force work.

The timing is advantageous as environmental remediation remains a high-priority spending area for federal agencies, relatively insulated from potential budget pressures. Their involvement in major initiatives like restoring 22 of 25 Great Lakes Areas of Concern positions them to benefit from increasing federal environmental restoration priorities.

This contract reinforces Jacobs' strategic emphasis on their environmental business as a core growth driver following their recent restructuring. For investors, it represents continuity in their highest-margin service sectors with minimal capital expenditure requirements, potentially supporting strong cash flow generation.

Multi-year award supports environmental compliance and restoration efforts for US Air Force installations and federal agencies globally

DALLAS, April 16, 2025 /PRNewswire/ -- Jacobs (NYSE: J) was selected by the U.S. Air Force Civil Engineer Center (AFCEC) to deliver architecture and engineering globally through an indefinite delivery indefinite quantity (IDIQ), multiple award task order contract (MATOC) to support environmental restoration, environmental conservation, planning and environmental quality.

Under this contract, Jacobs will provide comprehensive environmental services to the U.S. Air Force, Air Force Material Command, Air Force Installation and Mission Support Centre, AFCEC and other Department of Defense and federal agencies. Support will include planning, investigation, assessment, design, construction phase design and field inspection.  

"Jacobs has provided critical infrastructure and associated architecture and engineering services across all end markets to the U.S. Air Force for more than 20 years," said Jacobs Executive Vice President Susannah Kerr. "This contract is one example of how national security isn't just about what happens inside a base—it encompasses a holistic perspective that includes the resilience of critical infrastructure such as cyber networks, water systems, energy grids and the environmental landscape."

The U.S. Air Force and the AFCEC environmental program value the anticipated contract ceiling at $1.5 billion. Jacobs will provide services under a five-year base period and one five-year option period. 

Jacobs also supports other U.S. federal organizations with environmental compliance, remediation, regeneration and associated critical infrastructure and program management solutions. These include working with the Naval Facilities Engineering Systems Command (NAVFAC) Atlantic under a single-award IDIQ to provide multimedia environmental compliance engineering in the eastern half of the U.S., Europe, Africa and the Middle East, and working with the National Aeronautics and Space Administration (NASA) to restore multiple installations through environmental engineering. Jacobs has worked with the U.S. Environmental Protection Agency at the Velsicol superfund site for more than 20 years, restoring health and safety to residents and wildlife habitats along Pine River, Michigan, and more recently aiding in efforts to clean up and restore 22 of the 25 remaining Great Lakes Areas of Concern by 2030.

Jacobs is ranked No. 1 in Sanitary & Storm Sewers, Sewer & Waste and Wastewater Treatment, and No. 2 in Chemical & Soil Remediation and Site Assessment & Compliance by Engineering News Record in 2024. Jacobs has also been ranked the No. 2 global environmental and sustainability consultancy in the Environment Analyst's latest Environmental & Sustainability Consulting Market Assessment from the 2023 fiscal year.

At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With approximately $12 billion in annual revenue and a team of almost 45,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we're creating a more connected and sustainable world. See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook. 

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, uncertainties as to the impact of the recently completed separation transaction pursuant to which we spun off and merged our Critical Missions Solutions and Cyber & Intelligence government services businesses with Amentum (together, "new Amentum ") on Jacobs' and new Amentum's businesses, 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, increased uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, among others, 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, 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 Jacobs' (NYSE: J) new Air Force environmental services contract?

The contract has an anticipated ceiling value of $1.5 billion.

How long is the duration of Jacobs' (J) AFCEC contract?

The contract includes a five-year base period plus one five-year option period.

What services will Jacobs (J) provide under the AFCEC environmental contract?

Jacobs will provide environmental restoration, conservation, planning, investigation, assessment, design, and field inspection services.

What are Jacobs' (J) current industry rankings in environmental services?

Jacobs ranks #1 in Sanitary & Storm Sewers and Wastewater Treatment, and #2 in Chemical & Soil Remediation and Site Assessment & Compliance per Engineering News Record 2024.