Jacobs Selected to Deliver Program Services for LAWA's Capital Improvement Program

Rhea-AI Summary

Jacobs (NYSE: J) has been selected by Los Angeles World Airports (LAWA) as one of 15 lead consultants for its Capital Improvement Program. This task order-based professional services contract is the largest of its kind in LA's history and focuses on modernization projects at Los Angeles International Airport (LAX) and Van Nuys Airport (VNY). The contract emphasizes inclusivity, engaging over 30 small, diverse business partners. Jacobs' involvement aims to enhance the city's infrastructure in preparation for upcoming sporting events.

Positive

• Jacobs secured a major contract with LAWA, enhancing their market position.
• Contract focuses on modernizing key LA airports, potentially increasing Jacobs' revenue.
• Involvement of over 30 small, diverse businesses supports Jacobs' commitment to inclusivity.
• Contract aligns with LAWA's record-breaking inclusivity efforts, enhancing Jacobs' reputation.

Negative

• The task order-based nature of the contract may lead to uneven revenue streams.
• Intense competition with 14 other consultants could affect Jacobs' share of the project.
• Potential risks if the inclusivity goals are not met, affecting Jacobs' standing.

Insights

Financial Analyst

Jacobs being selected as one of the 15 lead consultants by Los Angeles World Airports (LAWA) to provide professional services for their Capital Improvement Program (CIP) is a significant development. This deal aligns with Jacobs' strategic focus on expanding its presence in infrastructure and consulting services, supporting its growth trajectory.

Financial Impact: The MATOC (Multiple Award Task Order Contract) structure allows Jacobs to gain on-call revenue, which is more stable and predictable compared to fixed contracts. The association with a high-profile client like LAWA further strengthens Jacobs' market position, potentially leading to additional contracts in the aviation sector.

This partnership can have a positive impact on Jacobs' financials, providing a stable revenue stream and enhancing its reputation. Investors should watch for updates on specific task orders under this contract, which will provide more clarity on revenue contribution.

Market Research Analyst

The selection of Jacobs reflects the broader trend of increasing investments in airport infrastructure, driven by rising air traffic and upcoming significant events like the Olympics. The focus on engaging local minority businesses and setting inclusivity records aligns with the current emphasis on corporate social responsibility and diversity.

Market Position: Jacobs has been involved with LAWA since 2016 and this new contract solidifies its standing as a key player in the airport infrastructure market. The involvement of over 30 small diverse business partners not only supports local economies but also presents Jacobs in a positive light concerning community engagement and social impact.

Investors can take this as a positive signal of Jacobs' ability to secure and manage large-scale, impactful projects that reinforce its competitive edge in the market.

DALLAS, May 29, 2024 /PRNewswire/ -- Jacobs (NYSE:J) is one of 15 lead consultants selected by Los Angeles World Airports (LAWA) to provide on-call, task order-based, professional services through a Multiple Award Task Order Contract (MATOC). The work will support initiatives relating to LAWA's Capital Improvement Program and modernizations at Los Angeles International Airport (LAX) and Van Nuys Airport (VNY).  

"Building on our long aviation history, Jacobs will continue collaborating with LAWA to deliver improvements that enrich travel experiences and lay the groundwork for a more connected future," said Jacobs Senior Vice President Katus Watson. "Our teammates work closely with LAWA's planning and development departments in an effort to enhance the city's preparedness for upcoming sporting events, enabling welcoming and efficient experiences for all."

LAWA's program services MATOC is the largest award of its kind in the City of Los Angeles' history, breaking inclusivity records and setting new standards for local, diverse, veteran, small and microbusiness participants. Allied with LAWA's efforts, Jacobs will engage local minority businesses on its respective task orders, including support from more than 30 small diverse business partners, which could provide opportunities for small and disadvantaged business growth for years to come.

Jacobs has provided program management services for LAWA's Capital Improvement Program since 2016, providing asset management, business and financial, project management, construction management, telecommunications and environmental 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.

For press/media inquiries:
media@jacobs.com

 

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SOURCE Jacobs

FAQ

What is Jacobs' role in LAWA's Capital Improvement Program?

Jacobs will provide on-call, task order-based professional services for modernization projects at LAX and VNY airports.

How many consultants were selected for LAWA's Capital Improvement Program?

A total of 15 lead consultants, including Jacobs, were selected.

What makes LAWA's Capital Improvement Program contract significant?

It is the largest award of its kind in Los Angeles' history, emphasizing local, diverse, veteran, small, and microbusiness participation.

How long has Jacobs been involved with LAWA's Capital Improvement Program?

Jacobs has been providing program management services for LAWA since 2016.

What is the stock symbol for Jacobs?

The stock symbol for Jacobs is 'J'.