Jacobs Selected to Operate and Maintain Jackson, Mississippi, Water Treatment System

Rhea-AI Summary

Jacobs (NYSE:J) has secured a 10-year contract to operate and maintain Jackson, Mississippi's water treatment system through JXN Water. The contract extends their previous short-term O&M agreement that has been serving nearly 180,000 residents. The scope includes managing the O.B. Curtis and J.H. Fewell water treatment plants, groundwater well system, booster stations, and water storage tanks.

Since early 2023, Jacobs has been implementing repairs, upgrades, and process adjustments while supporting capital projects to stabilize the water system. The new contract will focus on comprehensive operation of water treatment facilities, ensuring regulatory compliance, and overseeing JXN Water's capital improvement plan. The company will also work on developing a dedicated workforce to maintain service standards.

Positive

• Secured long-term 10-year contract for water system operations
• Expands service coverage to 180,000 residents
• Builds on existing successful operations since 2023
• Provides comprehensive management of multiple water treatment facilities

Negative

• None.

Insights

Infrastructure and Utilities Analyst

The 10-year Jackson water system contract marks a strategic win for Jacobs in the critical municipal water infrastructure sector. This agreement is particularly significant as it addresses a high-profile water crisis in Mississippi's largest city, demonstrating Jacobs' capability to handle complex infrastructure challenges that other firms avoided.

The contract's value extends beyond immediate revenue implications. It positions Jacobs advantageously in the $48 billion U.S. water utility O&M market, which faces increasing privatization opportunities as municipalities struggle with aging infrastructure and operational challenges. The successful execution of the initial short-term contract, followed by this long-term agreement, showcases Jacobs' competitive advantage in taking on challenging projects that competitors deemed too risky.

Three key factors make this contract particularly valuable:

• It provides stable, long-term revenue with potential for additional capital project work through the oversight of JXN Water's improvement plan
• It strengthens Jacobs' track record in municipal water system turnarounds, potentially leading to similar contracts in other struggling cities
• The contract includes both operational management and capital improvement oversight, allowing Jacobs to capture value across the entire infrastructure lifecycle

The reputational benefits of successfully managing this high-profile system transformation could position Jacobs as the go-to partner for similar municipal water challenges nationwide. This aligns with the company's strategy to expand its water infrastructure portfolio while addressing critical public needs.

Ten-year contract will continue to improve water service in Mississippi's state capitol

DALLAS, Jan. 30, 2025 /PRNewswire/ -- Jacobs (NYSE:J) was selected to operate and maintain the water treatment system in Jackson, Mississippi, by JXN Water, the entity responsible for ensuring reliable water service for citizens in the state's largest city. This contract follows a short-term operations and maintenance (O&M) agreement that provided nearly 180,000 residents in and around Jackson with more reliable drinking water.

Under the new 10-year contract, Jacobs will continue to manage and provide programmatic support and oversight for the O.B. Curtis and J.H. Fewell water treatment plants, along with the groundwater well system, booster stations and water storage tanks.

"Jackson's residents have struggled for years with unreliable treated water quality and supply," said Jacobs Executive Vice President of Design-Build and Operations Management and Facilities Services Greg Fischer. "At Jacobs, we believe everyone should have access to clean water and we understand the great responsibility it is to be trusted with the care of critical water infrastructure. We'll continue working closely with JXN Water to operate the system efficiently and improve quality of life for people through enhanced, reliable water service."

Jacobs has provided initial O&M services under a short-term contract in Jackson since early 2023, implementing repairs, replacements, upgrades and process adjustments to sustain operations while also supporting the planning, design and oversight of capital projects to stabilize the water system.

Building on these successes, Jacobs will continue comprehensive operation of the water treatment facilities, ensuring optimal performance and compliance with regulatory standards. Additionally, Jacobs will provide programmatic design and construction oversight of JXN Water's capital improvement plan ensuring the development of a dedicated workforce to serve customers and maintain high standards of service.

"JXN Water is pleased to have Jacobs as our long-term partner as we work together to ensure Jackson's water system provides water for all, all the time," said JXN Water Interim Third-Party Manager Ted Henifin. "Jacobs has the expertise, experience and passion to make Jackson's water challenges a distant memory. They answered JXN Water's plea when no other firms would take the risk at the beginning of our recovery and Jacobs has now become part of the Jackson community. We are so fortunate to have them committed for the next decade."

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:
media@jacobs.com

 

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SOURCE Jacobs

FAQ

What is the duration and scope of Jacobs' (NYSE:J) new water treatment contract in Jackson, Mississippi?

Jacobs secured a 10-year contract to operate and maintain Jackson's water treatment system, including the O.B. Curtis and J.H. Fewell water treatment plants, groundwater well system, booster stations, and water storage tanks.

How many residents will benefit from Jacobs' (J) water treatment operations in Jackson?

Nearly 180,000 residents in and around Jackson, Mississippi will benefit from Jacobs' water treatment operations.

When did Jacobs (J) begin its initial operations in Jackson's water system?

Jacobs began providing initial operations and maintenance services in Jackson under a short-term contract in early 2023.

What improvements has Jacobs (J) implemented in Jackson's water system since 2023?

Since 2023, Jacobs has implemented repairs, replacements, upgrades, and process adjustments while supporting capital projects to stabilize the water system.