Jacobs to Provide Highways & Environmental Services to Hertfordshire County Council

Rhea-AI Summary

Jacobs (NYSE:J) has been selected by Hertfordshire County Council to provide comprehensive highways and environmental services aimed at upgrading the public highways network in Hertfordshire, UK. The collaboration, starting in October 2024 with an initial five-year term and possible extensions up to 14 years, is valued at $22 million (£17 million) per year. The project involves program and asset management, focusing on sustainability and social equity, with PA Consulting, Tetra Tech, Tony Gee, and Brightly as key partners. Jacobs aims to bolster local economy, skills, and jobs, ultimately benefiting over a million residents. The project underscores Jacobs' commitment to innovative, resilient infrastructure solutions.

Positive

• Jacobs secured a significant contract worth $22 million (£17 million) annually.
• Initial contract duration is five years with potential extensions up to 14 years.
• Collaboration with reputable partners like PA Consulting, Tetra Tech, Tony Gee, and Brightly.
• Focus on sustainability and social value objectives aligns with modern environmental and social governance (ESG) standards.
• Project supports the local economy, small/medium enterprises, and job creation in Hertfordshire.
• Jacobs' expertise in program and asset management will enhance the public highways network.
• The collaboration aims to create resilient and effective services for over a million residents.
• Strengthens Jacobs' position as a leading service provider to UK Local Government Authorities.
• Enhances Jacobs' portfolio of innovative and sustainable infrastructure solutions.

Negative

• The contract's potential extension to 14 years could impose long-term commitments and risks.
• Significant dependence on collaboration with multiple partners may introduce coordination challenges.
• Initial investment of $22 million (£17 million) per year could impact short-term financials.
• No immediate financial gains; benefits are expected to accrue over the long term.

Insights

Infrastructure Analyst

The contract awarded to Jacobs by Hertfordshire County Council is significant for both parties. For Jacobs, this deal underscores their role as a major player in infrastructure management and their ability to secure long-term contracts with government entities. Jacobs' collaboration with PA Consulting and other local sub-consultants like Tetra Tech and Tony Gee further strengthens their commitment to delivering innovative and sustainable infrastructure solutions. This project aligns with the ongoing trend of integrating sustainability into infrastructure, which is increasingly important for both public acceptance and regulatory compliance.

From a financial perspective, this contract brings a steady revenue stream estimated at $22 million (£17 million) per annum for up to 14 years, which can significantly contribute to Jacobs' overall revenue stability and growth. The focus on sustainability and social value also positions Jacobs favorably for future projects, as governments and municipalities are increasingly prioritizing these aspects in their contracts.

Investors should consider the long-term benefits of this contract, including the potential for additional projects and revenue. However, it’s also important to assess any risks associated with the dependence on government contracts and the potential for changes in political priorities.

Environmental Impact Analyst

This project has a clear emphasis on sustainability and environmental stewardship, which aligns with broader global trends towards greener infrastructure. Jacobs’ role in delivering these solutions, alongside PA Consulting’s innovation capabilities, suggests a strong commitment to environmentally friendly practices. This includes potential reductions in carbon emissions, improvements in local air quality and the promotion of social equity through job creation and skills development in the local community.

The integration of sustainability into highway and infrastructure projects can lead to long-term environmental benefits and may also provide Jacobs with a competitive advantage in securing similar contracts in the future. For investors, these environmental commitments can signal lower risks associated with regulatory compliance and public support, which are increasingly critical factors in infrastructure projects.

However, the practical implementation of these sustainable practices will need to be closely monitored to ensure their effectiveness and to evaluate the real-world impact of Jacobs' initiatives.

Innovative and sustainable solutions to upgrade highways network in the United Kingdom

Supports vision to enhance economy, environmental stewardship and social equity

DALLAS, May 23, 2024 /PRNewswire/ -- Jacobs (NYSE:J) has been appointed by Hertfordshire County Council to provide multi-discipline and flexible highways and environmental professional services to advance the public highways network in Hertfordshire, U.K.

Working collaboratively with Hertfordshire County Council and its supply chain, Jacobs will provide program and asset management, and technical support to the highway and environmental service – to protect and maximize value from Hertfordshire County Council's $10 billion (£8 billion) highway, structures and environmental assets.

The Jacobs-led team includes a strategic partnership with PA Consulting as embedded innovation and transformation partner. PA Consulting's Global Innovation and Technology Centre in Royston, Hertfordshire will be a creative center from which to help create the future of local transport and highway services. Additionally, the team includes sub consultants Tetra Tech, Tony Gee and Brightly, a Siemens company. This integrated, locally-driven team will deliver enduring outcomes for the Hertfordshire community with a specific focus on sustainability and social value objectives.

Hertfordshire County Council expects the contract to commence in October for an initial five years followed by optional extension periods to a maximum of 14 years, with an estimated contract value of $22 million (£17 million) per annum.

"We are developing a collaborative innovation culture with Hertfordshire County Council that will evolve services to meet ambitions for a cleaner, healthier Hertfordshire and grow local small/medium enterprises, suppliers, skills and jobs," said Jacobs Senior Vice President Kate Kenny. "Our program management capability and tools, combined with our global specialists and data solutions ultimately benefit the county's residents and businesses creating more resilient and effective services for more than a million people who live and work in Hertfordshire."

"Following much hard work and a competitive procurement process, I am pleased to announce our collaboration with Jacobs. I look forward to many years of close co-operation as we continue working to protect, repair and enhance our highways network," said Hertfordshire County Councilor and Executive Member for Highways Phil Bibby. "Our roads are the arteries that connect our people and communities across the county and I am confident that working together with Jacobs we have the right people and plans in place to deliver for Hertfordshire."

Ranked No.1 in Program Management by Engineering News-Record and as one of the largest service providers to U.K. Local Government Authorities, Jacobs helps plan, develop, finance, design, deliver and maintain world-class infrastructure solutions that connect people and communities.

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 Jacobs press/media inquiries:
E: media@jacobs.com    

 

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SOURCE Jacobs

FAQ

What is the value of the contract Jacobs secured with Hertfordshire County Council?

The contract is valued at $22 million (£17 million) per annum.

When will Jacobs' contract with Hertfordshire County Council commence?

The contract is expected to commence in October 2024.

How long is the initial term of Jacobs' contract with Hertfordshire County Council?

The initial term of the contract is five years.

What is the maximum duration of Jacobs' contract with Hertfordshire County Council if all extensions are utilized?

The maximum duration of the contract is 14 years.

Which partners are involved in Jacobs' project with Hertfordshire County Council?

Partners include PA Consulting, Tetra Tech, Tony Gee, and Brightly.

What are the key objectives of Jacobs' project with Hertfordshire County Council?

Key objectives include upgrading the public highways network, enhancing sustainability, and creating social value.

How will Jacobs' project benefit Hertfordshire's local economy?

The project will support local small/medium enterprises, create jobs, and boost local skills.

How many residents will benefit from Jacobs' project in Hertfordshire?

Over a million residents will benefit from the project.