Tetra Tech Selected for $5 Billion USAID Governance and Stabilization Multiple-Award Contract

Rhea-AI Summary

Tetra Tech (NASDAQ: TTEK) has been awarded a $5 billion multiple-award IDIQ contract by USAID to support global democracy initiatives. The 10-year contract, through USAID's Office of Transition Initiatives, focuses on addressing governance and resiliency challenges in developing countries. Tetra Tech will work on strengthening local engagement, revitalizing critical infrastructure, and enhancing essential public services, including clean water supplies, using evidence-based approaches.

Positive

• Secured a major $5 billion USAID contract
• Long-term revenue visibility with 10-year contract duration
• Expands company's presence in government contracting sector

Negative

• Multiple-award contract structure means revenue not guaranteed
• Contract value shared among multiple awardees

Insights

Government Contracts Analyst

This $5 billion USAID contract win represents a significant opportunity for Tetra Tech, marking a major expansion of their international development portfolio. The 10-year IDIQ structure provides stable, long-term revenue potential, though actual task orders will be competed among multiple awardees. The focus on governance and infrastructure projects aligns perfectly with TTEK's core competencies in water and sustainable infrastructure consulting. With a $13 billion market cap, this contract's total ceiling represents about 38% of their current market value, though actual revenue will depend on task order wins. The continuation of their 40+ year relationship with USAID demonstrates strong competitive positioning in federal contracting. This award strengthens TTEK's already robust government services backlog and provides enhanced visibility into future revenue streams.

PASADENA, Calif.--(BUSINESS WIRE)-- Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment, and sustainable infrastructure, announced today that the U.S. Agency for International Development (USAID) has selected the Company for a $5 billion, multiple-award indefinite delivery, indefinite quantity (IDIQ) contract to support global democracy initiatives.

Under the 10-year contract, Tetra Tech will support USAID’s Office of Transition Initiatives to address complex governance and resiliency challenges in developing countries around the world. Our technical experts will leverage evidence-based approaches to strengthen local engagement, revitalize critical infrastructure, and enhance the access and resiliency of essential public services such as clean water supplies.

“For more than four decades Tetra Tech has supported USAID to strengthen local governance systems for communities in developing countries,” said Dan Batrack, Tetra Tech Chairman and CEO. “We are pleased to continue supporting USAID in their mission to foster strong democracies around the world.”

About Tetra Tech

Tetra Tech is the leader in water, environment and sustainable infrastructure, providing high-end consulting and engineering services for projects worldwide. With 28,000 employees working together, Tetra Tech provides clear solutions to complex problems by Leading with Science^® to address the entire water cycle, protect and restore the environment, design sustainable and resilient infrastructure, and support the clean energy transition. For more information about Tetra Tech, please visit tetratech.com or follow us on LinkedIn and Facebook.

Any statements made in this release that are not based on historical fact are forward-looking statements. Any forward-looking statements made in this release represent management’s best judgment as to what may occur in the future. However, Tetra Tech’s actual outcome and results are not guaranteed and are subject to certain risks, uncertainties and assumptions ("Future Factors"), and may differ materially from what is expressed. For a description of Future Factors that could cause actual results to differ materially from such forward-looking statements, see the discussion under the section "Risk Factors" included in the Company’s Form 10-K and Form 10-Q filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241028227350/en/

Jim Wu, Investor Relations

Charlie MacPherson, Media & Public Relations

(626) 470-2844

Source: Tetra Tech, Inc.

FAQ

What is the value of USAID's new contract awarded to Tetra Tech (TTEK)?

The USAID contract awarded to Tetra Tech (TTEK) is valued at $5 billion and spans a period of 10 years.

What services will Tetra Tech (TTEK) provide under the new USAID contract?

Under the contract, Tetra Tech will support governance initiatives, strengthen local engagement, revitalize critical infrastructure, and enhance essential public services including clean water supplies in developing countries.

How long is the duration of Tetra Tech's (TTEK) new USAID contract?

The USAID contract awarded to Tetra Tech is a 10-year indefinite delivery, indefinite quantity (IDIQ) contract.