AECOM Technology Corporation (ACM) disclosed that its joint venture, Compass PTS, won a contract from the U.S. Department of Homeland Security’s Federal Emergency Management Agency (‘FEMA’). The contract involves the offering of flood and other risk data services to enhance public alertness and reduce the risk to life and property.
The contract with a ceiling of $600 million has a span of five years along with an option to extend. The project, which is scheduled to start amid Dec 2014 – 2019, is projected to garner around $100 to $300 million in yield, over its span.
Being the managing party of Compass PTS, AECOM has been chosen as one of two preferred consultant joint ventures for offering architectural and engineering services to FEMA’s various large-scale projects. In particular, AECOM, along with the other controlling and joint venture partners of Compass PTS, will provide production and technical services for Hazard Mitigation Technical Assistance Program (‘HMTAP’), Technical Assistance and Research Contracts (‘TARC’) and Risk Mapping, Assessment and Planning (‘Risk MAP’) programs of FEMA.
This contract win by AECOM’s joint venture is encouraging, as it will boost its Professional Technical Services segment revenues. Further, the contact will strengthen AECOM’s core business by developing its integrated service platform and gaining global expertise as a leading infrastructure provider.
AECOM currently carries a Zacks Rank #1 (Strong Buy). Other well-performing stocks in engineering research and development services industry are Pernix Group Inc (PRXG), Quanta Services, Inc. (PWR) and Willdan Group, Inc. (WLDN). All three carries a Zacks Rank #2 (Buy).
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