Premium technical service company Tetra Tech, Inc.’s TTEK joint venture with Michael Baker International, Inc. has won a “single-award, indefinite delivery contract” worth $50 million from the U.S. Navy.
Per this contract, the joint venture will provide architectural and engineering services to the U.S. Department of Defense (“DoD”) and other federal installations to help comply with the environmental standards. The contract, which extends for a period of five years, strengthens Tetra Tech’s business relationship with the Navy that spans over a period of fifty years.
Projects of the Navy include preparation of plans and engineering design documents for various media including monitoring of petroleum storage tanks, wastewater reuse, oil spill preparedness and waste management, to name a few. Tetra Tech will be responsible for integrating sustainable practices into the engineering design documents that in turn will help DoD in accomplishing its waste minimization, energy efficiency, water conservation and other sustainable practices.
The latest contract win highlights Tetra Tech’s capability of winning noteworthy contracts from the U.S. federal government. As a matter of fact, Tetra Tech’s backlog level for ongoing operations grew 5% year over year in the first quarter of fiscal 2016, aided by major contract wins from federal, commercial and municipal clients.
We believe the company’s solid backlog levels, coupled with a robust pipeline of billion-dollar awards from major government organizations like U.S. Department of State, U.S. Army Corp. of Engineers and U.S. Air force will supplement its financials going forward. Further, the company’s concerted efforts of strengthening its position in the U.S. commercial, international, state and local businesses also bode well.
Tetra Tech currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Landauer Inc. LDR, Vertex Energy, Inc. VTNR and Waste Management, Inc. WM. All three stocks have Zacks Rank #2 (Buy).
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