Chicago Bridge & Iron (CBI) recently signed a $160-million worth indefinite delivery/indefinite quantity contract with the Environmental Protection Agency (EPA). Per the terms of the contract, CBI will be providing environmental remediation services according to the orders received by Region 9 of EPA. This region includes states like Arizona, Nevada, California, Hawaii, tribal nations and U.S. territories in the Pacific Ocean.
The Environmental & Infrastructure division of Chicago Bridge provides full-scale environmental and infrastructure services for government and private-sector clients around the world. Through this division, the company provides program and project management, design-build, engineering and construction, sustainability and energy efficiency, remediation and restoration, science and technology, facilities management and emergency response and disaster recovery.
This contract is a significant achievement for CBI as usually the government selects Tetra Tech Inc. (TTEK) for such kind of services. Recently, in the first week of May, Tetra Tech received a $100 million environmental remediation services contract from the U.S. Department of Defense.
CBI has always received projects in its core area of expertise such as LNG storage tanks and engineering, procurement, construction activities for the energy sector. Now with this contract, CBI can also benefit from the potential in the environmental sector.
Chicago Bridge & Iron primarily engages in the design, build, repair and modification of steel tanks and other steel plate structures. In addition, the company also has expertise in the design and build of petroleum terminals, refinery pressure vessels, low temperature and cryogenic storage facilities and elevated water storage tanks for clients internationally.
CBI currently has a Zacks Rank #3 (Hold). Other industry players such as Orion Marine Group Inc. (ORN) and Harris & Harris Group Inc. (TINY) carry a Zacks Rank #2 (Buy) and are worth a look.
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