Jacobs (JEC) Awarded $4.6B IRES Deal By U.S. Defense Unit

Jacobs Engineering Group Inc. (NYSE:JEC) recently secured a prestigious indefinite quantity, indefinite delivery contract from the U.S. Missile Defense Agency. The contract is an Integrated Research & Development for Enterprise Solutions (“IRES”) follow-on deal, with a maximum value of $4.6 billion.

On a month-to-date basis, Jacobs’ shares yielded a return of nearly 1%, as against 1.3% loss incurred by the industry.

This Zacks Rank #3 (Hold) stock is poised to grow on the back of diligent business contracts and strategic restructuring moves. Notably, the company (on Aug 7, 2017) signed an agreement to acquire CH2M HILL Companies Ltd., in sync with its efforts to become a $15-billion global solutions provider over the long run.

Inside Story

The Missile Defense Agency is a development, research and acquisition agency of the U.S. Department of Defense. The institute creates, tests and fields the ballistic missile defense system of the nation.

Per the above discussed deal, Jacobs will offer integrated solutions to aid concurrent training, test and operations within the Missile Defense Integration and Operations Center mission podium. In addition, the company will support the proper execution of the Missile Defense Agency’s information technology environment and enterprise communications.

The major work sites for the IRES contract are Virginia, Alabama and Colorado. The contract has a five-year base period and includes three award-term years.

Jacobs has already secured the status of a premium enterprise solutions provider on the back of similar critical operations’ deals awarded by the U.S. Intelligence Community, Department of Defense, and the National Aeronautics and Space Administration. The company intends to leverage its diverse experience to successfully accomplish the above-mentioned follow-on contract of the Missile Defense Agency.

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