Aecom Technology Corporation. (
has recently procured a $94.6 million contract from the Los
Angeles Community College District (LACCD) for a building
project. The entire development program spanning over 14 years is
expected to cost around $6 billion. The final phase of the
project is likely to be completed within 5 years.
The program involves renovation and modernization of nine
colleges in the districts and upgradation of related facilities
for students, faculty and staff. The project will be primarily
financed through the taxpayer-approved bonds that will be further
complemented by the state government of the state of
As per the terms of the contract, Aecom will be utilizing the
project funds to maximize returns. Aecom will also look after the
effective management so that project goals are attained at the
earliest with centralized governance for the last stage. In the
final stage, the balance $2.7 billion will be spent in accordance
with the recent LACCD's reform guidelines and will also be
subject to a transparent reporting requirement.
Based in Los Angeles, CA, Aecom is a global provider of
professional technical and management support services to a broad
range of markets, including transportation, facilities,
environmental and energy. The company's Management Support
Services segment offers facilities management and maintenance,
training, logistics, consulting, technical assistance, and
systems integration services primarily to the agencies of the
United States government. Aecom's management is very optimistic
about this project.
Aecom currently carries a Zacks Rank #3 (Hold). Other stocks
to watch out for in the construction sector are
Michael Baker Corporation
), carrying a Zacks Rank #1 (Strong Buy), as well as
Harris & Harris Group, Inc. (
Quanta Services, Inc. (
, which carry a Zacks Rank #2 (Buy) each.
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