) won a job order contract (JOC) from the University of Houston
to provide construction management services across the university
campuses and centers located in the city. The financial details
of the contract have not yet been disclosed. However, as per the
terms of the agreement, the value of contract and scope of KBR's
service will keep changing as and when task orders are issued
Job Order Contracting (JOC) is a delivery method that helps to
streamline and expedite the procurement and execution of
small-to-medium renovation/repairing of construction
projects.Especially in an institution like Houston University,
JOC will complement the internal maintenance workforce, freeing
them up from complex, one-time projects, so that they can focus
on their primary mission.
KBR has a significant experience and a broad client base that
uses its JOC services. Earlier, the company delivered a number of
JOC-related services to the educational, municipal, military and
healthcare sectors. Also, KBR possesses a breadth of services and
experience to achieve the University's maintenance and
construction goals due to its rich prior experiences.
During the last few quarters, a number of new contracts have
been showering upon KBR. This included a contract by
petrochemical giant Sasol Technology (Pty) Ltd, to provide
engineering, procurement and construction management (EPCM)
services for its gaseous oxygen compressor at the Oxygen East
Plant in South Africa. Also its joint venture with CH2M Hill was
awarded a contract worth $17.9 million under the Air Force
Contract Augmentation Program (AFCAP).
Given the favorable scenario, we expect the KBR stock to
experience a revision and show a rising trend in the coming
quarters. KBR also recently hit a 52-week high on May 31, with a
price of $36.69, beating its previous high of $36.46 attained on
May 22, 2013.
KBR currently has a Zacks Rank #3 (Hold). Other stocks from
the same sector that look promising include
Michael Baker Corporation (
with a Zacks Rank #1 (Strong Buy), while both
Pernix Group Inc (
Willdan Group, Inc. (
have Zacks Rank #2 (Buy).
BAKER (MICHAEL) (BKR): Free Stock Analysis
KBR INC (KBR): Free Stock Analysis Report
PERNIX GROUP (PRXG): Get Free Report
WILLDAN GROUP (WLDN): Get Free Report
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