Tetra Tech, Inc.
) recently announced that it has secured an indefinite
delivery/indefinite quantity contract worth $489 million from the
U.S. Army Chemical Materials Agency (CMA) and is a part of
Integration Support V (PAIS V) contract.
As per the contract, the company will be providing program
management and technical support to the CMA and the Assembled
Chemical Weapons Alternatives program at facilities across the U.S
for the next five years.
Tetra Tech will also support a variety of program management,
integration and technical services support for aiding efficient
destruction of chemical warfare and related material. This support
comprises environmental studies, design, monitoring, operations and
maintenance, quality assurance, safety and logistics support
Simultaneously, the PAIS V contract activities enable the U.S.
Army to fulfill the international chemical weapons conventions and
move toward disintegration of chemical agent disposal facilities
and stockpile storage areas.
Apart from this, Tetra Tech will also be helping CMA in managing
its non-stockpile chemical material program and chemical stockpile
emergency preparedness program.
In addition, Tetra Tech recently received a contract for the
excavation and construction activities related to the environmental
decontamination of Vietnam's Da Nang Airport, affected by dioxin
pollution. This contamination was the result of the use of chemical
herbicides and defoliant during the Vietnam War
As per the terms of the contract with the U.S. Agency for
International Development (USAID), Tetra Tech will be supporting
the first U.S.-funded (in coordination with the Government of
Vietnam) decontamination program.
Under the contract terms, the company will support the
construction of access roadways, build a thermal desorption pile
containment structure, excavate and dewater dioxin-contaminated
soils and sediments and place them into the pile containment
structure for treatment, thereby by providing remediation measures
to the affected site.
Both these contracts will benefit the company's backlog, which
stood at $2.06 billion in the recently reported third quarter. In
addition, the company has also raised its earnings guidance for
fiscal 2012, based on rising demand for its services across the
Tetra Tech Inc. is a leading provider of consulting,
engineering, program management, construction and technical
services focusing on resource management and infrastructure. It
serves its clients by providing cost-effective and innovative
solutions to fundamental needs for water, environmental and
alternative energy services.
We currently maintain our Neutral recommendation on Tetra Tech
Inc. The stock also carries a Zacks #3 Rank, implying a Hold rating
over the next one-to-three months.
TETRA TECH NEW (TTEK): Free Stock Analysis
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