) recently received an indefinite delivery/indefinite quantity,
multiple award contract from the U.S. Army Engineering and
Support Center, Huntsville, AL. The scope of the contract
includes providing design-build services for the Medical Repair
and Renewal Program in the continental U.S. and abroad. In
addition, the contract also involves repairs, renovations and
procurement along with installation and maintenance of required
equipment and systems.
The contract is valued at about $585 million and has a span of
five years, comprising one base year with four one-year option
periods. As per the terms of the contract, URS will either need
to bid or will be awarded tasks to design and build U.S. Army
The contract will be included in the company's Federal
services segment which comprised about 40% of the total revenues
generated by URS in the year 2012. Prior to this contract, URS
assisted the U.S. military in performing medical facilities
design and build at the Keesler Air Force Base Medical Center
following Hurricane Katrina. URS also helped the U.S. military to
renovate the base.
Following this, URS received another contract for the
design-build of a new Medical Education Training Complex at Fort
Sam Houston, Texas. URS' past track record in design-build of
healthcare facilities has thus earned the confidence of the U.S.
In the recently reported quarter (1Q13) Federal Services
revenue was $678.2 million, down 5.4% from $717.1 million a year
ago. The decline in Federal Services revenues reflects the
continuing delay in procurement decisions and reduction in
anticipated spending against previously awarded contracts.
URS has a Zacks Rank #4 (Sell). While we remain bearish on
URS, engineering company stocks such as
Quanta Services Inc
Harris & Harris Group Inc.
Willdan Group Inc
) warrant a look. All three stocks carry a Zacks Rank #2
QUANTA SERVICES (PWR): Free Stock Analysis
HARRIS & HARRIS (TINY): Get Free Report
URS CORP (URS): Free Stock Analysis Report
WILLDAN GROUP (WLDN): Get Free Report
To read this article on Zacks.com click here.