Recently Tetra Tech Inc. ( TTEK ) has won a $17.8 million contract with McClellan Business Park, LLC. The contract requires Tetra Tech to perform environmental services for the privatized cleanup of portions of the former McClellan Air Force Base in California.
Tetra Tech is a leading provider of environmental services and helps in the development of clean energy solutions and drafts environment-related public service policies.
The Air force base was transferred by U.S. Air Force to McClellan Business Park to undergo remedial actions. As per the terms of the agreement, Tetra Tech will be responsible for evaluating and undertaking remedial measures over 130 Installation Restoration Program (IRP) sites spanning 600 acres. Consequently, the area would be available for future development and job creation.
Although the time of signing the contract has not been specified, we expect it to be booked in the current quarter. During the last quarter the company was awarded a number of long-term contracts, many of them coming from the company's U.S. federal government programs, like U.S. Agency for International Development (USAID).
Earlier this month, Tetra Tech revealed its lower earnings expectation for the second half of fiscal 2013. The primary reason behind this projection is the company's poor performance in Eastern Canada. This contract is expected to help the company in its recovery during the second half of the year.
Tetra Tech currently has a Zacks Rank #3 (Hold). Other companies in the industry that are worth considering include Calgon Carbon Corporation ( CCC ), CECO Environmental Corp. ( CECE ) and Fuel-Tech, Inc. ( FTEK ), all having a Zacks Rank #2 (Buy).