Tetra Tech Inc. (TTEK), a global provider of engineering and consultancy services, has received a $50 million architecture/engineering (A/E) services contract from the Millennium Challenge Corporation (“MCC”). MCC is an independent U.S. foreign aid agency engaged in a worldwide drive to remove poverty.
As per the contract, Tetra Tech will be providing indefinite delivery/indefinite quantity (ID/IQ) A/E services to MCC’s infrastructure development projects in 25 developing countries in Latin America, Africa, Eurasia and the Middle East. The base period of the contract is five years and orders for the development work will be awarded to various ID/IQ contract holders based on competitive bidding.
The project aims to improve the living condition of the people through a better provision of basic amenities for an easy and developed lifestyle. The contract covers water resource management and water supply; construction and up-gradation of roads, ports, airports, and railroads; sanitation improvements; energy and power resource development; and industrial and institutional services. Tetra Tech will be providing its engineering and consultancy services, which will aid in the development, assessment, designing and monitoring of the projects.
MCC is engaged in a number of such social development projects and this contract provides further opportunities for Tetra Tech to be a part of more of such projects.
The company delivered strong results for the third quarter of fiscal 2010, outperforming its own as well as the Zacks Consensus expectation for the quarter on both top line and bottom line. The company’s impressive performance was driven by strong front-end consulting and engineering services to federal and international clients. The company reported gross total revenue of $562.4 million versus $551.4 million in the third quarter of fiscal 2009.
Headquartered in Pasadena, California, Tetra Tech Inc. was initially founded in 1966 as a provider of engineering services related to waterways, harbors and coastal areas. Over the past 40 years, the company has substantially increased the size and scope of its business and expanded its service offerings through a series of strategic acquisitions and internal growth. Tetra Tech at present provides environmental services, water/wastewater management, infrastructure services, security design, and outsourced technical services. The company currently operates 250 offices worldwide and employs about 10,000 people. Major competitors of Tetra Tech are Arcadis NV, Shaw Group Inc. (SHAW) and URS Corporation (URS).
We currently maintain our Neutral rating on Tetra Tech, with a Zacks #3 Rank over the next one-to-three months.