Tetra Tech Receives $400 Million Contract From US Department of Energy
Tetra Tech Inc. (NASDAQ: TTEK) has had a good run of 2016 so far, and things could get even better with its new contract from the U.S. Department of Energy. The company announced that its joint venture with Sealaska Technical Services was selected to provide design-build services to the Energy Department’s National Nuclear Security Administration (NNSA).
Under this Design, Integration, Construction, Communication and Engineering (DICCE) contract, the joint venture will share in the $400-million contract ceiling over seven years. Keep in mind that Tetra Tech has a total market cap of roughly $2 billion, for a basis of comparison.
The DICCE contract is administered by the NNSA Office of Nuclear Smuggling Detection and Deterrence (NSDD), which strengthens the capabilities and commitment of U.S. partner countries to deter, detect and interdict illicit trafficking of nuclear and other radioactive materials within the interiors of partner countries, across international borders and through the global maritime shipping system.
The joint venture team will provide design-build services to support the installation and deployment of fixed and mobile radiation detection systems and associated infrastructure at border checkpoints, airports, seaports, internal country locations and maritime borders outside of the United States.
Dan Batrack, Tetra Tech’s board chair and chief executive, commented:
Tetra Tech has provided engineering design and installation services to the NSDD office since 2002. We look forward to working with our joint venture partner to continue supporting the NNSA in this important program.
So far in 2016, Tetra Tech has outperformed the broad markets, with the stock up about 37%. Over the past 52 weeks, the stock is up closer to 50%.
Shares of Tetra Tech were trading down about 0.6% at $35.25 on Monday, with a consensus analyst price target of $38.57 and a 52-week trading range of $22.85 to $36.24.