Jacobs scores another takeaway with $785M Army training win
- By Ross Wilkers
- Mar 12, 2019
Jacobs Engineering Group has won a seven-year, $785 million contract to provide instructors and other training-related services to the Army.
Six bids were submitted to the Army for the contract that covers work at Fort Huachuca in Arizona through to March 14, 2026, the Defense Department said in its Monday awards digest.
A takeaway win for Jacobs, the Huachuca Training and Support Contract is the third recompete stemming from the Army’s current “Warfighter Focus” contract held by Raytheon for broad training, engineering, systems integration and support services to the Army.
Warfighter Focus is set to expire in October of this year and the other two recompetes from that contract have been awarded over the past 12 months.
Lockheed Martin held onto a $3.5 billion contract it won to supply training and simulation devices after a post-award protest from Raytheon was denied, while a second $2.4 billion award went to eight companies including Raytheon for training management and assistance work.
Fort Huachuca houses the Army’s Intelligence Center of Excellence, the branch’s main school for professional training of military intelligence personnel.
For Jacobs, this represents another win over a longtime incumbent for the global engineering and professional services giant that looks set to continue climbing the government IT market’s food chain with seemingly one takeaway after another in the past 18 months.
At the corporate level, Jacobs has been on a broader push to cast itself as a leading government services contractor through moves such as its CH2M Hill acquisition that closed last year and the subsequent divestiture of its former energy segment to gain greater focus on core markets like the public sector.
In her Jan. 28 coverage initiation note, Cowen & Co. equity research analyst Lucy Guo estimated “New Jacobs” to generate about 42 percent of its total sales in the government market.
The trio of takeaway contracts Jacobs secured prior to the Fort Huachuca win should also ramp up in a fiscal year where the company has “below average” recompete risk, wrote Guo, who focuses on government IT and professional services companies.
Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at firstname.lastname@example.org. Follow him on Twitter: @rosswilkers. Also connect with him on LinkedIn.