Executive Summary
Jacobs Engineering Group Inc., through its CH2M HILL - CDM PA-TAC RECOVERY SERVICES subsidiary, captured a $94,743,378 DHS/FEMA delivery order for Hermit Peak Calf Canyon Fire disaster recovery consulting, representing 100% civilian exposure with zero defense contracts in this period.
The Time and Materials award under full and open competition confirms $88,083,223 in outlays (93% of total), yielding ~$37-38M gross annual revenue and ~$12M net after $64,826,881 in subawards. Highest-conviction bullish signal stems from substantial revenue recognition in sustained FEMA emergency response spending (NAICS 541611, PSC R429). Key watch item: remaining ~$6.6M outlays and contract performance end date of 2025-08-15, with medium pricing risk and high subaward reliance potentially pressuring prime margins.
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Tracking the trend? Catch up on the prior Federal Professional Services Contracts digest from April 25, 2026.
Investment Signals (1)
- Jacobs Engineering Group Inc. (CH2M HILL) Locks in $94.7M DHS/FEMA Fire Recovery Order with 93% Outlays Confirmed (MEDIUM)▲
$94,743,378 total obligation awarded on 2023-02-14, with $88,083,223 already disbursed including $64,826,881 in 114 subawards, netting ~$29.9M for the prime on a 2.5-year Time and Materials contract for professional services in Santa Fe, NM. Supports confirmed federal revenue in disaster recovery consulting amid sustained FEMA priorities.
Risk Flags (2)
- Execution [MEDIUM RISK]▼
High subawards of $64,826,881 across 114 recipients leave Jacobs Engineering Group Inc. with only ~$29.9M net obligation on the $94.7M DHS/FEMA order, risking margin compression on the remaining ~$6.6M outlays through 2025-08-15.
- Budget [MEDIUM RISK]▼
93% ($88.1M) of the $94.7M DHS/FEMA obligation already outlayed limits future revenue upside for Jacobs Engineering Group Inc., with only ~$6.6M remaining.
Opportunities (1)
- ◆
Jacobs Engineering Group Inc. positioned for sustained FEMA disaster recovery spending via $94.7M professional services order (PSC R429, NAICS 541611) under full and open competition.
Sector Themes (1)
- ◆
DHS/FEMA's $94.7M Time and Materials delivery order to CH2M HILL (Jacobs Engineering) for Hermit Peak Calf Canyon Fire Claims Office underscores priority on administrative management consulting (NAICS 541611) with 93% outlays confirming execution.
Watch List (1)
- 👁
{"entity"=>"Jacobs Engineering Group Inc.", "reason"=>"$94.7M DHS/FEMA order with ~$6.6M remaining outlays and $64.8M subawards; medium pricing risk on Time and Materials structure.", "trigger"=>"contract performance end date 2025-08-15, remaining outlays disbursement, modifications"}
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