OAK RIDGE, Tenn.--(BUSINESS WIRE)--Oct. 21, 2003--Jacobs
Engineering Group Inc. (NYSE:JEC) announced today that Bechtel Jacobs
Company, a Limited Liability Company (LLC) between Jacobs and Bechtel
National, Inc., has received a new accelerated environmental cleanup
contract from the U.S. Department of Energy (DOE) for work at various
sites in Oak Ridge, Tenn.
Officials estimate the value of this 5-year,
cost-plus-incentive-fee contract at $1.8 billion.
Under the accelerated cleanup approach, officials estimate that
DOE will realize $1.4 billion in cost savings over the life of the Oak
Ridge program. This approach is the result of a negotiated agreement
reached in 2002 between the DOE, the U.S. Environmental Protection
Agency, and the State of Tennessee to expedite cleanup and reduce
health risks at the Oak Ridge site.
The contract outlines four major cleanup project areas, each with
a specific schedule of results and associated incentive fees to ensure
accountability. These include:
- East Tennessee Technology Park, formerly known as the K-25
site: Completion of cleanup at this former gaseous diffusion
plant site by September 30, 2008
- Waste Disposition: Treatment and disposal of all legacy
low-level waste and mixed low-level waste by September 30,
- Melton Valley, a former waste disposal and experimental
reactor area of Oak Ridge National Laboratory: Completion of
all cleanup work outlined in the Melton Valley Record of
Decision near Oak Ridge National Laboratory by September 30,
- Balance of Program: Completion of all remaining cleanup
projects, including the off-site Atomic City Auto Parks and
David Witherspoon sites, by September 30, 2008
Bechtel Jacobs has been the cleanup contractor for DOE's Oak Ridge
operations since signing a $2.5 billion management and integration
contract in 1997.
Jacobs Engineering Group Inc. and Bechtel National, Inc., form
Bechtel Jacobs Company LLC, which employs approximately 750 people in
its Oak Ridge office and manages the cleanup program for DOE. Bechtel
Jacobs subcontracts with other companies for most of the actual
cleanup work as well as the treatment and disposal of wastes. Both
companies are international engineering and construction firms with
strong backgrounds in environmental remediation for government and
Jacobs, with over 35,000 employees and revenues approaching $5.0
billion, provides technical, professional, and construction services
Any statements made in this release that are not based on
historical fact are forward-looking statements. Any forward-looking
statements made in this release represent management's best judgement
as to what may occur in the future. However, Jacobs' actual outcome
and results are not guaranteed and are subject to certain risks,
uncertainties and assumptions ("Future Factors"), and may differ
materially from what is expressed. For a description of Future Factors
that could cause actual results to differ materially from such
forward-looking statements, see the discussion under the section
"Forward-Looking Statements" included in Management's Discussion and
Analysis filed as part of Exhibit 13 to the Company's 2002 Annual
Report on Form 10-K.
CONTACT: Jacobs Engineering Group Inc.
Sherry Sweitzer, 626-578-6992
SOURCE: Jacobs Engineering Group Inc.