Jacobs/Serco/Lockheed Martin Joint Venture Concludes AWE Pricing Arrangements through to 2018
PASADENA, Calif., May 15, 2012 /PRNewswire/ — Jacobs Engineering Group Inc. (NYSE:JEC) announced today that AWE Management Limited (AWE ML), in which it has a one third share, has concluded the arrangements for the next pricing period regarding the contract to Manage and Operate the Atomic Weapons Establishment (AWE) plc in the United Kingdom. Formed in 2000, AWE ML is a joint venture between Jacobs, Lockheed Martin and Serco to manage AWE plc on behalf of the UK Ministry of Defence (MOD).
The conclusion of recent negotiations is an important milestone although the contract has no material changes. The new arrangements will take effect from 1 April 2013 and run through to 31 March 2018. The total value to AWE ML is an average of around 1 billion GBP (USD 1.59 billion) per year with approximately 40 percent to be invested in capital projects.
Jacobs President and CEO Craig Martin stated, “Working in partnership with the Ministry of Defence, we have successfully overseen and managed the delivery of services by AWE plc in support of the UK’s nuclear weapons program for a number of years and look forward to continuing to make a key contribution to its mission, together with our partners Lockheed Martin and Serco.”
AWE ML manages AWE plc for the MOD under a Government Owned/Contractor Operated arrangement. AWE’s sites and facilities remain in government ownership, but day-to-day management is contracted to AWE ML. The AWE ML contract is performance based.
Jacobs is one of the world’s largest and most diverse providers of technical, professional, and construction services.
Statements made in this release that are not based on historical fact are forward-looking statements. We base these forward-looking statements on management’s current estimates and expectations as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2011 Form 10-K, and in particular the discussions contained under Items 1 – Business, 1A – Risk Factors, 3 – Legal Proceedings, and 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations. We do not undertake to update any forward-looking statements made herein.
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SOURCE Jacobs Engineering Group Inc.