Primoris Services Corporation (NASDAQ Global Select: PRIM) (“Primoris” or “Company”) today announced two new major contract awards totaling over $393 million. The new contracts were secured by ARB and James Construction Group, two Primoris subsidiaries. The projects include a major utility alliance contract for pipeline integrity work in California and a large highway infrastructure project in Mississippi. In the West Construction Services Segment:
- The ARB Underground group has been selected by Pacific Gas and Electric, through an “alliance” process, to receive a three year contract, with two one-year options, as part of their PSEP (Pipeline Safety Enhancement Plan) program.
- ARB was awarded the “Bay Area” of California, which includes the San Francisco, San Jose, and Oakland regions.
- This alliance agreement replaces the delivery system PG&E has used for their integrity work in previous years. The contract work will encompass all forms of system integrity upgrades including hydrotesting, valve automation/replacement, and in-line inspection/replacement.
- The work will begin immediately and is initially valued at roughly $100 million/year for a total of $300 million over the course of the three year contract.
- MDOT, the Mississippi Department of Transportation, recently awarded James Construction Group a new contract valued at approximately $93.5 million for rehabilitation and improvements to Interstate 55 south of Jackson, Mississippi. The project is slated to start in the second quarter of 2013 and should be complete in the first quarter of 2016. The work scope includes roughly:
- 850,000 cubic yards of excavation
- 350,000 tons of asphalt
- 95,000 linear feet of cast-in-place barrier rail
- two bridges