Dive Brief:
- Construction and engineering giant AECOM has announced the formation of a new business division within its Construction Services unit devoted to federal contracting, according to a company press release.
- Former Kiewit Corporation executive Vern Kuehn will head up the new division, which the company said will focus its efforts on bringing design-build and integrated project delivery to a broad range of federal clients.
- The company said the new division will focus on serving the nation's military construction program, the General Services Administration and the State Department, among others.
Dive Insight:
AECOM has a significant international presence in all major industry areas and claimed revenue of more than $17 billion in 2016.
In March, Bloomberg reported that AECOM was planning a five-year, $3.5 billion program of acquisitions and investments in an attempt to become the largest infrastructure firm in the world in anticipation of an aggressive U.S. spending program. At the same time, the company sent the Treasury Department a $200 billion list of proposed water and infrastructure projects that reportedly would have a $1.3 trillion economic impact.
Given the company's infrastructure expertise, it could find itself a major player in President Donald Trump's proposed $1 trillion plan to overhaul the country's highways, bridges and public works assets. At the beginning of March, AECOM CEO Michael Burke said he did not expect work under the Trump plan to get fully underway until 2018 or 2019.
Since then, administration officials have said the president might try to push through an infrastructure bill along with tax reform in the next few months. However, the constant changes in schedule for release of the new plan and proposed cuts to current transportation grant programs have some worried about the future of the infrastructure sector.
One project that reportedly is not on AECOM's radar is the U.S.–Mexico border wall, according to CityLab. Other major AEC firms like Bechtel and CH2M have indicated they will not bid either.
AECOM has also expanded its construction business, announcing in February that it rebranded two fast-growing acquisitions, Tishman Construction and Hunt Construction, as AECOM Tishman and AECOM Hunt.
