ANAHEIM, Calif.--(BUSINESS WIRE)-- Willdan Group, Inc. (NASDAQ: WLDN) today announced that it has been awarded two new master contracts to perform energy-efficiency and water-conservation upgrades in facilities managed by the State of California's Department of General Services (DGS). Each contract has a $60 million ceiling over an eight-year time period. The contracts are designed by the State of California to help achieve the energy and water consumption goals of Executive Order B-18-12, which includes a 20% reduction by 2020. California is the eighth state to select Willdan for this type of energy efficiency contract vehicle.
"These new programs represent a significant opportunity to expand our services to the State of California," said Tom Brisbin, Willdan's CEO. "Projects under each program are expected to be assigned over the next 24 months and completed within the eight-year duration of the master contracts. As we receive project assignments, we will have more visibility on the timing and scope of the revenue impact of these programs in the coming years."
One of the contracts applies to "large" DGS facilities - generally defined as facilities with peak demand exceeding 200 kW and floor area 50,000 square feet or greater. The other applies to "small" facilities - generally defined as facilities with peak demand below 200 kW and floor area of less than 50,000 square feet.
Master contracts for the energy-efficiency and water-conservation upgrades were awarded to five firms, with projects in DGS facilities to be awarded to each firm on a rotational basis. Within each master contract, Willdan will be called upon to provide preliminary assessments, investment grade audits, implementation services, and measurement & verification of energy savings for DGS facilities. Willdan will negotiate project-level contracts for subject facilities under the master contracts.
Specific scopes of work will be developed as part of project-level contracts. Likely measures to be included in those contracts include installation and expansion of building automation control systems; implementation of solar and other renewable energy sources; upgrades of lighting systems to LED; upgrades to outdated heating and air conditioning systems; water conservation; and other cost-savings measures.
Willdan provides professional consulting and technical services to utilities, public agencies and private industry throughout the United States. The Company's service offerings span a broad set of complementary disciplines that include energy efficiency and sustainability, engineering and planning, financial and economic consulting, and national preparedness. Willdan provides integrated technical solutions to extend the reach and resources of its clients, and provides all services through its subsidiaries specialized in each segment. For additional information, visit Willdan's website at www.willdan.com.
Statements in this press release that are not purely historical, including statements regarding Willdan's intentions, hopes, beliefs, expectations, representations, projections, estimates, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risk that Willdan will not be able to expand its services or meet the needs of customers in markets in which it operates. It is important to note that Willdan's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, a slowdown in the local and regional economies of the states where Willdan conducts business and the loss of or inability to hire additional qualified professionals. Willdan's business could be affected by a number of other factors, including the risk factors listed from time to time in Willdan's SEC reports including, but not limited to, the Annual Report on Form 10-K filed for the year ended January 1, 2016. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release.
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Willdan Group, Inc.
Chief Financial Officer
Financial Profiles, Inc.
Tony Rossi, 310-622-8221
Source: Willdan Group, Inc.