Bob Pragada
President and Chief Operating Officer at Jacobs Solutions
Thank you, Steve. Moving on to Slide 7 to review Critical Mission Solutions. During the first quarter, our CMS business continued its strong performance with total backlog increasing 11% on a pro forma basis to $10.8 billion, driven by strategic new wins in space, cyber and intelligence. Our CMS strategy is focused on creating resilient revenue growth and margin expansion by offering technology enabled solutions aligned to critical national priorities. Three market trends that we see offering continued strong growth this year include spaceborne ISR, edge analytics and intelligent asset management.
Beginning with space ISR. Our military leaders contend that future conflicts will be won by those with an information advantage, enabling the ability to outpace, outthink and outmaneuver our near peer adversaries across multiple domains. Land, sea, air, cyber and increasingly space. Low orbiting surveillance satellites can collect data much more quickly than airborne ISR covering 35 folds the number of miles per hour. These small sacs with radio frequency synthetic aperture radar provide time critical intelligence in support of commercial and military missions.
Jacobs continues to develop its advanced payload production and integration capabilities, building on technologies from KeyW. With our recent successes, along with the integration of BlackLynx innovative software platforms, we have unlocked the opportunity to create a potential $0.5 billion annual recurring space ISR business longer term.
Also during the quarter, Jacobs won a 36-month contract to provide state of the art digital aerial imagery data that will be used to enhance precision, agricultural practices in the Midwestern United States. The services will be provided using KeyW technology called Geopod, which is a scalable, highly-agile, airborne imagery system.
Moving on to edge analytics. Data is often utilized in challenging and unlikely places like the International Space Station, a military satellite, shifted sea, factory floors, water purification plants, traffic lights and neighborhood pharmacy. Data mines traditionally reside in a data center of cloud with many important decisions need to happen on the edge. Jacobs recent acquisition of BlackLynx edge analytics leader in providing the sensors, software and analytic services, allows leaders to speed their decision making exponentially. As edge computing proliferates across all domains, rapidly gaining actionable insights from the back data becomes essential. We are already leveraging BlackLynx edge computing capabilities, not only across CMS, but also the infrastructure sectors of PMPS in 2022.
Now in the area of intelligent asset management. We're continuing to build on the solutions we develop with NASA centers and have now deployed at multiple U.S. Navy installation. Typically, these programs range from $250 million to $300 million over six to eight years. We see a growing pipeline of opportunities that span across DoD, the intelligence community and commercial clients. The value for our clients is increased uptime and availability of the facilities at lower total lifecycle costs, achieved through targeted use of predictive analytics while simultaneously upskilling the workforce at these mission critical complex installations.
In summary, we see solid demand for our solutions in 2022, despite the headwinds of the continuing resolution, which will likely get extended through March, although we are seeing some funding push outs impacting our cyber intelligence and defense clients, there are pockets of new finding across our diverse U.S. government customer base, as well as in commercial sectors like telecom where 5G continues to advance. CMS sales pipeline remains robust with the next 18 month qualified new business pipeline remaining at $30 billion, including $10 billion in source selection, with an expanding margin profile.
Now on Slide 8, I'll discuss our People & Places Solutions business. We started the fiscal year with strong financial performance, resulting in 10% year-over-year backlog growth. I will discuss our results across four areas, including climate response, supply chain diversification, Infrastructure data solutions and infrastructure modernization.
Starting with climate response. Opportunities continue to increase related to energy transition and this has resulted in growth across our end markets and client sectors, notably for grid resiliency, green hydrogen and renewable energy generation. Most recently Jacobs was selected as the program management partner to Pacific Gas and Electric on their multi-year electric undergrounding program, the largest of its kind in the U.S. The ambitious program will bring 10,000 miles of power lines underground to mitigate wildfires in and near high fire threat areas to respond to California's evolving climate challenges.
Jacobs will provide a global interdisciplinary team as well as advanced technology approaches that draw on more than 30 years of experience with PG&E and other large complex undergrounding programs like SuedLink in Germany. This important win also leverage our subject matter experts in PA for yet another synergistic win together. With our recent award at the Pembroke Power Station in the UK, we are building on our portfolio of industry leadership in the area of hydrogen based power and we've been successful with multiple awards related to solar and wind renewable generation projects in Wyoming and Australia.
Moving to supply chain diversification. As a result of the global supply chain challenge, all sectors in our advanced facilities business are in growth mode with semiconductors, life sciences and electric vehicles leading the field. And across thee sectors, our ability to leverage our global integrated delivery platform and data-centric execution on these complex securities is a clear market differentiator. Our solutions include significant win with an Asia chip manufacturer expanding capacity in North America, continued support of Intel with additional facility, including new builds in the U.S.
And Jacobs was awarded the delivery of the First Data Center building for a major colocation clients in the Southwestern United States. In health and life sciences, we recently won a project with Spark Therapeutics, a gross pharmaceuticals company to build a gene therapy innovation center in Downtown Philadelphia to research, develop and manufacture state of the art products. Jacobs continues to deliver sustainable facilities across life sciences, like FUJIFILM Diosynth Biotechnology's new large-scale cell culture facility in North Carolina. The largest of its kind in North America with a goal of 100% clean energy utilization and cutting-edge waste disposal in recycling system. This is a great example of projects that enable us to deliver on our purpose of creating a more connected state of the world.
Critical health care for thriving communities is central to our purpose and our teams are working with clients to advance outcomes, including design of a mental health facility serving communities in Western Sydney, recent completion of a state of the art surgical center in Central Florida and a major hospital redevelopment in Southeast Asia.
Moving to infrastructure data solutions. Combining our recent digital acquisitions of BlackLynx and StreetLight, as well as our venture investment in Microgrid labs, we are well positioned to provide our clients with technology enabled solutions through enhanced analytics and insights. We are also ideally positioned to deliver unparalleled value to the transportation and electric vehicle ecosystem, including an innovative, inroad charging system in the Midwestern United States with ElectReon. In the UK, we are expanding our support of climate risk mitigation and multi-community resiliency for the Environment Agency for continued innovation of our proven proprietary digital technology, Flood Modellor.
Additionally, as part of the first water breakthrough challenge, we provided technical support to Anglian Water and United Utilities, which resulted in innovation award in the area of artificial intelligence for system operation and climate resilient solutions. Touching on infrastructure monetization. MIA in the Kingdom of Saudi Arabia is unique greenfield opportunity where Jacobs is delivering strategic planning and consultancy services to build towards a net zero future.
In the U.S., we are supporting clients on major programs and projects to align with capital funding and investment plan. We were selected for these awards based on our industry-leading implementation and long-term delivery success. Specifically, Jacobs was awarded the next phase of a major water treatment facility in North Texas, the new Tollway Ship Channel bridge in Houston, Denver International Airport's seventh runway expansion and a critical win with our long time customers in New York Metropolitan Transportation Authority. In summary, our global capability and innovative solutions have continued to differentiate Jacobs and provide confidence in the strength of our business based on early positioning with our clients and longer-term global infrastructure stimulus.
Turning to Slide 9. Let's review our PA Consulting business. As Steve mentioned, PA continues to significantly outperform. Their unique combination of outcome driven strategic and digital consulting means that they are able to capitalize on the world's current mega trends of agile working, climate change, human health and safety and digital transformation. As an example, their clients focus on hybrid working, is creating new opportunities for PA in organizational agility and resilience offering in a range of sectors including financial services and life sciences.
Digital Consulting remains PA's broadest technical capability, supported by increases in the last year data science analytics and AI. Aligned with this, PA continues to add to its technology portfolio with offerings such as Oakdoor, a data diode, which provides a new level of security for highly sensitive data even for the most sophisticated segmented networks. I predict a groundbreaking AI system for predicting failures in critical electricity distribution, which has led to exciting new projects and opportunities with public utility providers in the United States.
And in the health market, PA has partnered with U.S. based medical device startup, Bearpac Medical to create the Passio Pump Drainage System, a digital handheld single patient use device to improve patient care and comfort. PA maintains its strong relationship with the U.K. government and has secured two new contracts for smart metering and electronic monitoring services.
In the private sector, PA successfully completed two projects with U.S. based commercial partners, the first with Rheia LLC is to develop a new air distribution platform to overcome material shortages and system installation challenges faced in the homebuilding industry. And the second with TeakOrigin, a food startup to validate and launch an innovative business model to expand market opportunity. PA Continues to be an exciting part of Jacobs portfolio into the crucial part of our new strategy as we continue to grow in the consulting and advisory space.
Over to you, Kevin.
