Sole Source Award (No-Bid Contract) to Australian Lend Lease
Bob McNamara, Lend Lease CEO of The Americas, explains to investors how this is “Big Business” for Lend Lease:
“On the infrastructure development which is our Lend Lease Actus business, the military family housing program which is known as MHPI has sunsetted. There’ll be no more major new programs there. What goes on in that space though is that each of these units that have been left behind that actually have two and three and four years worth of development period left on them, they’ll continue to churn out work. The operations and maintenance part of these units, also what they do is as the base housing allowance increases as a result of inflationary pressures, these businesses wind up with having enough NOY to basically fund continuous development.
That is a tail that’s going to go on for decades. So there’s a very strong tail of long term earnings that will come out of that business, and just a remarkable positioning by the team there. They’ve dominated that space and you know, they’ve got some nice winds. In addition to that kind of development, there’s also areas like the lodging area which is a big business for us, both what’s called PAL A and PAL B. This is basically privatization of lodging that goes on inside the military bases.
These were significant awards and sole sourced awards, I might add. So just indicative of what’s going on inside the team.” – Lend Lease Investor Day May 2011.
Here’s the full PDF of Bob McNamara’s comments at Lend Lease Investor Day 2011: