AECOM to acquire URS Corporation in USA



Merger creates huge new global project and program management services company

14 July 2014 – Los Angeles and San Francisco, California, USA – AECOM Technology Corporation and URS Corporation (NYSE:URS) today announced the execution of a definitive agreement under which AECOM will acquire all outstanding shares of URS for a combination of cash and stock valued at approximately US$4 billion or US$56.31 per URS share, based on the AECOM closing share price as of July 11, 2014. Including the assumption of URS debt, the total enterprise value of the transaction is approximately US$6 billion.

The combined company will be a leading, fully integrated infrastructure and federal services provider with more than 95,000 employees in 150 countries. It would have calendar year 2013 pro forma revenues of more than US$19 billion and EBITDA of approximately US$1.3 billion.

140714-pmwj25-aecom-IMAGE“This combination creates an industry leader with the ability to deliver more capabilities from a broad global platform to reach more clients in more industry end markets,” said Michael S. Burke, AECOM president and chief executive officer. “Clients, employees and stockholders of both companies will benefit from the opportunities created by these expanded capabilities, broad global reach in key growth markets and economies of scale. In one step, we will dramatically accelerate our strategy of creating an integrated delivery platform with superior capabilities to design, build, finance and operate infrastructure assets around the world.”

Martin M. Koffel, chairman and chief executive officer of URS, stated, “This is a compelling strategic combination that we believe will benefit our clients, stockholders and employees. URS stockholders will receive significant, immediate value from the transaction and will be able to participate in the future prospects of the combined company, which we expect will be better positioned to compete for major, complex projects across a diverse range of end markets and geographic regions.”

Koffel continued, “Our two businesses are complementary, and our cultures are highly compatible. We anticipate that employees from the combined company will benefit as the organization integrates its leadership talent and capitalizes on its greater scale to invest in its people, improve their career opportunities and advance their capacity to compete globally.”

AECOM will pay US$56.31 per URS share, based on AECOM’s closing price on July 11, 2014, representing a premium of 19% over the trailing 30-day average closing price of URS shares ending July 11, 2014. URS stockholders will receive per share consideration equal to US$33.00 in cash and 0.734 shares of AECOM common stock for each URS share. URS stockholders may elect to receive all cash or all stock consideration, subject to proration in the event of oversubscription. The election will be subject to a customary proration mechanism to achieve an aggregate consideration mix of approximately 59% cash and 41% AECOM common shares. The stock portion of the consideration is expected to be tax-free to URS stockholders.

AECOM stockholders will retain their shares following the consummation of the transaction. Upon completion of the transaction, URS stockholders will own shares that account for approximately 35% of the combined company, which will allow URS stockholders to participate in the prospects of a business that is well positioned to create long-term stockholder value.

AECOM expects the combination to be accretive to its GAAP earnings per share and more than 25% accretive to its cash earnings per share in fiscal year 2015, excluding transaction-related costs. AECOM also expects annual cost synergies of US$250 million, nearly all of which it expects to achieve by the end of fiscal year 2016. These synergy expectations are based on the due diligence and planning that have already been conducted. Including the realization of expected synergies, the approximately US$6 billion enterprise value of the transaction is less than 7x pro forma 2015 URS EBITDA.

The terms of the definitive agreement have been unanimously approved by the Boards of Directors of both companies. The transaction is subject to customary closing conditions, including regulatory approvals, approval by URS stockholders of the merger agreement, and the approval by AECOM stockholders of the issuance of shares in the transaction. The transaction is expected to close in October 2014.

AECOM will become one of the largest companies by revenue in the engineering and construction industry. The combined firm will be headquartered in Los Angeles and will be the largest publicly traded company in that city. AECOM also expects to maintain a key operational presence in San Francisco, where URS is headquartered.

Michael S. Burke will be the combined company’s chief executive officer, and the companies have designed a new operating management structure that will include proven senior leaders from both URS and AECOM. John M. Dionisio, AECOM executive chairman, will be chairman of the board and, at closing, AECOM will elect two URS board members to the AECOM Board of Directors.

“Building on AECOM’s experience of adding new skill sets and delivering them across our established global platform, we anticipate a smooth and seamless integration,” said Burke. “We are developing integration plans that will enable us to bring together the best of both organizations. The process will be led by executives of both companies.”

The combined company will be a premier, fully integrated infrastructure firm, serving clients across a broad range of markets, including transportation, facilities, environmental, energy, water and government. The two companies are world leaders in the infrastructure industry.

URS adds to AECOM’s construction capabilities, deepening a core competency that AECOM expects to leverage across its global platform. URS also brings strong sector expertise in important end markets, including oil & gas, power and government services.

Burke added, “The combination of AECOM and URS creates an industry leader with unsurpassed capacity to deliver integrated solutions across AECOM’s existing markets. We will have the ability to design and deliver major civil infrastructure projects in sectors such as transportation and water. In addition, we expect to seize opportunities to more broadly leverage our direct investment vehicle, AECOM Capital.”

Additional information about this transaction is available online at www.aecom-urs.com.

Ranked as a leading engineering design firm by Engineering News-Record magazine, AECOM (NYSE:ACM) is a premier, fully integrated infrastructure and support services firm, with a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees — including architects, engineers, designers, planners, scientists, and management and construction services professionals — serving clients in more than 150 countries around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural, and social environments. A Fortune 500 company, AECOM had revenue of $8.0 billion during the 12 months ended March 31, 2014. More information on AECOM and its services can be found at www.aecom.com.

URS Corporation (NYSE:URS) is a leading provider of engineering, construction, and technical services for public agencies and private sector companies around the world. The Company offers a full range of program management; planning, design and engineering; systems engineering and technical assistance; construction and construction management; operations and maintenance; management and operations; information technology; and decommissioning and closure services. URS provides services for federal, oil and gas, infrastructure, power, and industrial projects and programs. Headquartered in San Francisco, URS Corporation has more than 50,000 employees in offices in nearly 50 countries (www.urs.com)

Source: URS

Early Registration continues until 14 July for 8th Annual UT Dallas Project Management Symposium


Popular regional conference to focus on Maximizing the Value of Project Management

16 June 2014 – Richardson, Texas, USA – Early Registration remains open for the 8th Annual UT Dallas Project Management Symposium being held during August 14-15, 2014 in Richardson, Texas, USA.  The2 Day Project Management Symposium will be held in the NaveenJindal School of Management on the UT Dallas campus in Richardson, Texas, USA.  The theme of the 2014 symposium is “Maximizing the Value of Project Management”.

SOMThe popular 2-day project management conference is one of the highest quality regional project management conferences in the United States.  Each year the symposium focuses on topics relevant to industries in North Texas, including information technology, healthcare, professional services and others, this year all focused on the symposium theme – Maximizing the Value of Project Management.

Early registration with best price extends until 14 July 2014; discounted group pricing is also available. To register, see keynote speakers, view presenters’ abstracts and for additional information, go to pmsymposium.utdallas.edu

The symposium will include an Opening Ceremony and plenary session, professional paper presentations by approximately 40 different speakers, panel discussions, lunches and coffee breaks, a networking reception and a closing plenary session with keynote speaker and door prizes.   Participants can receive 16 PDUs for attending.

The annual UT Dallas Project Management Symposium is organized by the Project Management Program at The University of Texas at Dallas (UT Dallas), in cooperation with the PMI Dallas Chapter and the PM World Journal.  If you are a project manager or project management professional living in North Texas, plan to attend this world class symposium.  More information can be found at pmsymposium.utdallas.edu.

The Project Management Program at UT Dallas provides application-oriented education for professionals with significant project, program or general management responsibilities. Established in the Executive Education Center in UT Dallas’ Naveen Jindal School of Management, students have the option of earning a Graduate Certificate in Project Management, a Master of Science degree with an emphasis in project management, or a Master of Business Administration degree with project management emphasis.

The UT Dallas PM program, originally developed in 1997, is accredited by the Project Management Institute (PMI®) and is registered with the PMI Registered Education Provider Program (PMI R.E.P.). The program is taught by world-class faculty with a blend of industrial project management, consulting and teaching experience. UT Dallas’ PM Program in delivered both on campus and online, and attracts students from across the USA and worldwide. For more information, visit project.utdallas.edu.

The PMI Dallas Chapter is a volunteer-based professional association dedicated to supporting the growth and development of project management practitioners, as well as building awareness of the project management discipline and its critical role in business and organization success. With more than 350,000 members in over 180 countries, the Project Management Institute (PMI®) is the world’s leading membership association for project management. Founded in 1984 and with over 4,000 members, the PMI Dallas Chapter is one of the world’s largest PMI components.  To learn more about the PMI Dallas Chapter and its service offerings, visit www.pmidallas.org

The PM World Journal (PMWJ) is a global online publication produced by PM World in the United States, but created by a virtual team of contributors and editors around the world.  Each month, the PMWJ features dozens of articles, papers and stories about projects and project management in different countries and industries.  PM World also produces and maintains the PM World Library, a global resource for continuous learning in portfolio, program and project management.  To see the latest edition of the PMWJ, visit www.pmworldjournal.net; to learn more, visit www.pmworldlibrary.net.

Brazilian Project Managers issue Manifesto and Open Letter to International Community – decry government mismanagement of World Cup projects


13 June 2014 – Rio de Janeiro, Brasil – A group of senior project managers and professional leaders in Brazil have issued a manifesto to decry the Brazilian government’s mismanagement of the projects associated with the FIFA 2014 World Cup football tournament that got underway there this week.  Their manifesto follows as an open letter to the international project management community, without edit:

Open Letter to the International Community of Project Management

We are Brazilians and Project Managers. We belong to a broad community that now has hundreds of thousands of recognized professionals providing high quality services. We are well trained, skilled, internationally certified, experienced, seasoned and passionate about our work and we seek to be very competent.

The global exposure of a number of national issues, in particular, the world attention to the mismanagement of public projects, during the FIFA World Cup BRAZIL 2014 revealed the tip of an iceberg of massive governmental chronic problems, as well granted to all Brazilian professional project managers undeserved accusation of incompetence.

To lead the program of FIFA World Cup BRAZIL 2014 the federal government nominated political allies and renowned soccer players who, in most cases, lacked the necessary knowledge in general management and / or project management. Political, not technical, criteria guided these decisions. The setup of a Project management office, staffed with qualified professional was not even considered. The large community of Brazilian project management professionals was not heard, not even consulted in such projects. The results were admittedly catastrophic in terms of delays, bursting budgets, adjustments of scope and claims of corruption in the administration of contracts.  Despite the serious issues, Government denied the severity of the situation, betting that Brazilian citizens would soon forget the problems experienced as Brazilian Team wins the world cup.

The irresponsible and inefficient way in which public projects were managed is source of shame and frustration for us (except for few rare exceptions). This deeply vexatious circumstance cuts deeply our professional pride and postpones the Brazilian dream of access to full life of opportunities, proportional to the potential of our territory and human capital.

Trusting these considerations we launch this manifesto, aiming to redirect the governance of public projects in our country, in the sincere hope to foster better results, good management practices, ethical principles, democracy and citizenship.

We sign this letter today, nominating ten urgent changes we consider extremely necessary:

1) For ethics in public projects in the three government levels (municipal, state and federal), so that they are idealized, proposed and implemented under the primacy of social interest, at the expense of restricted groups interests that might influence government and private companies.

2) That the public projects in three instances (municipal, state and federal) are always supported by a robust strategic planning, aimed at the social, economic and human development of the country, where a clear prioritization of education, health, security and critical infrastructure are considered. Thus, programs such as the FIFA World Cup BRAZIL 2014 must pass to be in harmony with existing strategic initiatives or otherwise, will simply not be mentioned or executed.

3) The authorization of public projects bust be grounded in solid and credible business case and not fictitious and forged feasibility studies, that exaggerate the demonstration of benefits, but hide the real political motivation, or financial interests of dominant economic groups.

4) Professional project  managers, program managers  and portfolio managers must be appointed to led the portfolios of public projects in three levels (municipal, state and federal) without the interference of politics in the ethical conduction of their technical work.

5) All stakeholders must be heard and informed in a direct and transparent way, from the moment of evaluation of major projects and their justifications, through the release of its deliverables, by proper and regular status reporting, for the clarification about scope changes and baselines (scope, time and cost) and technical and independent reporting of final results achieved.

6) Problems in public Project must transparently communicated and corrective actions must Always be in place and be announced, ceasing policy of good excuses, denial of problems and “scapegoats”.

7) Major public projects must be audited impartially, independently and transparently by the Federal Court of Accounts (Supreme Audit Institution) which must have certified project management professional in their teams.

8) The law of bids for major public projects must be be enhanced, in the name of speed and efficiency, contemplating the introduction of requirements related to good practices of project management by contracted parties. This law must be strictly enforced in defense of the real interests of society.

9) A rigid policy of consequences must be in place and it must exclude from public bidding, companies involved in corruption. The professional project managers involved in corruption must lose their professional accreditations, and the politicians involved in corruption must lose their political rights and that both must be criminal and civil responsible for damage caused to society.

10) Governance mechanisms must be in place to ensure that the portfolio of public projects is no longer used as an instrument of electoral manipulation but effective in generating benefits and real value for Brazilian society.

Signing this letter,

Alonso Mazini Soler,

André Baptista Barcaui,

Américo Pinto,

Carlos Magno da Silva Xavier,

Carlos Eduardo Freire Gurgel,

Fabiana Bigão Silva,

Farhad Abdollahyan,

José Finocchio Jr.,

Luiz Fernando da Silva Xavier,

Mauro Afonso Sotille,

Osmar Zózimo de Souza Jr.,

Paulo Keglevich.

38 new works by 45 authors added to PM World Library


PM World Collection grows to 834 project management articles, papers & other works by 451 different authors in 56 countries

9 June 2014 – Dallas, London, Sydney – PM World has announced that 38 new articles, papers, reports and other original works about program and project management (P/PM) were added to the PM World Library (PMWL) on June 6.  These contributions by 45 different authors in 17 countries were published in the June 2014 edition of the PM World Journal (PMWJ).  They can now be found among the most recent papers, articles and book reports on the PMWL home page at www.pmworldlibrary.net.

The new additions bring the total in the PM World Collection to 834 original works by 451 different authors from in 56 countries.  The collection is growing each month by 35-40 new works by many different authors.  Of the 45 authors in June, 18 were new to both the PMWJ and PMWL.  All works in the PMWL can be accessed at http://pmworldlibrary.net/pm-world-collection/.  Profiles of all authors in the library, along with access to their works, can be found at http://pmworldlibrary.net/author-showcase/.

david-pellsAccording to PMWL Director David Pells (pictured), “We are happy to see so many new authors each month, and to have returning authors contribute new works. The program/project management field is continuing to grow as it spreads to new industries, organizations and countries.  Getting more experienced practitioners and experts to share their knowledge can help accelerate the process, while creating value for authors and readers alike.”

“We hope readers will support our authors, read their works and offer some feedback,” Pells adds.  “Most author profiles at the end of their articles contain an email address.  If not, readers can email a letter-to-the-editor to me, which we can share with the author and publish for all to see.”

New authors in May include Prof Ayman Abu-rumman (Jordan), Prof Charlampos Apostolopoulos (UK), Dr. Maulik Baxi (Canada), Clara Berdini (Italy), Jason Bird (USA), Dr. Robert Chapman (UK), W. Brent Cook (USA), Antony della Porta (UK), Prof George Halikias (UK), Brad Hermanson (USA), Jerry Ihejirika (Nigeria), Alicia Lanier (USA), Shobha Mahabir (USA), Prof Krikor Maroukian (UK), Lunga Msengana (South Africa), Mark Phillips (USA), Shailaja Suresh (India) and Prof George Tsaramirsis (UK/Saudi Arabia).  New works from 26 authors already included in the library were also added.

In addition to original papers, 59 news articles were added to the library archives this month, bringing that total to around 1,000 articles.  News archives can be accessed at http://pmworldlibrary.net/ppm-news/.

The PM World Library (PMWL) is a global resource for continuous learning in portfolio, program and project management (P/PM).  The PMWL is produced and maintained by PM World that also publishes the monthly PM World Journal (PMWJ), a web-based monthly publication featuring dozens of articles, papers and news stories about projects and project management around the world.  To see the latest edition of the PMWJ, visit www.pmworldjournal.net; to learn more, visit www.pmworldlibrary.net. Follow on Facebook, LinkedIn or @pmworldlibrary.

2nd Edition of award winning Project Quality Management book by Kenneth Rose released by J. Ross Publishing


22 May 2013 – J. Ross Publishing has announced the publication of Project Quality Management: Why, What and How, Second Edition by Kenneth H. Rose, PMP.  Project Quality Management, recipient of the 2006 PMI® David I. Cleland Project Management Literature Award in its first edition, offered project managers a specific, succinct, step-by-step project quality management process found nowhere else. It has now been updated and enhanced to also meet the needs of trainers, college instructors, and their students! Course instructor material is now also available.

140522-pmwj23-rose-IMAGEProject Quality Management: Why, What and How, Second Edition demonstrates how to implement the general methods defined in A Guide to the Project Management Body of Knowledge—Fifth Edition (PMBOK® Guide) and augments those methods with more detailed, hands-on procedures that have been proven through actual practice. This edition presents case examples that illuminate the theory of quality planning, assurance, and control with real-world narratives, including situation, analysis, and lessons learned. It also provides course discussion points and practical exercises at the end of each chapter.

Award-winning author Kenneth H. Rose has more than 35 years of hands-on experience in high technology development and project management and in the development and implementation of quality improvement programs, innovative performance measurement procedures, and strategic plans. He is also an experienced trainer in project management, organizational development and leadership.  Mr. Rose is an active member of Project Management Institute, Certified Project Management Professional (PMP®), and serves as book review editor of Project Management Journal. He is a former senior member of the American Society for Quality and ASQ Certified Quality Manager. Mr. Rose is also a life member of the National Defense Industrial Association where he served as past chairman of the robotics division.

More about this book can be found at http://www.jrosspub.com/business/project-program-management/project-quality-management-second-edition.html.

J. Ross Publishing is an innovative and cutting-edge publisher of applied professional, business and technical books, multimedia, and online products for global professional markets.  At J. Ross we collaborate with industry leaders to provide critical and timely information that will keep today’s professionals on top of new and important advances in their fields. Our mission is to publish products that solve real-world challenges and offer insight into new and effective practices. The J. Ross Web Added Value Download Resource Center allows book buyers to access value-added materials that supplement and enhance their learning experience — giving them the opportunity to apply what they’ve learned.  Visit www.jrosspub.com.

Source: J. Ross Publishing

IPMA recognizes Dr. Rodney Turner as Honourary Fellow at the 26th IPMA World Congress

6 November 2012 – International Project Management Association (IPMA) recognizes, as IPMA Honourary Fellows, those persons who over a period of many years render exceptional service for IPMA and/or to the practice and theory of Project Management. Candidates for honourary fellowship are nominated by IPMA Member Associations, evaluated and recommended by the IPMA Executive Board, and elected by the Council of Delegates.

During the IPMA World Congress Gala Awards on 30 October 2012, the selection of Professor Rodney Turner as an IPMA Honourary Fellow was announced by IPMA President Roberto Mori in recognition of Professor Turner’s contribution to IPMA and our profession over many years.

IPMA President Roberto Mori, left, announces the award to Professor Turner, right.

 A summary of achievements

Professor Turner is well-known as the executive editor of the International Journal of Project Management. Having served as IPMA President 1999 – 2000 and Chairman of the IPMA Council of Delegates 2001 – 2002, Professor Turner continues to serve IPMA and the profession of project management. He has also held numerous positions through which he has contributed to the further development of project management nationally as well as internationally. Professor Turner is Vice President, Honorary Fellow and former chairman of the UK Association for Project Management (APM).

Professor Turner was nominated by APM, who followed a stringent set of IPMA criteria in making a complete and exemplary nomination. Highlights of Professor Turner’s cited contributions include the following.

Activity as researcher and author

Professor Turner’s extensive research has a particularly strong recent focus on leadership styles appropriate to project management. Rodney Turner is the author or editor of some fifteen books, including The Handbook of Project-based Management, the best selling book published by McGraw-Hill, and the Gower Handbook of Project Management. He has written many articles for journals and conferences, including IPMA Congresses.

His magazine contributions include Project Management Today which has recently benefited from an extended series of introductory articles to the profession, for example. He lectures on and teaches project management worldwide, from China to Canada, from Australia to Austria. He serves as International Editorial Advisor for PM World Journal

International contributions

From 1999 to 2002, Professor Turner was President and then Chairman of the International Project Management Association (IPMA), the global federation of national associations in project management, of which APM remains the largest member. He has helped to establish the Benelux Region of the European Construction Institute as foundation Operations Director. He was amongst the early project managers who recognized the emerging potential of the Chinese economy, and has lectured extensively in China, as well as published in that market.

Contribution to the profession

It is perhaps Professor Turner’s Editorship since May 1993 of the International Journal of Project Management (IJoPM), the leading academic research journal in the field, which best defines his contribution to the profession, both nationally and internationally. The publisher Elsevier is the world’s leading publisher of academic research journals, publishing some 40% of all those published.

It is highly appropriate that during 2009, IJoPM received a unique accolade by being admitted to the Thompson World of Science Social Science Citation Index (formerly known as ISI).

Up until that point, none of the now four research journals in project management had been in ISI-listed, which meant that academics in the field of project management had to publish their work elsewhere. Detractors in other academic disciplines could observe that no project management journals were in ISI. This could be used as a reason for saying that project management was not a proper academic discipline.

IJoPM’s admission into ISI now gives recognition of project management as a proper academic discipline and provides academics in the field of project management with an outlet for their research papers which will be recognized in the achievement of their annual performance objectives and their career progression. This is a defining moment for the profession, as it is universally recognized that a strong academic community is important to the development of project management as a profession, As Dr Young Hoon Kwak, Associate Professor of Project Management at The George Washington University’s School of Business put it: “This is one small step for IJoPM; one giant step for project management”. The achievement of admission into ISI was compounded in July 2012 by IJoPM’s Impact Factor being confirmed as 1.532, a highly creditable outcome.

A salute

The International Project Management Association salutes Honourary Fellow Professor Rodney Turner for his contributions to our profession, and to society.

Founded in 1965 and registered in Switzerland, International Project Management Association (IPMA) is the oldest global project management professional organization. IPMA is an international federation of more than 50 national project management societies in Africa, Asia, Europe and the Americas. The IPMA World Congress is one of the largest and most important gatherings of project management authorities and leaders each year. The president of IPMA for 2011 and 2012 is Mr Roberto Mori. For further information please navigate to www.ipma.ch .

News Item with contributions by Jouko Vaskimo, Miles Shepherd and Stacy Goff

Photographs by Jouko Vaskimo

IPMA Contact: Stacy Goff, VP Marketing & Events, [email protected]