Welcoming in this New Year, I wish you all good health and happiness. The Ahtna family of companies has seen remarkable growth over the past five years. Since 2015, we have seen a seven-fold increase in our stockholder equity, an eleven-fold increase in our working capital, and a six-fold increase in our bonding capacity. Our revenues are expected to increase by 50% over 2015. One Team, One Ahtna makes these accomplishments possible. Thank you to all of our employees who have constantly pivoted to the COVID challenges in our offices, on projects and with our customers.
As shared in the article here, we have been working hard to keep our employees, their families and the communities that we work in safe. Shareholder employee Jamie Ginn helped to implement stringent COVID-19 safety protocol programs for two of our subsidiary companies that provide essential services. The majority of staff in our Corporate offices have been working remotely since last March, but some of our project staff must go out in the field to multiple sites to provide services that are vital to the health, safety and security of our state and country. These projects required staff to travel during the summer field season to far reaches of the state that are not accessible by road. I appreciate everyone who was involved in making sure we were well prepared to safeguard these employees and those they interacted with.
Congratulations to Ahtna Environmental, Inc. (AEI) on being selected as a 2020 Society of American Military Engineers (SAME) Small Business Awardee, and to Ahtna Global, LLC for their 2020 Association of General Contractors’ safety award win! These are momentous honors and a testament to our outstanding service to our clients, our safety excellence and the commitment to the professional development of our employees. AEI has been a tremendous contributor to Ahtna with strong shareholder hire, safety emphasis, and revenues of approximately $347 million over the past nine years. You can read more about AEI’s win here and AGL’s win here.
The year ended on a high note for our subsidiaries with a flurry of new contract announcements. Bonded construction and environmental work continue to be areas with the most growth. AES will be performing environmental remediation for the U.S. Army Corps of Engineers (USACE) Omaha District with Joint Venture (JV) partner Bay West, a nationally recognized environmental consulting and remediation company. The 5-year $176 million contract will be shared with 8 other firms. The contract represents our second environmental Indefinite Delivery/Indefinite Quantity (IDIQ) contract win with the Omaha District and will help to build momentum to expand our work in the Great Plains.
Ahtna Marine & Construction Company, LLC (AMCC) recently received its 8(a) certification and will soon begin work on a new $3 million USACE Okeechobee Waterway Dredging project. The Jacksonville, Florida project is very close to AMCC’s yard, which created a competitive bidding advantage as our mobilization costs were much lower than other bidders.
A satisfied customer is our best advertisement!
“The contractor’s performance and quality of work exceeded United States Army Forces Command (FORSCOM) expectations, during the time period that the U.S. Army instituted a “Stay at Home” policy to combat the COVID-19 pandemic.”
-Ft. Bragg Combat Training Centers (CTC) Contract: Contractor Performance Assessment Report (CPAR)
“You folks have always been great partners through the many years we’ve worked together. The growth in terms of capability and capacity attained through durable relationships with ANCs like Ahtna is one of the things I am most proud of as it means jobs and improved conditions for your shareholders and Alaskans in general. I hope many more years of partnership remain ahead of us.”
-Christopher A. Tew
Chief, Contracting Division
U.S. Army Corps of Engineers
Alaska District, Pacific Ocean Division
Ahtna’s IT Department is working on a self-assessment of our cybersecurity hygiene. With many Ahtna employees now working remotely, our IT team has had to rapidly evolve to a completely different business environment to meet access, security and equipment needs. Threats have increased exponentially for companies with the shift to employees working outside the office. Much like an individual engages in certain personal hygiene practices to maintain good health and well-being, cyber hygiene practices can ensure data is kept safe and well-protected from theft and outside attacks. This assessment is a step towards obtaining Cybersecurity Maturity Model Certification which will be required as a qualifier for Department of Defense (DoD) contracts by 2026.
We are working with the Ahtna Land Department and our partner Stantec to explore rural energy project opportunities with the Department of Energy (DOE). Stantec is an engineering and consulting firm with over 20,000 employees worldwide. They bring a wealth of knowledge and sustainable energy experts to the table. We are looking into grant opportunities with the DOE and Bureau of Indian Affairs to conduct studies of wind power potential at Willow Mountain and the feasibility of retrofitting the headquarters building to Liquified Natural Gas (LNG). We will also be learning more about DOE’s Energy Technology on Tribal Lands and Energy Infrastructure on Tribal Lands programs, which are aimed at reducing high energy costs in rural America.
Navigating the new business world will continue to be a challenge in 2021, but we will maintain our outstanding safety focus and shareholder engagement while fulfilling contracts at full force. The strategic partnerships we formed in 2020 have opened new doors and will expand our work globally. Our subsidiary companies and Ahtna, Inc. personnel are really performing and are truly committed to “One Team, One Ahtna.” This is the team that delivers.
I hope you had a wonderful holiday season and wish you continued health and safety in the new year.
Tom Maloney, Chief Executive Officer