Bob Pragada
President & Chief Operating Officer at Jacobs Solutions
Thank you, Steve. Moving on to Slide 7 to review Critical Mission Solutions. The CMS business continued its strong performance in the third quarter with total backlog increasing 7% on a reported basis in reported and pro forma basis to $10.2 billion. Our CMS strategy is focused on creating resilient recurring revenue growth and margin expansion by offering technology-enabled solutions aligned to critical national priorities. Our service and solution offerings are delivered across our core customers markets, space, national security, cyber intelligence and energy environment. And we are leveraging our growth accelerators of data solutions climate response in consulting and advisory to catalyze the business.
We have substantial revenue visibility as approximately 85% of CMS' portfolio consists of large enterprise contracts with durations greater than four years and 88% from federal level government funding. Although economic and geopolitical uncertainties continue, our strong Q3 ending backlog gives us confidence in our next 12-month forecasted revenue. Three market trends that we see contributing to our continued growth include space debris management, robotics and 5G network buildup.
Beginning with space debris management, decades of space travelers resulted in large amounts of space debris damage today's satellites and future launches, adding to the cost of operating satellite and other space platforms, like the International Space Station or ISS. If debris destroy the satellite, it can take months and cost hundreds of millions of dollars to restore the service. We support the orbital debris tracking program at NASA and provide Bloom analysis in communication systems, simulation for vehicles visiting the ISS.
In addition, we provide media tracking data from multiple government agencies. Space retracking is one of many services Jacobs provides on the recently awarded Jonathan Engineering Technology and Science or JETS II contract with builds on Jacobs, more than 17 years of continuous support at Johnson Space Center. Under this contract, we will provide multi-disciplinary technical services to support the future of human space exploration, as well as help NASA incubate the emerging commercial space economy. This 10-year $3.9 billion win will book in Q4 and represents a $1.8 billion increase to our existing contract. This serves to illustrate the continuing strong NASA and Jacobs partnership.
Moving on to robotics. We are increasingly delivering value solutions to our clients by utilizing robots that reduce cost and increase accuracy and safety and otherwise manual human processes. And we're excited to announce the last quarter, we integrated the Resolve Robotics team in the U.K. into CMS to bring software expertise and IP to help accelerate our growth. Our existing CMS robotics team already delivers groundbreaking innovations, developing and deploying robotic systems in challenging environment, such as the robotic tool to retrieve stand like debris from inside of damaged nuclear reactor at Fukushima in Japan. Autonomous systems to map Riverbed's for the British Army and designing robotics systems for ITER, the world's largest fusion power experiment.
Finally, demand for 5G telecommunications. Our Telecom Group provides core solutions for the deployment of next-generation wireless and wireline networks for leading telecommunication companies, like AT&T, Verizon and T-Mobile, as well as Fortune 1,000 healthcare and commercial companies looking to build their own 5G networks. We also support the infrastructure market, providing 5G integration, network optimization and technical services alongside our P&PS teams to accelerate growth. While rollout of 5G infrastructure deployment is still in its early ramp phase, we continue to see increased demand for both integrated 4G and 5G solutions from our commercial telco, infrastructure, healthcare and government clients.
During the quarter, our Telecom Group added several new awards, totaling more than $150 million to deliver projects advancing 5G nationwide. We are excited for the team's recent successes and are well positioned for growth as adoption of 5G used cases and penetration growth. In summary, we continue to see solid demand for our CMS solutions. Last week we were notified that we were awarded a $470 million six-year cyber intelligence related task order which we expect to benefit and begin ramping at the end of this current quarter. The sales pipeline remains robust with the next 24-month qualified new business pipeline at approximately $25 billion, including $10 billion in source selection with an expanding margin profile.
Turning to Slide 8. During the quarter, People & Places Solutions delivered record setting quarterly bookings that top pre-pandemic levels. We also enjoyed year-over-year bookings growth of 11% and backlog growth of 13%, delivering a high mark for operating profit in the quarter. Despite macroeconomic concerns, we performed well due to the balance of public and private sector clients with a multinational focus, resulting in continued high percentage of revenue already booked in backlog. As I talk about the quarter, I'll address our four ongoing themes of supply chain diversification, infrastructure modernization, climate response and data solutions.
Starting with supply chain diversification. With continued breakthroughs in biotechnology, strong customer demand and robust operating cash flow, life sciences clients are investing in manufacturing expansion and contract operations capacity growth. As a leader in the market, tier 1 clients have confidence in Jacobs ability to deliver highly complex greenfield and expansion projects at speed to provides time to market for a client that maximizes their competitive advantage in new therapeutic.
Growing health service needs are leading to innovative approaches to care. We are optimizing facilities for clients such as the University of Iowa Hospitals and Clinics where we serve as their project delivery partners. We are improving sustainability access and energy efficiency for NHS Scotland, as well as increasing much needed access to critical mental healthcare in Australia. We continue to see robust demand for semiconductor chips, data center capacity expansion and growth in the electric vehicle market and the secured recent confidential wins in all three categories. On top of strong secular demand for semiconductors, we are pleased to see the passing of the $53 billion U.S. chips bill, which will incentivize investment in U.S. semiconductor manufacturing and specialized tool.
Infrastructure modernization. Increased client investments in mega and giga scale infrastructure continues. And with our number one in our ranking and program management, our delivery reputation has been a key differentiator and staying ahead of our clients' needs in the dynamic global environment. We recently have been awarded several strategic full lifecycle programs for new transformative scale cities in the Middle East. So we'll address social economic and climate priorities and you have flexible and long-term contracting vehicles. With a renewed interest in equitable sustainable transportation, we are experiencing a significant investment in the transit and rail sector with wins across the globe, such as Irish Rail, British Railways, multiple clients in Australia and resilient transit planning for Sacramento area Council of governments here in the U.S.
The Infrastructure Investment in Jobs Act is resulting in a steady increase in new project awards to modernize and increase the resiliency of U.S. infrastructure. For example, we won a major water supply resilience program for Eastern New Mexico Water Utility Authority. A five-year storm water implementation program for the City of Baton Rouge and a funding strategy with Oklahoma City. Additionally, our IIJ advisory team is positioning our clients to win funding opportunities with over 50 differentiated grant applications across transportation, water and energy. We anticipate additional awards in the coming quarters as the opportunities in our sales pipeline moving to the next phase of procurement.
Moving to climate response. We see our clients continuing to invest in clean energy across all sectors with primary spend related to grid modernization, cost effective renewable energy generation in EV charging infrastructure or our EVCI. A progress in these areas is demonstrated globally. In Asia through advisory and policy consulting for the Asian Development Bank in Canada with the pipeline utility program, in Australia through transmission and distribution design projects with AusNet Services and in the U.S. via new consulting and advisory framework to advanced energy transition with a leading provider. Transportation electrification and [Technical Issues] charging infrastructure plans have topped our clients' agenda across all regions for aviation, port, highways, and rail and transit. This includes projects for Heathrow Airport in the U.K. to implement landside EVCI or Ohio DoT statewide EV infrastructure program and in major U.S. Transportation Authority transitioning operations to zero emissions for one of the world's largest bus freight by 2040. Collectively, this is a very exciting space for it and align strongly with our climate response accelerator.
Moving to data solutions. We are using advanced data analytics to optimize our clients' decision making as well as their ability to derisk long-term investment. For example, in collaboration with the California Air Resources Board, our StreetLight Data team is using advanced analytics to better measure and manage transportation emission. We are also continuing our technology consulting support for a U.S. state DoT with integrated quarter management, connected automated transportation systems and other advanced mobility solutions to maximize use of their existing transportation infrastructure.
In the water market, we are awarded a contract with the Water Research Foundation and develop the first full-scale deployment of machine learning predictive control for wastewater systems, a new technology to advance the global water industry. Our cyber and digital services teams were awarded projects in support of the operational technology resiliency plan for a major U.K. utility network operator. And in Australia, we have secured the digital and data advisory services go to support advanced analytics across Brisbane City Council's entire asset lifecycle.
In summary, our strong sales pipeline supported by well-funded government budgets to modernize their infrastructure and commercial clients that are addressing secular growth opportunities. The agility of our global workforce combined with elevated spend on transformative complex infrastructure, uniquely positions us to deliver differentiated value to our clients. Given these dynamics and the business [Technical Issues] our revenue in backlog, we are excited in the growth trajectory for our People & Places business, both now and into the future. As Steve mentioned, we are impressed with PA's strong results, which underscores the strategic logic for our investment.
We're excited to be joined by PA CEO, Ken Toombs to provide a quarterly update. Ken, over to you.
