KBR Awarded Follow-On Task Order Supporting B-52 System Program Office

Rhea-AI Summary

KBR has secured an $82 million cost-plus-fixed-fee task order from the United States Air Force for the Air Force Life Cycle Management Center to support the B-52 System Program Office at Tinker AFB, Oklahoma. This contract, under the IAC MAC, spans five years and covers areas such as reliability, maintainability, quality, supportability, and interoperability (RMQSI) issues. KBR will focus on system and structural sustainability, component testing, cybersecurity, and obsolescence. Tasks also include reliability analysis, development of non-destructive inspection techniques, and maintenance procedures. KBR highlights its ongoing 8-year involvement with the B-52 program and reinforces its strategic partnership with the Department of Defense.

Positive

• KBR secured an $82 million task order, indicating strong revenue generation.
• The contract reinforces KBR's 8-year presence in the B-52 program, showcasing stability.
• Inclusion of cybersecurity support emphasizes growth in service offerings.
• The 5-year contract provides long-term financial and operational stability.

Negative

• Cost-plus-fixed-fee contracts can limit profit margins due to fixed fees.
• Potential delays or issues in delivering complex tasks could impact project timelines.
• Dependence on a single government contract may pose risks if future awards are not secured.

News Market Reaction

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On the day this news was published, KBR declined 0.38%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

HOUSTON, June 6, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced it has been awarded an estimated $82 million cost-plus-fixed-fee task order under an IAC MAC contract by the United States Air Force (USAF) for the Air Force Life Cycle Management Center. The center supports the B-52 System Program Office (AFLCMC/WBD) P1-22-2367 at Tinker AFB, Oklahoma.  

Under the terms of the contract, KBR will continue to address areas such as reliability, maintainability, quality, supportability and interoperability (RMQSI) issues and impact, system sustainability, structural sustainability, component and subsystem testing, obsolescence and diminishing sources, and cybersecurity. Tasks include reliability analysis, development of non-destructive inspection (NDI) and test techniques, and development of maintenance procedures and techniques, and analysis tools for reliability data. KBR will address Department of Defense critical technologies areas. This work will be performed over a period of five years.

"KBR is proud to support the USAF to extend the life of the B-52 and similar legacy defense systems," said Byron Bright, President of Government Solutions U.S. "We understand the importance of these critical assets and this work directly reflects our strategic commitment to remaining a key partner to the Department of Defense."

KBR maintains its solid eight-year presence in the B-52 program office with the win of this recompete. This task order epitomizes KBR's ability to grow with current customers, not only with significantly increased value, but also with the addition of cybersecurity support to the scope.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 35,000 people worldwide with customers in more than 80 countries and operations in over 30 countries.

KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com

Forward Looking Statements

The statements in this press release that are not historical statements, including statements regarding future contractual performance and growth, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks, uncertainties and assumptions include, but are not limited to, those set forth in the company's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks and other U.S. Securities and Exchange Commission filings, which discuss some of the important risks, uncertainties and assumptions that the company has identified that may affect its business, results of operations and financial condition. Due to such risks, uncertainties and assumptions, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

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SOURCE KBR, Inc.

FAQ

What is the value of KBR's new task order with the USAF for the B-52 program?

The task order is valued at an estimated $82 million.

Which organization awarded KBR the task order for the B-52 System Program Office?

The task order was awarded by the United States Air Force Life Cycle Management Center.

What are the key focus areas of KBR's new task order for the B-52 program?

The focus areas include reliability, maintainability, quality, supportability, interoperability, system sustainability, structural sustainability, component testing, and cybersecurity.

How long is the duration of the task order awarded to KBR for the B-52 program?

The task order will be executed over a period of five years.

What is the significance of KBR's involvement in the B-52 program?

KBR's involvement signifies its strategic partnership with the Department of Defense and its capability to support critical defense assets.