KBR Awarded Global Contingency Services Multiple Award Contract with U.S. Navy

Rhea-AI Summary

KBR has been awarded a $2 billion contract by the U.S. Navy for global contingency services, lasting 8.5 years. The contract aims to provide critical support for U.S. Navy facilities worldwide, including IT support, force protection, healthcare, and more. KBR's expertise in supporting the military positions them well to fulfill the Navy's needs efficiently.

Positive

• KBR's award of the $2 billion contract by the U.S. Navy showcases their strong reputation and expertise in providing global contingency services.

• The contract period of 8.5 years ensures a steady revenue stream for KBR, contributing to the company's financial stability and growth.

• KBR's experience in supporting the U.S. military worldwide and their emphasis on the Indo-Pacific region positions them favorably to expand support to the Navy in INDOPACOM.

Negative

• While the contract presents significant opportunities for KBR, the competition on IDIQ task orders may pose challenges, affecting their ability to secure consistent task orders.

• Dependence on government contracts, like the GCSMAC III, exposes KBR to potential risks related to budget cuts, changing government priorities, or contract cancellations.

HOUSTON, May 6, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today it has been awarded a multiple award, Indefinite Delivery Indefinite Quantity (IDIQ) contract by the U.S. Naval Facilities Engineering Systems Command for global contingency services.  

Under the Global Contingency Services Multiple Award Contract (GCSMAC) III, KBR will compete on IDIQ task orders to provide mission-critical support to U.S. Navy facilities around the world. The contract period begins April 2024 and lasts 8.5 years, with a current ceiling value of $2 billion. The task orders are expected to be a combination of cost-plus-award-fee and firm fixed price. The purpose of the contract is to provide short-term facility support services in support of natural disasters, humanitarian efforts, military actions, and to cover incumbent contractors' nonperformance or potential breaks in service at various locations throughout the world. Tasks may include IT support and management, force protection, airfield and port operations, healthcare support, fleet and family readiness, utilities and transportation, among other support services.

"KBR understands how critical the U.S. Navy's mission is to safety and security around the globe," said Byron Bright, KBR Government Solutions U.S. President. "With our decades of experience supporting the U.S. military worldwide, KBR leverages our global supply chain, agile workforce and rapid deployment capabilities to respond to the Navy's needs and to conduct contingency operations anywhere in the world. And with a growing emphasis on the Indo-Pacific region, KBR is positioned to expand support to the Navy in INDOPACOM."

KBR currently supports the Naval Facilities Engineering Systems Command at key locations around the globe, including Bahrain, Djibouti, the United Arab Emirates, Poland and Diego Garcia. Under the current GCSMAC II contract, KBR supports base operations at a missile site in Poland and conducted humanitarian relief operations for Afghan refugees in Quantico, Virginia, in 2021. KBR also provides global contingency and expeditionary support to the U.S. Army under the Logistics Civil Augmentation Program (LOGCAP) and the U.S. Air Force under the Air Force Contract Augmentation Program (AFCAP). In addition to managing billions of dollars of government assets around the globe as part of KBR's Army and Marine prepositioned stock services, KBR supports worldwide military exercises for the U.S. Army, Navy and Marines.  

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 performance, demand, task orders and pricing structures, 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 the contract awarded to KBR by the U.S. Navy?

KBR has been awarded a contract with a current ceiling value of $2 billion.

What is the purpose of the Global Contingency Services Multiple Award Contract (GCSMAC) III?

The purpose of the GCSMAC III contract is to provide short-term facility support services in response to natural disasters, humanitarian efforts, military actions, and to cover incumbent contractors' nonperformance.

Where will KBR provide services under the new contract with the U.S. Navy?

KBR will compete on IDIQ task orders to provide mission-critical support to U.S. Navy facilities worldwide.

What services may be included in the task orders under the contract?

Tasks under the contract may include IT support and management, force protection, airfield and port operations, healthcare support, fleet and family readiness, utilities and transportation, among others.

What regions does KBR currently support the Naval Facilities Engineering Systems Command in?

KBR currently supports the Naval Facilities Engineering Systems Command at key locations around the globe, including Bahrain, Djibouti, the United Arab Emirates, Poland, and Diego Garcia.