KBR Health and Human Performance Expertise Recognized with Multiple-Award Contract Worth $43 Billion

Rhea-AI Summary

KBR has been chosen as one of 11 awardees for a $43 billion multiple-award contract by the Defense Health Agency to provide health and wellness support for military personnel and their families. Under the Medical Q Coded Support and Services Next Generation (MQS2-NG) contract, KBR will bid on task orders to supply dental, physician, and nurse medical services at Department of Defense Military Treatment Facilities (MTFs) across the U.S. and strategic overseas locations. The contract runs from 2024 to 2034, with options, enhancing KBR's long-standing commitment to supporting military and NASA personnel.

Positive

• Awarded $43 billion multiple-award contract by the Defense Health Agency.
• Opportunity to bid on task orders to provide health and wellness support.
• Contract duration of 10 years, from 2024 to 2034, ensuring long-term revenue.
• Supports MTFs across continental U.S. and strategic overseas locations.
• Expands KBR's health and human performance services.
• Continues KBR's five decades of support for military and NASA personnel.

Negative

• Contract is indefinite-delivery/indefinite-quantity, implying no guaranteed revenue.
• Competition with 10 other awardees for task orders may limit actual earnings.
• Potentially high operational costs managing and staffing MTFs.
• Execution risk over a 10-year contract period.

Financial Analyst

KBR's inclusion in the $43 billion MQS2-NG contract signifies a substantial long-term revenue opportunity. This contract is 43 billion over 10 years, providing KBR with a steady stream of work. KBR's ability to secure this contract showcases their strong position in the defense health services market, which strengthens their portfolio. This could positively impact KBR's revenue and profitability, reflecting positively on their stock value.

It's essential to consider that KBR will need to bid on specific task orders; thus, actual revenue might be lower than the ceiling value. Investors should monitor the company’s success rate in winning these task orders. Additionally, the 10-year period offers stability but requires sustained performance and adaptability to new requirements.

In sum: If KBR effectively capitalizes on this contract, it can provide significant financial stability and growth.

Market Research Analyst

This contract extends KBR’s footprint in the defense health services sector, underlining their capability and expertise. The recognition by the Defense Health Agency highlights their reputable standing in the market.

KBR's historical performance with similar contracts, like the NASA and POTFF agreements, suggests they have the background to deliver quality services. This historical context offers confidence that KBR can manage the demands and expectations of the MQS2-NG contract effectively. Additionally, this positions KBR well against competitors, potentially attracting further contracts and partnerships.

For investors: It's a vote of confidence in KBR’s market strategy and execution capabilities, which can foster long-term growth and stability.

Healthcare Management Expert

The MQS2-NG contract involves managing and staffing Medical Treatment Facilities (MTFs) for the U.S. military, which is a complex task requiring robust operational and healthcare management expertise. KBR's existing contracts, particularly with NASA and the U.S. Special Operations Forces, demonstrate their capability to work in high-stakes environments.

From a healthcare management perspective, KBR's success largely depends on their ability to recruit, train and retain skilled healthcare professionals. The company's experience with similar contracts suggests they have mechanisms in place to handle these challenges effectively.

For stakeholders: If KBR maintains high standards, this can enhance their reputation and open up further opportunities in the healthcare support services sector.

HOUSTON, May 23, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today it has been selected as one of 11 awardees for a multiple-award, indefinite-delivery/indefinite-quantity contract by the Defense Health Agency to provide health and wellness support for military personnel and their families. KBR will have the opportunity to bid on task orders under the Medical Q Coded Support and Services Next Generation (MQS2-NG) contract, which contains a ceiling of $43 billion.

Under the terms of the MQS2-NG, KBR would help provide dental, physician and nurse medical support services for Department of Defense Military Treatment Facilities (MTFs) located throughout the continental United States and strategic overseas locations. This work has a period of performance of 10 years with options from 2024 through 2034. It includes managing and staffing MTFs around the country to support the treatment, recovery and well-being of U.S. service members and their families.

"The MQS2-NG contract expands upon KBR's dedication to supporting military personnel and their loved ones by improving their resilience and well-being," said Byron Bright, Government Solutions U.S. President. "We are thrilled to have a chance to expand our health and human performance services and see the positive impact on the quality of care for our service members and their families."

MQS2-NG is a continuation of KBR's five decades of vital health services support to individuals who perform in complex and multifaceted positions, including hundreds of astronauts via NASA's Human Health and Performance Contract (HHPC) and the U.S. Special Operations Forces as a part of the military's Preservation of the Force and Family (POTFF) contract.

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 options, 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?

The contract has a ceiling value of $43 billion.

How long is the period of performance for KBR's new contract?

The period of performance is 10 years, from 2024 to 2034.

What kind of services will KBR provide under the MQS2-NG contract?

KBR will provide dental, physician, and nurse medical support services.

Where will KBR deliver these health and wellness services?

Services will be provided at Department of Defense Military Treatment Facilities across the U.S. and strategic overseas locations.

How does the MQS2-NG contract align with KBR's past projects?

The contract continues KBR's long-term support for military and NASA personnel, building on five decades of experience.