KBR Awarded $140 Million Follow-on Task Order Supporting the Air Force Life Cycle Management Center

Rhea-AI Summary

KBR has been awarded a $140 million follow-on task order to support the Air Force Life Cycle Management Center (AFLCMC). The 60-month cost-plus-fixed-fee recompete contract involves providing operational safety, suitability, and effectiveness engineering tasks. KBR will continue its work on F-16, A-10, and T-38 aircraft programs at Hill Air Force Base and other U.S. Air Force locations.

The company will assist in digital transformation initiatives, system engineering, and integration support for various systems. KBR will also develop prototypes for critical safety hardware using rapid prototyping capabilities. This contract reinforces KBR's long-standing partnership with the U.S. Air Force in providing sustainment engineering solutions and improving mission readiness.

Positive

• Secured a $140 million contract with the U.S. Air Force
• 60-month contract duration provides stable revenue stream
• Continuation of long-term partnership with the U.S. Air Force
• Involvement in digital transformation initiatives for key aircraft programs
• Opportunity to develop prototypes for critical safety hardware

Negative

• None.

Insights

Financial Analyst

KBR's $140 million task order recompete win is a positive development, demonstrating the company's strong positioning in the defense sector. This 60-month contract provides stable revenue visibility and reinforces KBR's long-standing relationship with the U.S. Air Force. The cost-plus-fixed-fee structure offers some protection against cost overruns, potentially supporting profit margins.

While the contract value represents a relatively small portion of KBR's annual revenue (approximately 1.5% based on 2023 figures), it contributes to the company's backlog and supports its Government Solutions segment. Investors should note that such contract wins, especially recompetes, indicate KBR's competitive advantage and customer satisfaction in critical defense programs.

Aerospace Engineer

KBR's involvement in critical Air Force programs like the F-16, A-10 and T-38 highlights its strategic importance in maintaining and enhancing key military assets. The company's role in digital transformation initiatives, such as digital material management, positions it at the forefront of modernizing defense systems. Particularly noteworthy is KBR's work on advanced safety systems like the A-10 Ground Collision Avoidance System (GCAS) and the F-16's Secure Mission Data System (SMDS).

The development of prototypes for critical safety hardware, such as the T-38 Canopy Transparency, showcases KBR's capabilities in rapid prototyping and innovation. This expertise in sustainment engineering and system integration is important for extending the operational life and effectiveness of these long-serving aircraft platforms.

HOUSTON, Sept. 16, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced it was awarded a 60-month cost-plus-fixed-fee recompete Information Analysis Center Multiple Award Contract (IAC MAC) task order with an estimated value of $140 million to provide operational safety, suitability, and effectiveness engineering tasks supporting the Air Force Life Cycle Management Center (AFLCMC).

As the U.S. Air Force's trusted partner, KBR will continue to perform research and analyses developing recommendations related to reliability, maintainability, quality, supportability, and interoperability, airworthiness, life cycle management, failure testing, and diminishing manufacturing sources and material shortages issues at Hill Air Force Base in Clearfield, Utah, and other U.S. Air Force locations.

Under the terms of the contract, KBR will continue to actively assist the F-16, A-10 and T-38 System Program Offices on their digital transformation journeys under digital material management initiatives. The team will also continue providing system engineering and integration support for systems such as the A-10 Ground Collision Avoidance System (GCAS) and the F-16's Secure Mission Data System (SMDS) and JARVIS programs. KBR will develop prototypes for critical safety hardware, such as the T-38 Canopy Transparency, utilizing state-of-the-art rapid prototyping capabilities.

"We have provided sustainment engineering to key Air Force programs for over two decades," said Byron Bright, President, Government Solutions U.S. "The F-16, A-10 and T-38 program offices at Hill AFB are integral to U.S. national security, and KBR is proud to be The Team Behind the Mission^®, providing critical research and development to keep these programs safe and mission-ready."

KBR is a trusted partner to the U.S. Air Force, enhancing weapon system capabilities, providing superior sustainment engineering solutions, and improving mission readiness for the military.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 36,000 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 performance periods, contract values and outcomes, 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 and duration of KBR's new contract with the Air Force Life Cycle Management Center?

KBR (NYSE: KBR) has been awarded a 60-month contract with an estimated value of $140 million to support the Air Force Life Cycle Management Center (AFLCMC).

Which aircraft programs will KBR be supporting under this new contract?

KBR will be supporting the F-16, A-10, and T-38 aircraft programs under this contract with the U.S. Air Force.

What specific services will KBR provide to the Air Force Life Cycle Management Center?

KBR will provide operational safety, suitability, and effectiveness engineering tasks, as well as research and analyses related to reliability, maintainability, quality, supportability, and interoperability for various Air Force systems.

Where will KBR primarily perform the work for this Air Force contract?

The primary location for KBR's work under this contract will be Hill Air Force Base in Clearfield, Utah, along with other U.S. Air Force locations.