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

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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.

KBR ha ricevuto un ordine di lavoro successivo di $140 milioni per supportare il Centro di Gestione del Ciclo di Vita dell'Aviazione (AFLCMC). Il contratto recompete a costo più fisso di 60 mesi prevede l'esecuzione di compiti di ingegneria riguardanti la sicurezza operativa, la idoneità e l'efficacia. KBR proseguirà il suo lavoro sui programmi aerei F-16, A-10 e T-38 presso la Base Aerea di Hill e in altre località dell'Air Force statunitense.

L'azienda assisterà nelle iniziative di trasformazione digitale, ingegneria dei sistemi e supporto all'integrazione per diversi sistemi. KBR svilupperà anche prototipi per hardware di sicurezza critico utilizzando capacità di prototipazione rapida. Questo contratto rafforza la lunga collaborazione di KBR con l'Air Force statunitense nell'offrire soluzioni di ingegneria per il mantenimento e nel migliorare la prontezza della missione.

KBR ha sido adjudicada una orden de tarea adicional de $140 millones para apoyar al Centro de Gestión del Ciclo de Vida de la Fuerza Aérea (AFLCMC). El contrato recompete a costo más tarifa fija de 60 meses implica la provisión de tareas de ingeniería en materia de seguridad operacional, idoneidad y efectividad. KBR continuará su trabajo en los programas de aeronaves F-16, A-10 y T-38 en la Base de la Fuerza Aérea de Hill y en otras ubicaciones de la Fuerza Aérea de EE. UU.

La empresa asistirá en las iniciativas de transformación digital, ingeniería de sistemas y soporte de integración para varios sistemas. KBR también desarrollará prototipos para hardware crítico de seguridad utilizando capacidades de prototipado rápido. Este contrato refuerza la asociación a largo plazo de KBR con la Fuerza Aérea de EE. UU. en la provisión de soluciones de ingeniería de sostenimiento y en la mejora de la preparación para la misión.

KBR은 공군 생애 주기 관리 센터(AFLCMC)를 지원하기 위해 1억 4천만 달러의 후속 작업 지시를 수주했습니다. 60개월 간의 비용 가산 고정 수수료 계약은 운영 안전성, 적합성 및 효과성 엔지니어링 작업을 제공하는 것과 관련이 있습니다. KBR은 힐 공군 기지와 미국 공군의 다른 장소에서 F-16, A-10 및 T-38 항공기 프로그램에 대한 작업을 계속 진행할 것입니다.

회사는 다양한 시스템에 대한 디지털 전환 이니셔티브, 시스템 엔지니어링 및 통합 지원을 도울 것입니다. KBR은 또한 신속한 프로토타입 기능을 사용하여 중요한 안전 하드웨어의 프로토타입을 개발합니다. 이 계약은 유지 관리 엔지니어링 솔루션을 제공하고 임무 준비 태세를 개선하는 데 있어 KBR과 미국 공군 간의 오랜 파트너십을 강화합니다.

KBR a reçu un contrat d'extension de 140 millions de dollars pour soutenir le Centre de Gestion du Cycle de Vie de l'Air Force (AFLCMC). Le contrat de 60 mois à coût majoré et forfait implique la réalisation de tâches d'ingénierie sur la sécurité opérationnelle, l'adéquation et l'efficacité. KBR poursuivra ses travaux sur les programmes d'avions F-16, A-10 et T-38 à la Base Aérienne de Hill et dans d'autres installations de l'Air Force américaine.

L'entreprise assistera aux initiatives de transformation numérique, à l'ingénierie système et au soutien à l'intégration pour divers systèmes. KBR développera également des prototypes pour du matériel de sécurité critique en utilisant des capacités de prototypage rapide. Ce contrat renforce le partenariat de longue date de KBR avec l'Air Force américaine dans la fourniture de solutions d'ingénierie pour la maintenance et l'amélioration de la préparation opérationnelle.

KBR wurde mit einem Folgeauftrag über 140 Millionen USD beauftragt, um das Luftfahrt-Lebenszyklus-Management-Zentrum (AFLCMC) zu unterstützen. Der 60-monatige Kostenerstattungsvertrag mit festem Honorar umfasst die Bereitstellung von Aufgaben zur operationellen Sicherheit, Eignung und Effektivität im Ingenieurwesen. KBR wird seine Arbeiten an den F-16-, A-10- und T-38-Programmen auf der Hill Air Force Base und an anderen Standorten der US Air Force fortsetzen.

Das Unternehmen wird bei Digitalisierungsinitiativen, Systemengineering und Integrationsunterstützung für verschiedene Systeme helfen. KBR wird auch Prototypen für kritische Sicherheits-Hardware mit schnellen Prototyping-Fähigkeiten entwickeln. Dieser Vertrag verstärkt die langjährige Partnerschaft von KBR mit der US Air Force bei der Bereitstellung von Ingenieurlösungen zur Aufrechterhaltung und der Verbesserung der Einsatzbereitschaft.

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

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.

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.

KBR, Inc.

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