KBR Awarded $60.7M Task Order to Provide Cybersecurity Services to the NIWC Atlantic in Support of the Defense Health Agency

Rhea-AI Summary

KBR (NYSE:KBR) secures a new $60.7 million task order with potential value of $245.6 million to provide cybersecurity services for the Defense Health Agency's initiatives. The contract focuses on cybersecurity and information assurance services for the Military Health System, including assessment, authorization execution, cyber tools development, security control assessments, and cybersecurity sustainment support.

Insights

Cybersecurity Analyst

The task order awarded to KBR to support the Defense Health Agency's cybersecurity initiatives represents a significant commitment to national security, especially in the context of protecting health-related defense infrastructure. From a cybersecurity perspective, the focus on risk management frameworks and compliance testing with National Institute of Standards and Technology guidelines is a proactive step towards fortifying the Military Health System's defenses against cyber threats.

The capability to develop cyber tools and conduct security control assessments is increasingly vital as cyberattacks become more sophisticated. For stakeholders, this contract not only boosts confidence in KBR's expertise in cybersecurity but also indicates potential growth in the company's government solutions sector. The long-term nature of the contract, with options extending up to four years, provides a stable revenue stream and suggests a deepening relationship with the government, which could lead to further contracts in the future.

Financial Analyst

With an estimated value of $245.6 million over four years, this contract is a substantial addition to KBR's portfolio, likely to have a positive impact on the company's financial health. Investors should note the potential for stable, long-term revenue that could contribute to KBR's earnings throughout the duration of the contract. Additionally, the contract could enhance KBR's competitive positioning in the market for government contracts, particularly in the cybersecurity domain.

It's also important to consider the broader implications for the defense sector, as contracts like these may signal increased federal spending on cybersecurity. This could indicate a favorable environment for companies operating in the defense and technology services industry, potentially leading to an uptick in sector-specific investment opportunities.

Defense Industry Analyst

The contract between KBR and NIWC Atlantic underscores the U.S. government's prioritization of cybersecurity within the Military Health System. The emphasis on information assurance services and the development of cyber tools reflects the strategic importance of cybersecurity in the defense industry.

For the defense sector, this contract could serve as a bellwether for future trends, where cybersecurity and information assurance become increasingly integrated into defense contracts. As defense agencies continue to modernize their infrastructure, companies that can offer sophisticated cybersecurity services are likely to benefit. This may lead to a reshuffling of key players in the defense contracting space, with those proficient in cybersecurity gaining an edge.

HOUSTON, March 26, 2024 /PRNewswire/ -- KBR (NYSE:KBR) was awarded a new one-year $60.7 million task order with three one-year options on its Seaport NxG IDIQ contract to assist with project execution for the Naval Information Warfare Center (NIWC) Atlantic. The contract supports the Defense Health Agency's (DHA) cybersecurity services and risk management framework (RMF) initiatives. If all options are exercised, the estimated value of the four-year task order is $245.6 million.

DHA oversees integrating clinical and business operations across the Military Health System (MHS). The primary focus of the contract is to provide cybersecurity and information assurance services at locations in and outside the Continental U.S. KBR's role with NIWC Atlantic includes assessment and authorization execution, cyber tools development, security control assessments, and cybersecurity sustainment support.

"This work is critical to the protection and security of the Defense Health Agency's infrastructure, which impacts the Military Health System as a whole," said Byron Bright, President of KBR Government Solutions, U.S. "This is a new contract for KBR and we're excited to demonstrate our high-end services and sophisticated cyber expertise in support of NIWC Atlantic's continuous drive for innovative cybersecurity technologies and solutions."

KBR's cyber tools facilitate compliance testing with the National Institute of Standards and Technology's RMF. This capability allows for thorough testing and validation of cybersecurity measures against established government standards ensuring that our customers' systems remain robust, secure, and compliant with federal guidelines.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 34,000 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 of the Seaport NxG IDIQ contract and the value of potential contract extensions, 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 new task order awarded to KBR?

The new task order awarded to KBR is $60.7 million with a potential value of $245.6 million if all options are exercised.

What is the primary focus of the contract between KBR and NIWC Atlantic?

The primary focus of the contract is to provide cybersecurity and information assurance services for the Military Health System.

Who is the President of KBR Government Solutions, U.S.?

Byron Bright is the President of KBR Government Solutions, U.S.

What role does KBR play in the contract with NIWC Atlantic?

KBR's role includes assessment and authorization execution, cyber tools development, security control assessments, and cybersecurity sustainment support.

What does KBR's cyber tools facilitate in terms of compliance testing?

KBR's cyber tools facilitate compliance testing with the National Institute of Standards and Technology's RMF.