KBR Awarded $771M in LOGCAP Contract Options to Provide Logistics and Life Support Services to U.S. Army EUCOM and NORTHCOM

Rhea-AI Summary

KBR has been awarded $771 million in contract options to provide logistics and life support services to the U.S. Army Northern Command and European Command. The contract period is from March 2024 to March 2025. KBR will continue to support approximately 20,000 U.S. government personnel across Europe and North America, offering services like equipment readiness, training, and supply chain solutions. The company also focuses on sustainable energy solutions to reduce carbon emissions and fuel consumption.

Positive

• KBR awarded a $771 million contract to provide logistics and life support services, ensuring steady revenue for the company.

• The contract signifies the company's ability to consistently deliver mission-critical services to the U.S. Army, highlighting their expertise and reliability.

Negative

• The contract's cost-plus-fixed-fee structure may pose financial risks for KBR if expenses exceed the set fee, affecting profitability.

• Dependence on government contracts like LOGCAP exposes KBR to potential fluctuations in funding or changes in government policies, impacting long-term sustainability.

HOUSTON, April 29, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today it has been awarded an estimated $771 million in cost-plus-fixed-fee contract options to continue mission-critical support to the U.S. Army Northern Command (NORTHCOM) and European Command (EUCOM) under the Logistics Civil Augmentation Program (LOGCAP) V contract. LOGCAP is an indefinite delivery indefinite quantity contract with combatant command (COCOM) based task orders. The option period 4 performance is March 2024 to March 2025.

Under the terms of the contract, KBR will continue to provide life support, equipment readiness, training and supply chain solutions to the U.S. Army. Currently, KBR supports approximately 20,000 U.S. government personnel across roughly 50 locations in Europe and North America. KBR provides mission-critical solutions that include contingency operations, humanitarian support, facility management, life-cycle asset management and integrated supply chain solutions. Additionally, KBR is providing sustainable energy solutions that enable the reduction of carbon emissions and fuel consumption at multiple locations throughout the COCOMs. 

"KBR has spent three decades developing and refining a resilient, global supply chain in support of our LOGCAP work," said Byron Bright, KBR Government Solutions U.S. President. "Our agile staffing solutions and deep domain expertise allow us to consistently deliver mission-critical services to the U.S. Army, and our ability to conduct multi-domain operations means we are prepared for any contingency that arises. KBR provides critical services when the mission can't fail."

In addition, KBR provides LOGCAP support to the National Training Center at Fort Irwin, California, and supports military exercises across NORTHCOM and EUCOM. In Europe, KBR currently supports LOGCAP operations in Bulgaria, Germany, Italy, Kosovo, Latvia, Lithuania, Poland, Romania and Turkey.

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, services and opportunities, 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?

KBR was awarded $771 million in contract options to provide logistics and life support services.

What services will KBR offer under the contract?

KBR will provide life support, equipment readiness, training, and supply chain solutions to the U.S. Army.

What is the contract period for KBR's services?

The option period 4 performance is from March 2024 to March 2025.

How many U.S. government personnel will KBR support?

KBR will support approximately 20,000 U.S. government personnel across Europe and North America.

In which regions does KBR currently provide LOGCAP support?

KBR supports LOGCAP operations in Bulgaria, Germany, Italy, Kosovo, Latvia, Lithuania, Poland, Romania, Turkey, and the National Training Center at Fort Irwin, California.