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KBR Awarded Estimated $230M Contract Supporting Information Systems Modernization for NAVAIR

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KBR has been awarded an estimated $230 million cost-plus-fixed-fee recompete contract by the U.S. Air Force's 774th Enterprise Sourcing Squadron. The contract, under the Department of Defense Information Analysis Center's multiple-award contract vehicle, is for information systems modernization supporting Naval Air Systems Command (NAVAIR), Program Executive Office for Manpower, Logistics and Business Solutions (PEO MLB), and Commander, Fleet Readiness Centers (COMFRC).

The work will primarily be performed at Naval Air Station Patuxent River, Maryland, and Huntsville, Alabama, over a five-year period. KBR will provide optimized IT solutions across the NAVAIR enterprise, including research and development for real-time flight and maintenance information, deployable hosting solutions, and end-to-end testing of software releases and cybersecurity updates.

KBR ha ricevuto un contratto stimato di $230 milioni a costo plus fisso dai U.S. Air Force's 774th Enterprise Sourcing Squadron. Il contratto, tramite il veicolo di contratto multiplo del Department of Defense Information Analysis Center, è per la modernizzazione dei sistemi informatici a supporto del Naval Air Systems Command (NAVAIR), del Program Executive Office for Manpower, Logistics and Business Solutions (PEO MLB) e del Commander, Fleet Readiness Centers (COMFRC).

Il lavoro sarà principalmente svolto presso la Naval Air Station Patuxent River, nel Maryland, e a Huntsville, in Alabama, per un periodo di cinque anni. KBR fornirà soluzioni IT ottimizzate per l'intero ente NAVAIR, comprese la ricerca e lo sviluppo per informazioni di volo e manutenzione in tempo reale, soluzioni di hosting deployable e test end-to-end di rilascio software e aggiornamenti di cybersicurezza.

KBR ha sido adjudicada un contrato recompuesto estimado en $230 millones con tarifa fija más costos por el 774.º Escuadrón de Sourcing Empresarial de la Fuerza Aérea de EE. UU. El contrato, bajo el vehículo de contrato de múltiples adjudicaciones del Centro de Análisis de Información del Departamento de Defensa, es para la modernización de sistemas de información que apoyan al Comando de Sistemas Aéreos Navales (NAVAIR), a la Oficina Ejecutiva de Programa para Recursos Humanos, Logística y Soluciones Empresariales (PEO MLB) y al Comandante, Centros de Preparación de Flota (COMFRC).

El trabajo se llevará a cabo principalmente en la Estación Aérea Naval Patuxent River, Maryland, y Huntsville, Alabama, durante un período de cinco años. KBR proporcionará soluciones de TI optimizadas en todo el ente NAVAIR, incluidos la investigación y desarrollo para información de vuelo y mantenimiento en tiempo real, soluciones de alojamiento desplegables y pruebas de extremo a extremo de lanzamientos de software y actualizaciones de ciberseguridad.

KBR는 미국 공군 774번째 기업 조달 대대에서 약 $230 백만의 고정 수수료 계약을 체결했습니다. 이 계약은 국방부 정보 분석 센터의 여러 계약 수단 아래에서 체결되었으며, 해군 항공 시스템 사령부(NAVAIR), 인력 로그 및 비즈니스 솔루션 프로그램 집행 사무소(PEO MLB), 함대 준비 센터(COMFRC)를 지원하는 정보 시스템 현대화를 위한 것입니다.

작업은 주로 메릴랜드주 파턱센트 리버 해군 항공 기지 및 앨라배마주 헌츠빌에서 5년 기간 동안 수행됩니다. KBR은 NAVAIR 전역에서 최적화된 IT 솔루션을 제공하며, 실시간 비행 및 유지보수 정보에 대한 연구개발, 배포 가능한 호스팅 솔루션 및 소프트웨어 릴리스를 포함한 종합 테스트 및 사이버 보안 업데이트를 지원합니다.

KBR a remporté un contrat de recompte estimé à 230 millions de dollars avec frais fixes attribué par le 774e Escadron d'Approvisionnement des Entreprises de l'Armée de l'Air des États-Unis. Le contrat, sous le véhicule de contrat à multiples attributions du Centre d'Analyse des Informations du Département de la Défense, concerne la modernisation des systèmes d'information au soutien de la Commande des Systèmes Aériens Navals (NAVAIR), du Bureau Exécutif du Programme pour les Ressources Humaines, la Logistique et les Solutions Commerciales (PEO MLB) et du Commandant des Centres de Préparation de Flotte (COMFRC).

Le travail sera principalement effectué à la Naval Air Station Patuxent River, au Maryland, et à Huntsville, en Alabama, sur une période de cinq ans. KBR fournira des solutions informatiques optimisées pour l'ensemble de l'entreprise NAVAIR, y compris la recherche et le développement pour des informations de vol et de maintenance en temps réel, des solutions d'hébergement déployables et des tests de bout en bout des versions logicielles et des mises à jour de cybersécurité.

KBR hat einen geschätzten $230 Millionen Kosten-plus-Fixpreis-Vertrag vom 774. Enterprise Sourcing Squadron der U.S. Air Force erhalten. Der Vertrag, der über das Mehrfachvergabeverfahren des Department of Defense Information Analysis Center läuft, dient der Modernisierung von Informationssystemen zur Unterstützung des Naval Air Systems Command (NAVAIR), des Program Executive Office für Personal, Logistik und Geschäftslösungen (PEO MLB) und des Kommandanten der Fleet Readiness Centers (COMFRC).

Die Arbeiten werden hauptsächlich an der Naval Air Station Patuxent River in Maryland und in Huntsville, Alabama, über einen Fünfjahreszeitraum durchgeführt. KBR wird optimierte IT-Lösungen für das gesamte NAVAIR-Unternehmen bereitstellen, einschließlich Forschung und Entwicklung für Echtzeit-Flug- und Wartungsinformationen, bereitstellbare Hostinglösungen sowie End-to-End-Tests von Software-Releases und Cybersicherheitsupdates.

Positive
  • Awarded a $230 million contract for information systems modernization
  • Five-year contract duration provides stable revenue stream
  • Expands KBR's presence in the naval aviation sector
  • Demonstrates continued trust from the U.S. government as a long-term partner
  • Reinforces KBR's expertise in complex distributed systems and IT solutions
Negative
  • None.

Insights

This $230 million contract for KBR is a significant win, demonstrating the company's strong position in the defense sector. The cost-plus-fixed-fee structure provides stability and potentially higher margins compared to fixed-price contracts. The 5-year duration offers revenue visibility and strengthens KBR's long-term relationship with NAVAIR.

The contract's focus on information systems modernization aligns with the growing demand for advanced IT solutions in defense. This positions KBR well in a high-growth area, potentially leading to future opportunities. The company's 21-year history with similar projects showcases its expertise and increases the likelihood of successful execution.

Investors should note the contract's potential for expansion and follow-on work, given the critical nature of the systems being developed and maintained. However, cost-plus contracts can face scrutiny, so efficient project management will be important for maintaining profitability and stakeholder satisfaction.

KBR's contract to modernize NAVAIR's Logistics Information Technology programs is strategically important. The focus on real-time flight and maintenance information, deployable hosting solutions and cybersecurity updates addresses critical needs in modern defense operations. These capabilities enhance military readiness and operational efficiency.

The inclusion of a fleet representative environment for end-to-end testing is particularly valuable, allowing for robust validation of software releases in a simulated operational setting. This approach can significantly reduce deployment risks and improve system reliability.

KBR's role in supporting 83,000 users across multiple military branches underscores the contract's broad impact and the company's deep integration into defense IT infrastructure. This extensive user base provides opportunities for KBR to gather insights and potentially develop additional value-added services or products for the defense sector.

HOUSTON, Sept. 18, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today it has been awarded an estimated $230 million cost-plus-fixed-fee recompete contract under the Department of Defense Information Analysis Center's (DoD IAC) multiple-award contract (MAC) vehicle. These DoD IAC MAC task orders are awarded by the U.S. Air Force's 774th Enterprise Sourcing Squadron to develop and create new knowledge for the enhancement of the DTIC repository and the R&D and S&T community. KBR will perform information systems modernization for Logistics Information Technology (LOG IT) programs supporting Naval Air Systems Command (NAVAIR), Program Executive Office for Manpower, Logistics and Business Solutions (PEO MLB) and Commander, Fleet Readiness Centers (COMFRC). The work will be primarily performed at Naval Air Station Patuxent River, Maryland and Huntsville, Alabama over a period of five years.  

Under the terms of the contract, KBR will provide optimized IT solutions across the NAVAIR enterprise. KBR's LOG IT team will perform research and development for data movement of real-time flight and maintenance information and publications, deployable hosting solutions for applications and a fleet representative environment in which to perform end-to-end testing of software releases, cybersecurity updates and refinement of business solutions for the maintenance and logistics environment. These essential in-service systems engineering, modernization, testing and sustainment capabilities will be delivered through the Joint Technical Data Integration (JTDI), the Joint Delivery Management Service (JDMS) and the Naval Air Systems Command Fleet System Array (NFSA) programs, which are the bedrock of current and future LOG IT operations.

"For the past 21 years, KBR has supported these and similar essential requirements as a trusted partner to the U.S. government," said Stuart Bradie, KBR President and CEO.  "We are proud to be selected again by NAVAIR to further demonstrate our ability to deliver high-end, technical capabilities while implementing and enabling large complex enterprise systems."

KBR deploys technical support and data transportation to over 83,000 users across U.S. Navy, Army, and Marine Corps units deployed ashore, afloat, and expeditionary environments. This award spotlights success with large, complex distributed systems, which enable mission accomplishment while maintaining a cost-conscious mindset. 

ABOUT THE DOD IAC PROGRAM

"The DoD IAC, sponsored by the Defense Technical Information Center, provides technical data management and research support for DoD and federal government users. Established in 1946, the IAC program serves the DoD science & technology (S&T) and acquisition communities to drive innovation and technological developments by enhancing collaboration through integrated scientific and technical information development and dissemination for the DoD and broader S&T community".

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 future operations, 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 KBR (NYSE: KBR) was awarded for NAVAIR information systems modernization?

KBR was awarded an estimated $230 million cost-plus-fixed-fee recompete contract for information systems modernization supporting NAVAIR.

How long is the duration of KBR's (NYSE: KBR) contract for NAVAIR information systems modernization?

The contract awarded to KBR for NAVAIR information systems modernization has a duration of five years.

Where will KBR (NYSE: KBR) primarily perform the work for the NAVAIR contract?

KBR will primarily perform the work at Naval Air Station Patuxent River, Maryland, and Huntsville, Alabama.

What specific programs will KBR (NYSE: KBR) support under the NAVAIR contract?

KBR will support the Joint Technical Data Integration (JTDI), Joint Delivery Management Service (JDMS), and Naval Air Systems Command Fleet System Array (NFSA) programs.

KBR, Inc.

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