KBR Awarded Follow-On Task Order Supporting B-52 System Program Office
KBR has secured an $82 million cost-plus-fixed-fee task order from the United States Air Force for the Air Force Life Cycle Management Center to support the B-52 System Program Office at Tinker AFB, Oklahoma. This contract, under the IAC MAC, spans five years and covers areas such as reliability, maintainability, quality, supportability, and interoperability (RMQSI) issues. KBR will focus on system and structural sustainability, component testing, cybersecurity, and obsolescence. Tasks also include reliability analysis, development of non-destructive inspection techniques, and maintenance procedures. KBR highlights its ongoing 8-year involvement with the B-52 program and reinforces its strategic partnership with the Department of Defense.
- KBR secured an $82 million task order, indicating strong revenue generation.
- The contract reinforces KBR's 8-year presence in the B-52 program, showcasing stability.
- Inclusion of cybersecurity support emphasizes growth in service offerings.
- The 5-year contract provides long-term financial and operational stability.
- Cost-plus-fixed-fee contracts can limit profit margins due to fixed fees.
- Potential delays or issues in delivering complex tasks could impact project timelines.
- Dependence on a single government contract may pose risks if future awards are not secured.
Insights
KBR's new $82 million task order from the U.S. Air Force to support the B-52 System Program Office represents a solid revenue stream addition to their portfolio. This cost-plus-fixed-fee contract implies KBR will be reimbursed for all allowable costs plus a fixed fee, reducing financial risk and providing predictable earnings. Over a five-year period, this order translates to an average of
The B-52 program's longevity ensures consistent work, aligning well with KBR's strategy of long-term engagements with government clients. The addition of cybersecurity tasks highlights KBR's adaptability to meet evolving defense requirements. This could lead to further opportunities within cybersecurity, a growing sector in defense spending.
For investors, this news underscores KBR's stable income from government contracts, strengthening their position amidst potential market volatility. The sustained relationship with USAF signifies client trust and performance reliability.
The task order's focus areas, including reliability, quality and cybersecurity, are critical for modernizing the B-52 fleet. The inclusion of cybersecurity is particularly noteworthy, reflecting increasing emphasis on protecting legacy systems against cyber threats, which are a significant concern in contemporary defense strategies.
KBR's ability to secure this follow-on contract further positions them as a key player in the defense sector. Their expertise in RMQSI (Reliability, Maintainability, Quality, Supportability, Interoperability) ensures the B-52's continued effectiveness and readiness. This contract also indicates KBR's capability to address obsolescence and sustainability challenges, vital for extending the service life of the B-52.
This contract's strategic importance lies in its alignment with the Department of Defense's goals, ensuring the longevity of critical defense infrastructure.
Under the terms of the contract, KBR will continue to address areas such as reliability, maintainability, quality, supportability and interoperability (RMQSI) issues and impact, system sustainability, structural sustainability, component and subsystem testing, obsolescence and diminishing sources, and cybersecurity. Tasks include reliability analysis, development of non-destructive inspection (NDI) and test techniques, and development of maintenance procedures and techniques, and analysis tools for reliability data. KBR will address Department of Defense critical technologies areas. This work will be performed over a period of five years.
"KBR is proud to support the USAF to extend the life of the B-52 and similar legacy defense systems," said Byron Bright, President of Government Solutions
KBR maintains its solid eight-year presence in the B-52 program office with the win of this recompete. This task order epitomizes KBR's ability to grow with current customers, not only with significantly increased value, but also with the addition of cybersecurity support to the scope.
About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 35,000 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.
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Forward Looking Statements
The statements in this press release that are not historical statements, including statements regarding future contractual performance and growth, 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
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SOURCE KBR, Inc.
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