KBR Expanding Capabilities for DoD Joint Mission Environment Test Capability Program with $445M Contract Win

Rhea-AI Summary

KBR has secured a $445 million cost-plus-fixed-fee contract for the Joint Mission Environment Test Capability (JMETC) program under the Department of Defense Information Analysis Center. This five-year recompete contract supports the Office of the Secretary of Defense's Test Resource Management Center (TRMC).

The company will enhance JMETC's capabilities by researching, assessing, and addressing test and experimentation requirements across multiple DoD locations. The JMETC environment provides infrastructure for joint distributed test events by integrating live, virtual, and constructive test resources.

Building on 24 years of support, KBR has expanded its expertise in critical technology areas including AI/ML, hypersonics, big data, cybersecurity, and event support for large force exercises.

Positive

• Secured significant $445 million contract win
• Five-year contract duration providing stable revenue stream
• Recompete win demonstrates strong customer relationship and performance
• Expansion of capabilities in high-growth technology areas (AI/ML, hypersonics, cybersecurity)

Negative

• Cost-plus-fixed-fee structure may limit profit margin potential

Insights

Financial Analyst

The $445 million DoD contract win represents a significant revenue boost for KBR's government solutions segment. This recompete success demonstrates KBR's strong competitive position and ability to retain strategic contracts. The cost-plus-fixed-fee structure provides stable margins while minimizing execution risk. With a 5-year duration, this contract provides valuable revenue visibility and strengthens KBR's already robust $19.7B backlog. The expanded scope into critical areas like AI/ML, hypersonics and cybersecurity positions KBR well for future contract opportunities in high-growth defense technology domains. This win reinforces KBR's evolution from a traditional engineering company to a technology-focused government contractor with higher-margin potential.

Tech Expert

The JMETC program's integration of live, virtual and constructive test resources represents cutting-edge military simulation technology. KBR's expanded role in AI/ML, hypersonics and multi-domain operations positions them at the forefront of next-generation defense capabilities. The contract's focus on RDT&E networking and cybersecurity is particularly significant as the DoD moves toward more interconnected and sophisticated testing environments. KBR's 24-year expertise in these systems provides a strong foundation for developing enhanced test and experimentation capabilities that will be important for evaluating emerging military technologies.

HOUSTON, Dec. 16, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced it has been awarded an estimated $445 million cost-plus-fixed-fee 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. This recompete for the Joint Mission Environment Test Capability (JMETC) program supports the Office of the Secretary of Defense's Test Resource Management Center (TRMC). The work will be performed over a period of five years across multiple DoD locations.

The JMETC environment provides a test infrastructure consisting of the components necessary to conduct joint distributed test events by cost-effectively integrating live, virtual, and constructive test resources that are configured to support the users' needs. Under the terms of the contract, KBR will research, assess and address unique test and experimentation requirements to enhance JMETC's capabilities and integrate work into additional locations. KBR will support the TRMC in expanding test and experimentation connectivity and develop enhanced capabilities for test and experimentation environments through research, data analysis, system development, evaluations, strategic planning, and assessments.

"Building upon more than 24 years of support to this customer, KBR continues to leverage enhanced capabilities for critical technology areas for the Department of Defense," said Stuart Bradie, KBR President and CEO. "This contract highlights KBR's commitment and support to the United States military through innovation and technological developments."

For the past five years, KBR has leaned forward expanding our support across many DoD critical technology areas including artificial intelligence (AI/ML), hypersonics, big data, RDT&E networking gear, multi-domain operations, cybersecurity, and event support for essential large force exercises and experimentation events. KBR serves as subject matter experts in T&E Science and Technology (S&T) for these DoD test and evaluation infrastructure capabilities.

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 37,000 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 capabilities, 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 DoD JMETC contract?

KBR was awarded a $445 million contract for the JMETC program, which will be performed over a five-year period across multiple DoD locations.

What services will KBR provide under the new JMETC contract?

KBR will research, assess and address test and experimentation requirements, enhance JMETC's capabilities, support infrastructure integration, and develop enhanced capabilities through research, data analysis, system development, and strategic planning.

What technology areas does KBR support for the Department of Defense?

KBR supports critical technology areas including artificial intelligence (AI/ML), hypersonics, big data, RDT&E networking gear, multi-domain operations, cybersecurity, and event support for large force exercises.

How long has KBR been supporting this DoD customer?

KBR has been supporting this customer for more than 24 years, as stated in the press release.