KBR Fortifies Army's Battlespace Advantage with $165M Missile Systems Task Order

Rhea-AI Summary

KBR has secured a $165 million task order to provide engineering services for the U.S. Army's Tactical Aviation and Ground Munitions (TAGM) Project Office. This award, part of a cost-plus, fixed fee contract, continues KBR's 22-year partnership with the Army. The company will enhance missile systems, addressing production issues and integrating these systems across various platforms over the next five years at Redstone Arsenal, Alabama. This initiative aims to improve military capabilities and efficiency in deploying advanced weapon systems.

Positive

• Award of a $165 million task order enhances KBR's revenue.
• Continues 22-year relationship with the Army, indicating trust and reliability.
• Focus on advanced missile system development showcases KBR's engineering capabilities.

Negative

• None.

HOUSTON, Aug. 4, 2020 /PRNewswire/ -- KBR (NYSE: KBR) announced today it has been awarded a $165 million task order to perform key engineering services on tactical missiles for the Tactical Aviation and Ground Munitions (TAGM) Project Office within the U.S. Army Program Executive Office Missiles and Space.

KBR was awarded the cost-plus, fixed fee task order under the Department of Defense Information Analysis Center's (DoD IAC) multiple-award contract. KBR has served the Army project office for the last 22 years.

This task order will build upon the engineering efforts KBR provided via a predecessor contract and will address new and expanding needs for performance, programmatic support and logistics analysis. KBR will research, develop, test, evaluate, integrate, and engineer cutting-edge tactical rocket and missile systems as well as ancillary launchers and test sets.

KBR will support the TAGM Project Office portfolio of weapon systems, including the HELLFIRE missile – the primary air-to-ground precision weapon for rotary wing and unmanned aerial systems for all U.S. services and 18 other nations – and its successor and next generation of aviation-launched, air-to-ground, dual-mode guided missiles, the Joint Air-to-Ground Missile System.

This work will enhance the government's ability to produce more rocket and missile systems; identify and mitigate production issues; efficiently integrate weapons systems onto air, ground, and sea platforms; overcome obsolescence issues; and develop new capabilities. KBR will perform these efforts over the next five years at Redstone Arsenal in Alabama.

"KBR will continue to partner with the Army to develop, field and sustain versatile weapon systems that provide a decisive advantage for the U.S. military and its allies," said Byron Bright, President, KBR Government Solutions U.S. "We are proud to serve the warfighter through this task order."

For more than 35 years, KBR has supported U.S. Army air and missile defense systems. The company drives innovation by combining engineering, technical and scientific expertise with its full life cycle capabilities, mission knowledge and future-focused technologies. Known for excelling in complex and extreme environments, KBR is trusted to overcome the nation's most pressing challenges.

About the DoD IAC program 

The DoD IAC program operates as a part of Defense Technical Information Center and provides technical data management and research support for DoD and federal government users. Established in the 1940s, 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, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Energy sectors. KBR employs approximately 37,000 people worldwide (including our joint ventures), with customers in more than 80 countries and operations in 40 countries, across three synergistic global businesses:

• Government Solutions, serving government customers globally, including capabilities that cover the full life cycle of defense, space, aviation, and other government programs and missions from research and development, through systems engineering, test and evaluation, and program management, to operations, maintenance, and field logistics
• Technology Solutions, featuring proprietary technology, equipment, catalysts, digital solutions and related technical services focused on providing sustainable and value-add solutions for a broad base of industrial, ammonia, and specialty chemicals and inorganics customers
• Energy Solutions, providing services across the asset life cycle to customers globally, including energy transition and efficiency, onshore and offshore oil and gas, LNG/GTL, refining, petrochemicals, chemicals, and fertilizers

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 Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, 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 and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR'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 discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR 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 KBR's recent contract with the U.S. Army for?

KBR recently secured a $165 million contract to provide engineering services for missile systems under the Tactical Aviation and Ground Munitions project.

How long is KBR's latest contract with the Army?

The task order is set to be performed over the next five years.

What are the expected outcomes of KBR's engineering services for the Army?

KBR's services will enhance missile systems, address production issues, and improve integration across various platforms.

How does this contract impact KBR's business?

This contract significantly boosts KBR’s revenue and demonstrates its ongoing partnership and trust with the U.S. Army.

What is the significance of the TAGM Project Office for KBR?

The TAGM Project Office is crucial for KBR as it underpins its long-term collaboration with the Army, enhancing its portfolio in defense services.