KBR Health and Human Performance Expertise Recognized with Multiple-Award Contract Worth $43 Billion
KBR has been chosen as one of 11 awardees for a $43 billion multiple-award contract by the Defense Health Agency to provide health and wellness support for military personnel and their families. Under the Medical Q Coded Support and Services Next Generation (MQS2-NG) contract, KBR will bid on task orders to supply dental, physician, and nurse medical services at Department of Defense Military Treatment Facilities (MTFs) across the U.S. and strategic overseas locations. The contract runs from 2024 to 2034, with options, enhancing KBR's long-standing commitment to supporting military and NASA personnel.
- Awarded $43 billion multiple-award contract by the Defense Health Agency.
- Opportunity to bid on task orders to provide health and wellness support.
- Contract duration of 10 years, from 2024 to 2034, ensuring long-term revenue.
- Supports MTFs across continental U.S. and strategic overseas locations.
- Expands KBR's health and human performance services.
- Continues KBR's five decades of support for military and NASA personnel.
- Contract is indefinite-delivery/indefinite-quantity, implying no guaranteed revenue.
- Competition with 10 other awardees for task orders may limit actual earnings.
- Potentially high operational costs managing and staffing MTFs.
- Execution risk over a 10-year contract period.
Insights
KBR's inclusion in the $43 billion MQS2-NG contract signifies a substantial long-term revenue opportunity. This contract is
It's essential to consider that KBR will need to bid on specific task orders; thus, actual revenue might be lower than the ceiling value. Investors should monitor the company’s success rate in winning these task orders. Additionally, the 10-year period offers stability but requires sustained performance and adaptability to new requirements.
In sum: If KBR effectively capitalizes on this contract, it can provide significant financial stability and growth.
This contract extends KBR’s footprint in the defense health services sector, underlining their capability and expertise. The recognition by the Defense Health Agency highlights their reputable standing in the market.
KBR's historical performance with similar contracts, like the NASA and POTFF agreements, suggests they have the background to deliver quality services. This historical context offers confidence that KBR can manage the demands and expectations of the MQS2-NG contract effectively. Additionally, this positions KBR well against competitors, potentially attracting further contracts and partnerships.
For investors: It's a vote of confidence in KBR’s market strategy and execution capabilities, which can foster long-term growth and stability.
The MQS2-NG contract involves managing and staffing Medical Treatment Facilities (MTFs) for the U.S. military, which is a complex task requiring robust operational and healthcare management expertise. KBR's existing contracts, particularly with NASA and the U.S. Special Operations Forces, demonstrate their capability to work in high-stakes environments.
From a healthcare management perspective, KBR's success largely depends on their ability to recruit, train and retain skilled healthcare professionals. The company's experience with similar contracts suggests they have mechanisms in place to handle these challenges effectively.
For stakeholders: If KBR maintains high standards, this can enhance their reputation and open up further opportunities in the healthcare support services sector.
Under the terms of the MQS2-NG, KBR would help provide dental, physician and nurse medical support services for Department of Defense Military Treatment Facilities (MTFs) located throughout the continental
"The MQS2-NG contract expands upon KBR's dedication to supporting military personnel and their loved ones by improving their resilience and well-being," said Byron Bright, Government Solutions
MQS2-NG is a continuation of KBR's five decades of vital health services support to individuals who perform in complex and multifaceted positions, including hundreds of astronauts via NASA's Human Health and Performance Contract (HHPC) and the
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.
Visit www.kbr.com
Forward Looking Statements
The statements in this press release that are not historical statements, including statements regarding future contractual performance and options, 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.
FAQ
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What kind of services will KBR provide under the MQS2-NG contract?
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