KBR Secures 10-Year Subcontract for U.S. Air Force Human Performance Optimization

Rhea-AI Summary

KBR (NYSE: KBR) secures a new subcontract with BSIT to provide Human Performance Optimization services for the U.S. Air Force, extending over ten years. The contract aims to enhance physical and cognitive performance, reduce injury rates, and ensure combat readiness.

Insights

Defense Contracting Analyst

The announcement by KBR to provide human performance optimization services to the U.S. Air Force Air Combat Command represents a strategic expansion of the company's existing portfolio of government contracts. This move capitalizes on KBR's historical expertise in health and human performance, leveraging more than 50 years of experience in supporting both NASA astronauts and U.S. Special Operations Forces. The multi-award IDIQ (Indefinite Delivery, Indefinite Quantity) contract structure is a common procurement method in government contracting, offering flexibility in both the volume and timing of services provided. This could potentially lead to increased revenue stability for KBR over the ten-year period, as IDIQ contracts often include a base period with multiple option years that the government can exercise.

For investors, the longevity and scale of the contract may signal a long-term revenue stream, contributing positively to KBR's financial stability and growth prospects. However, it's important to monitor how KBR manages the integration of this new contract into its operations, as well as the potential impact on its profit margins, given the specialized nature of the services required. The contract's focus on optimizing physical and cognitive performance could also position KBR at the forefront of a niche market within the defense sector, potentially opening doors to similar opportunities in the future.

Military Readiness Expert

The HPO contract's objective to enhance military readiness through optimizing human performance is reflective of the broader trend within military organizations to prioritize the well-being and effectiveness of personnel. By focusing on decreasing occupational injury rates and accelerating return to duty, KBR is addressing key aspects of force readiness that can have significant operational impacts. Effective human performance optimization can lead to enhanced combat readiness, potentially reducing the long-term costs associated with training and healthcare in military settings.

As military operations increasingly recognize the importance of cognitive and physical capabilities in achieving strategic objectives, contracts like the HPO are likely to become more prevalent. The emphasis on a comprehensive approach to personnel well-being, including both physical and behavioral health, aligns with modern military strategies that view soldier resilience as a critical component of operational success. The collaboration between KBR and BSIT could serve as a model for future public-private partnerships aimed at advancing military human performance initiatives.

HOUSTON, March 18, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today it has won a new subcontract with Bering Straits Information Technologies (BSIT), a subsidiary of Bering Straits Native Corporation (BSNC), in support of the U.S. Air Force Air Combat Command to provide human performance optimization services at various military bases around the world.

The Human Performance Optimization (HPO) contract is a multi-award IDIQ anticipated to be executed over a span of ten years, extending until March 2034, and was assembled as one of the U.S. Air Force's newest programs to enhance human performance. In support of BSIT and the customer, KBR will provide resiliency and well-being services for military personnel throughout the country and abroad. The contract was specifically designed to optimize physical and cognitive performance, decrease occupational injury rates, accelerate return to duty, and ensure combat readiness across aircrew and warfighter communities. 

"KBR has an exceptional team of brilliant physicians, athletic trainers, physical therapists, behavioral health professionals, and other human performance experts. Their expertise shines through, and this win is a testament to their dedication," stated Byron Bright, President of KBR Government Solutions U.S. "We are thrilled to collaborate with Bering Straits Information Technologies and the U.S. Air Force on this crucial mission to elevate military readiness to unprecedented heights, building upon our past successes."

The HPO contract expands upon KBR's more than 50 years of commitment to the wider health and human performance market within NASA and the Department of Defense. This includes its two prime contracts managing the physical and mental readiness of NASA astronauts through the Health and Human Performance contract, as well as supporting the unique resilience and well-being needs of the U.S. Special Operations Forces under its Preservation of Force and Family (POTFF) contract.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 34,000 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 the performance of the HPO contract, 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 contract did KBR win with BSIT for the U.S. Air Force?

KBR won a Human Performance Optimization (HPO) contract with BSIT to provide services for the U.S. Air Force.

How long is the HPO contract expected to be executed?

The HPO contract is anticipated to be executed over a span of ten years, until March 2034.

What services will KBR provide under the HPO contract?

KBR will provide resiliency and well-being services for military personnel, aiming to optimize physical and cognitive performance, reduce injury rates, and ensure combat readiness.

What other contracts has KBR been involved in related to health and human performance?

KBR has been involved in managing the physical and mental readiness of NASA astronauts through the Health and Human Performance contract, as well as supporting the U.S. Special Operations Forces under the Preservation of Force and Family (POTFF) contract.