KBR Wins over $100 million in Contracts to Perform Critical Base Operations for U.S. Military Installations in the Middle East

Rhea-AI Summary

KBR has secured two contracts exceeding $100 million to provide essential base operations services at U.S. military installations in the Middle East. The contracts include a $67.4 million agreement with Naval Facilities Engineering Systems Command for services at four Navy facilities in the United Arab Emirates and a $35 million task order from the U.S. Air Force for power production at Prince Sultan Air Base in Saudi Arabia. KBR aims to enhance operations using advanced technology and analytics while continuing to support military readiness.

Positive

• Secured contracts worth over $100 million, boosting revenue potential.
• Integration of digital solutions and analytics to enhance operational efficiency.
• Long-term contracts with base and option years promote stability.

Negative

• None.

HOUSTON, March 18, 2021 /PRNewswire/ -- KBR (NYSE: KBR) won two contracts worth more than $100 million to provide sustaining base operations services at U.S. military installations throughout the Middle East. KBR's critical logistics and operations support is a part of a strategic, ongoing effort for the U.S. Navy and Air Force in this region.

KBR received a $67.4 million contract from Naval Facilities Engineering Systems Command Atlantic to provide key services to four Navy facilities in the United Arab Emirates. The contract has one base year and seven option years. 

As part of this new work, KBR will integrate digital solutions into its operations by utilizing market-leading asset management software and data analytics. KBR's responsibilities will include management and administration; logistics; equipment maintenance; force protection; facility support and transportation.  

KBR also won a task order with an estimated value of $35 million from the U.S. Air Force Civil Engineer Center to perform power production services at Prince Sultan Air Base in Saudi Arabia. Under the cost-plus-fixed-fee task order, KBR will provide resources necessary for power generation for the 378th Air Expeditionary Wing and partner forces.

The Air Force awarded this two-year task order through the Air Force Contract Augmentation Program V.

KBR provides critical, sustaining base operations services to the U.S. armed forces throughout the Middle East. Guided by its "Zero Harm" program, KBR promotes a culture of safety and sustainability on all of its projects to protect people and the planet.

"These wins are indicative of KBR's commitment to deliver readiness and sustainment solutions to the defense and intelligence communities," said Byron Bright, KBR's Government Solutions President. "We are excited to continue to grow our presence in the Middle East as we harness the power of technology to meet the unique requirements of military operations."

For decades, KBR has helped keep bases and other facilities operating efficiently so deployed troops and government personnel can execute their missions without distraction. KBR provides a full spectrum of engineering, operations, maintenance and logistics services to defense and civil agency customers around the world.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 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 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 significant adverse impacts on economic and market conditions of the COVID-19 pandemic; the company's ability to respond to the challenges and business disruption presented by the COVID-19 pandemic; the recent dislocation of the global energy market; the company's ability to realize cost savings and efficiencies relating to the streamlining of its Energy Solutions business; the company's ability to manage its liquidity; the company's ability to continue to generate anticipated levels of revenue, profits and cash flow from operations during the COVID-19 pandemic and any resulting economic downturn; 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, including as a result of the COVID-19 pandemic; 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 contracts did KBR win recently?

KBR won two contracts totaling over $100 million for base operations services at U.S. military installations in the Middle East.

What is the value of KBR's contract with the U.S. Navy?

KBR's contract with the U.S. Navy is worth $67.4 million for services in the United Arab Emirates.

What tasks will KBR perform for the U.S. Air Force?

KBR will perform power production services at Prince Sultan Air Base in Saudi Arabia under a $35 million task order.

How will KBR enhance its operations in military services?

KBR plans to integrate digital solutions and data analytics into its operations to improve efficiency.

What is the expected duration of KBR's Navy contract?

The Navy contract includes one base year and seven option years.