NASA Awards $531M Engineering Services Contract to Aerodyne and KBR Joint Venture

Rhea-AI Summary

NASA has awarded a $531 million contract to a joint venture between Aerodyne and KBR (NYSE: KBR) for the Mechanical Integrated Services and Technology (MIST) II program. This cost-plus-fixed-fee contract will provide engineering services for spaceflight and ground systems over a five-year base period, with a six-month option. Services include design, analysis, and verification for NASA missions, primarily at Goddard Space Flight Center. KBR's extensive experience with NASA is highlighted, alongside a statement emphasizing the importance of collaboration in space exploration.

Positive

• Awarded $531 million contract from NASA for engineering services.
• Five-year contract term with an option for a six-month extension.
• Joint venture with Aerodyne enhances KBR's capabilities in engineering services for NASA.
• Continues KBR's longstanding relationship with NASA and demonstrates its expertise.

Negative

• None.

CAPE CANAVERAL, Fla. and HOUSTON, July 7, 2021 /PRNewswire/ -- NASA awarded the $531 million Mechanical Integrated Services and Technology (MIST) II contract to a joint venture between Aerodyne and KBR (NYSE: KBR). The joint venture will provide engineering services for spaceflight and ground systems, which will include the development and validation of new technologies for future space and science missions.

The cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract has a maximum value of $531 million. The joint venture will primarily perform this work at Goddard Space Flight Center (GSFC) in Greenbelt, Maryland, as well as other NASA centers and locations. The contract has a five-year base period and one option for a six-month extension.

The joint venture will provide a wide range of engineering services that includes design, analysis, and verification services; technical support for development of space flight, airborne and ground-based instruments and equipment; as well as research and technology development support services for new NASA missions. As part of this effort, the joint venture will provide flight operations activities, contamination control and thermal coatings, and optics and optical systems design and analysis.

"I am very excited about this technical partnership with KBR," said Andrew Allen, former Marine aviator, veteran NASA Space Shuttle pilot and mission commander, and Chief Executive Officer (CEO) for Aerodyne, the majority partner in the joint venture. "We have worked extremely hard to assemble top industry talent to support Goddard Space Flight Center. The joint venture combines the resources of two excellent and well-known engineering firms."

With more than 60 years of experience with NASA, KBR performed similar work under the MIST I contract.

"Space travel and scientific discovery take collaboration," said Stuart Bradie, KBR President and CEO. "KBR currently operates at 11 NASA centers and is one of the world's largest human spaceflight support organizations. Together, with Aerodyne, we bring a compelling and comprehensive portfolio of expertise to propel NASA to study and explore the universe."

About Aerodyne

Aerodyne Industries LLC is a Service-Disabled Veteran-Owned Small Business (SDVOSB) headquartered in Cape Canaveral, FL with a primary focus on serving our NASA, DoD, and federal customer programs and resolving their most challenging technical issues.  Visit www.aerodyneindustries.com.

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 is the value of the contract awarded to KBR by NASA?

The contract awarded to KBR by NASA is valued at $531 million.

What services will KBR provide under the NASA contract?

KBR will provide engineering services for spaceflight and ground systems, including design, analysis, and verification services.

How long is the duration of the NASA contract awarded to KBR?

The contract has a five-year base period with an option for a six-month extension.

Where will KBR primarily perform the contract work for NASA?

KBR will primarily perform the work at Goddard Space Flight Center in Greenbelt, Maryland.

Who are KBR's partners in the NASA contract?

KBR's partner in the NASA contract is Aerodyne, forming a joint venture for this project.