HOUSTON , June 5, 2019 /PRNewswire/ -- KBR (NYSE: KBR) announced today it has been awarded a $530 million contract by the U.S. Marine Corps (USMC) to provide worldwide maintenance and supply chain services for the USMC Blount Island Command. The maximum value of this potential eight-year contract is $950 million.
Under this indefinite delivery/indefinite quantity contract, KBR will provide a full range of logistics services to support three Marine Corps Prepositioning Programs: the Maritime Prepositioning Ships (MPS) Program, Marine Corps Prepositioning Program - Norway (MCPP-N) and the Marine Expeditionary Unit Augmentation Program Kuwait (MAP-K).
These services will include corrective and preventive maintenance, modifications, and Care of Supplies in Storage (COSIS) for equipment at locations around the world. KBR will primarily perform this work at Marine Corps Support Facility Blount Island in Jacksonville, Florida, as well as in Kuwait, Norway, and on 12 prepositioned ships in the Asia-Pacific and Diego Garcia regions.
This cost-reimbursable contract has a base period of five years with one optional ordering period of three years and a six month option for extension of contract services. The total contract value if all options are exercised is $950 million. KBR also won the previous 10-year contract to provide similar services to USMC Blount Island Command in 2009.
"KBR understands the responsibility of the USMC's prepositioning programs to the U.S. military's readiness strategy," said Stuart Bradie, KBR President and CEO. "We will uphold our legacy of ensuring U.S. Marines have quick access to the best combat-ready equipment wherever they are in the world."
KBR is a leading readiness provider of prepositioned stock to the U.S. Marine Corps and U.S. Army. For more than 35 years, KBR and its heritage companies have supported USMC prepositioning programs performing equipment maintenance, supply chain management, and property accountability. It has provided the resources and business processes to support all USMC exercises and contingencies in Europe, the Middle East and Pacific since 1991.
About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program lifecycle within the Government Solutions and Energy sectors. KBR employs approximately 38,000 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 lifecycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logistics
- Technology Solutions, including proprietary technology focused on the monetization of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining and gasification
- Energy Solutions, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU); program management and consulting services
KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
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.
SOURCE KBR, Inc.