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Press Release

KBR Diego Garcia LLC to Support Diego Garcia Navy Base Ops Boost Sailor Morale

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KBR Diego Garcia LLC to Support Diego Garcia Navy Base Ops Boost Sailor Morale

Publish Date:
11 May 2017

Wire Release

NAVFAC Awards $515M Base Operating Support Services Contract to KBR's Government Services

- (May 11, 2017) -

 KBR, Inc. (NYSE: KBR) announced today that the Naval Facilities Engineering Command (NAVFAC) Pacific awarded a $514.9 million fixed price with award fee contract to KBR Diego Garcia LLC operating under KBRwyle, KBR's global government services business, to provide base operating support (BOS) services at Navy Support Facility Diego Garcia in the British Indian Ocean Territory.

KBR Diego Garcia, LLC will provide a range of services from managing facilities and maintaining base vehicles to general management and administration, safety, port and air operations. KBR Diego Garcia, LLC is expected to perform this work over the next eight years if all option years are exercised.

"We are proud to serve the U.S. Navy's men and women in Diego Garcia," said Stuart Bradie, KBR President and CEO. "This contract win highlights KBRwyle's ability to offer an invigorated and extensive portfolio of services to meet U.S. government requirements. It further solidifies our position as a trusted expeditionary support provider."
KBR is currently performing operations and maintenance services for multiple U.S. Navy and Army military bases around the world, including the largest U.S. base in Africa.

KBR's continuing expertise in service delivery at remote locations for the U.S. Armed Forces underpins this award. Across KBR's combined portfolio of capability, there are common attributes such as providing deep domain expertise, supporting long-lived programs and geographies, a focus on mission-critical execution, and bringing innovation to the full life cycle of any asset, service or system.

For more than 50 years, KBR has provided operations, maintenance, and logistics services across the globe supporting the U.S. government. As a key strategic industry partner to the U.S. Armed Forces, KBR brings the singular, integrated service solution driving innovation for our U.S. government customers as well as the experience and knowledge necessary to expertly support operations at Diego Garcia as a critical asset.

Revenue associated with this project is estimated to be USD $56,909,952 at time of award with a total contract value of $514,947,109. Revenue associated with this project will be booked into backlog of unfilled orders for KBR's Government Services business segment in Q2 of 2017.

About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs over 34,000 people worldwide, with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses:Government Services, serving government customers globally, including capabilities that cover the full life-cycle 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 logisticsTechnology & Consulting, 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; gasification; oil and gas consulting; integrity management; naval architecture and proprietary hulls; and downstream consultingEngineering & Construction, 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) and program management 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 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.

For further information, please contact:
Nelson Rowe
Senior Vice President, Investor Relations
[email protected]

Marit Babin Stout
Vice President, Global Communications & Government Relations
[email protected]

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