HOUSTON – (November 1, 2016) – KBR, Inc. (NYSE: KBR) announced today its joint venture, Aspire Defence, has been awarded a significant Change Order to its existing Project Allenby/Connaught contract with the UK's Ministry of Defence (MoD). The Change Order, with a total value for the joint venture of just over £1.1bn, is for programme management construction and facilities maintenance services across various UK military garrisons in the South of England.
Under the terms of the private finance initiative (PFI) contract, KBR, through its participation in the Aspire Defence joint venture entities, will design and build an additional 130 buildings over the next four years in support of the MoD's Army Basing Programme. Once completed, these new buildings will be included within the existing estate for which KBR is responsible for providing operational support and facilities management for 25 years. The types of services provided range from catering and cleaning to technical stores management and tailoring of uniforms, from the provision of transport to administration support.
Project Allenby/Connaught, the largest infrastructure PFI contract ever let by the Ministry of Defence will run until 2041.The first wave of construction under Project Allenby Connaught was successfully completed in 2014 with a superior safety performance – one of the safest major construction projects in the UK. This latest round of work is expected to be delivered by the summer of 2020.
"KBR has spent the past 10 years delivering this flagship programme for the British Army to re-house soldiers into modern, state-of-the-art accommodation and working facilities, delivering on our commitment to Make Soldiers Lives Better, providing them with the high quality living and working standards that they deserve," said Andrew Barrie, Head of KBR's UK Government Services business.
"We are pleased that through the next four years of work we will continue to make modern facilities available to even more soldiers," Barrie continued.
KBR is a trusted long term partner to the British Military supporting them at home and abroad, from the barracks of Salisbury Plain to the operational bases in Afghanistan.
The KBR revenue associated with this Change Order is estimated to be £567m and will be booked into backlog of unfilled orders for KBR's Government Services Business Segment during Q4 of 2016.
Notes to Editors
About Kellogg, Brown & Root Ltd:
Kellogg Brown & Root Ltd, operating from its UK headquarters in Surrey, operates on a global scale working in different sectors delivering diverse and challenging projects.
Kellogg Brown & Root Ltd is a major Programme Management Contractor delivering some of the world's most challenging projects in the UK and overseas. Please see our website for reference projects.
KBR UK media contact regarding this announcement:
Andrea Newman | External Affairs Director
KBR Government Services (EMEA)
m: 07880 400260
t. 01372 864655
About Aspire Defence
- Aspire Defence has improved the quality of life for British soldiers through provision of modern, high-quality, fully-serviced and purpose-built living and working accommodation in Aldershot and across Salisbury Plain, under the 35-year Project Allenby/Connaught contract (PAC). PAC is the largest infrastructure PFI (Private Finance Initiative) ever let by the Ministry of Defence
- Aspire Defence is comprised of three entities – Aspire Defence Limited (ADL), Aspire Defence Capital Works (ADCW) and Aspire Defence Services Limited (ADSL). ADL holds the contract with the MOD and is owned by four shareholders - KBR (45%) and institutional funds managed by Innisfree (37.5%) and InfraRed [Capital Partners] (12.5% and 5%). ADL sub-contracts to ADCW, which is delivering the construction programme, and ADSL, responsible for a comprehensive range of facilities management services delivered over the 35 years of the contract. Both ADCW and ADSL are 50/50 joint ventures between Carillion and KBR
- For more information about Aspire Defence - www.aspiredefence.co.uk
- For more information about the Army Basing Programme - http://army.mod.uk/structure/33834.aspx