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KBR Awarded Combat Water Supply System Contract for UK Ministry of Defence

Wire Release

HOUSTON – (March 14, 2018) – KBR, Inc. (NYSE: KBR) announced today it has been awarded a contract by the UK's Ministry of Defence (MOD) for the design, manufacture, supply and storage of a Combat Water Supply System (CWSS) plus reimbursable Maintenance, Repairs, and Operations (MRO) services. 

Under the terms of the contract, KBR will bring in to service a water purification, storage and distribution system, designed to deliver potable and palatable water to deployed UK forces.  Once operational, KBR will provide fully integrated Contractor Logistics Support (CLS) through to 2025 with responsibility for the design, manufacture, testing and supply of each of the variants of the CWSS. 

"I am delighted we are working with KBR to deliver this critical capability to our land forces," said Major General Colin McClean, Director Land Equipment for Defence Equipment and Support, the UK MOD's procurement organization. "The Combat Water Supply System will ensure the availability of high quality water wherever we are in the world, drastically reducing our reliance on bottled water; saving money and lessening the environmental impact."

The objective of the CWSS program is to deliver an end-to-end solution spanning the provision of water from its source to the point of use.  Specifically, CWSS will be required to purify water from various sources, test and assure water quality, store, distribute and issue water to doctrinally mandated volumes.  During the contractor logistics support phase, KBR will be responsible for the maintenance of the CWSS capability to agreed Readiness and Availability levels. 

The award strengthens KBR's position as a key supplier to the UK MoD for critical capabilities, both in the UK and on deployed operations and comes following a number of other awards supporting the MOD on overseas deployments.

"We are extremely proud of our long standing record in delivering operational support to the UK MOD," said Jay Ibrahim, KBR President, EMEA. "This award is a reflection of the confidence that the MoD places in us to deliver critical operational infrastructure and is testament to the collaborative relationship that has been built over many years of working side by side with the UK's Armed Forces."

The contract value for this project is $42 million and was booked into the backlog of unfilled orders for KBR's Government Services Business Segment in Q4 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 (including our joint ventures), 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 logistics
  • Technology & 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 consulting
  • Engineering & 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

Brenna Hapes
External Global Communications

UK Media
Andrea Newman
Director External Affairs
01372 864655 / 07880 400260