KBR Continues to Fortify US Military Readiness Abroad with $950M USMC Contract

June 05, 2019

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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.

Source : KBR