KBR Diego Garcia LLC to Support Diego Garcia Navy Base Ops after GAO Protest Resolved

HOUSTON, Oct. 5, 2017 /PRNewswire/ -- KBR, Inc. (NYSE: KBR) announced today that, consistent with a decision by the Government Accountability Office (GAO), the award of a $515 million fixed price with award fee contract to KBR Diego Garcia, LLC will stand. The work on the contract, awarded in May by Naval Facilities Engineering Command (NAVFAC) Pacific, will begin in November 2017.

Work will be performed by KBR Diego Garcia, LLC operating under KBRwyle, KBR's global Government Services business. The company will 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 support the U.S. Navy's men and women in Diego Garcia and we are ready to get to work," said Stuart Bradie, KBR President and CEO.

"We are proud of this award which we won as a direct result of the government services acquisitions we made in 2016," Bradie continued. "We won this competition with a collaborative company effort including critical contributions from KBRwyle, the global government services business created by our recent acquisitions."

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 will be booked into backlog of unfilled orders for KBR's Government Services business.

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.

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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.

SOURCE KBR, Inc.

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