KBR Awarded United States Army Europe (USAREUR) Support Contract (USC II)

HOUSTON - Friday, November 18th 2011 [ME NewsWire]

(BUSINESS WIRE)-- KBR (NYSE:KBR) today announced it was awarded a hybrid Firm-Fixed-Priced (FFP)/Cost-Plus-Fixed-Fee (CPFF) Single Award Task Order Contract (SATOC) for the United States Army Europe (USAREUR) Support Contract (USC II). The contract is for a one-year base and four one-year option periods for a total of five years. The maximum capacity of the contract is estimated at $245 million over the five-year lifespan of the contract.

KBR will provide Base Operations and Support Services to USAREUR throughout their area of responsibility (AOR) encompassing 51 countries. Initially, services will be provided in Kosovo and Romania. Work includes functions such as: Facility Maintenance & Utility, Troop, Operational and Construction Services. This USC contract is the fifth contract in the life of the program, all managed by the Middle East District and its predecessors.

KBR is the incumbent on the existing USC contract and has operated continuously for this client in the Balkans since 1995. Currently, KBR is providing services in Kosovo, Romania and Germany under the USC Contract.

“I am pleased that KBR has been selected to continue its services for the United States Army Europe,” said Mark Williams, Group President, Infrastructure, Government & Power. “This contract aligns with KBR North American Government & Logistics’ (NAGL) objective to leverage the company’s position in the Department of Defense sustainment market outside the Continental United States (OCONUS) by maintaining KBR’s incumbency status on this BOS contract. It also supports our goal to grow OCONUS contingency work since services could be activated anywhere in the USAREUR AOR.”

KBR has been instrumental in the military’s success in the region from the DoD’s initial deployment on a fast-paced contingency mission to their current sustainment operations. The scope of work being proposed under the new contract has not significantly changed from the current contract with the notable exception that Africa has been excluded from the AOR.

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial, and commercial markets. For more information, visit www.kbr.com.

Contacts

KBR

Sharon Bolen, Director, Administration, 713-753-7615

mediarelations@kbr.com



Rob Kukla, Jr., Director, Investor Relations, 713-753-5082

investors@kbr.com