KBR, Inc. (KBR) announced that its global Government Services business, KBRwyle, signed a significant contract with the Australian Department of Defence (DoD), becoming just one of four Major Service Providers (MSP) to the Capability Acquisition and Sustainment Group (CASG).
The MSP contract introduces a significant change to the procurement and contracting model for services to CASG program execution. Through this change, CASG has taken the opportunity to adopt a more strategic and integrated approach to its support services requirements through the appointment of a small number of Major Service Providers who are capable of delivering larger, longer-term and more integrated work packages across the CASG domains. This new contract will run for an initial five year period beginning February 1, 2018 with options for an additional six years.
KBRwyle has selected Ernst & Young (EY) to be its strategic subcontractor in the MSP consortia. Also central to KBRwyle's strategy is the engagement, support and development of its comprehensive, non-exclusive supply chain of small and medium businesses. These will complement KBRwyle and EY capabilities to deliver a full range of services to CASG throughout the capability life cycle for the maritime, land, aerospace, joint systems and business management domains.
"This contract win provides a solid foundation for the continued growth of the KBRwyle business in the APAC region," said Greg Conlon, President APAC region. "We have created a long term, competitive model with the potential to deliver over a hundred million dollars in revenue throughout the term of the engagement."
"KBRwyle, with our strategic EY relationship, is committed to playing a key role in working with, growing, and developing the Australian Defence industry sector," Conlon continued.
Revenue associated with this project will be booked, progressively when awarded, into backlog of unfilled orders for KBR's Government Services Business.