Contracts Awarded Since 2001
From Halliburton's website (edited for clarity)###
HALLIBURTON AWARDED $175 MILLION CONTRACT BY PEMEX: May 6, 2004 - Halliburton subsidiary Halliburton de Mexico was awarded a 2-year, $175-million contract to drill 27 turnkey wells in Southern Mexico by Petroleos Mexicanos S.A. (Pemex), the state-owned oil company of Mexico. As part of the contract, Halliburton will provide directional drilling, MWD, LWD, drilling mud, bits, cementing, logging, testing, acidizing, coil tubing, and completion services. Parker Drilling will provide the rigs and drilling crews to Halliburton for the project.
KBR PROVIDES ENGINEERING DESIGN SERVICES FOR SHELL GAS TO LIQUIDS PROJECT IN QATAR: April 26, 2004 - KBR is providing engineering services for the onshore design of a $5 billion Gas to Liquids (GTL) project in Qatar under a Front End Engineering Design (FEED) contract awarded to its joint venture partner JGC Corporation of Japan by Shell Global Solutions.
HALLIBURTON ANNOUNCES AGREEMENT WITH PETROBRAS ON BARRACUDA-CARATINGA PROJECT: April 19, 2004 - Halliburton announced today that its KBR subsidiary has reached an agreement in principle with Petrobras that will resolve outstanding issues regarding the Barracuda-Caratinga project. The agreement in principle, which is also subject to project lender approval and final agreement, will settle outstanding claims and extend project deadlines. Halliburton also announced that it will take additional operating losses on its Barracuda-Caratinga project in the first quarter of 2004 of approximately $62 million or $0.14 per share after tax. The additional charges follow a thorough review of the project indicating higher cost estimates, schedule extensions and other factors.
KBR UPDATES DEFINITIZATION SCHEDULE ON LOGCAP CONTRACT: March 17, 2004 - KBR is pleased with the decision by the Army Materiel Command (AMC) that past invoices will be paid without withholding 15 percent. The decision on past invoices is consistent with our understanding of LOGCAP III contracts. We do not believe the 15 percent withhold is applicable to the LOGCAP III contract and this is a complicated issue which we are currently working through with our customer. Despite the challenging environment that exists, to date KBR had been ahead of the revised schedule in the definitization stage of its task orders. However, just this week, AMC has been mandated to reduce their overall budget, thereby requiring that KBR re-estimate all work-to-date on the LOGCAP III contract. Because of this change, this will have an impact on the definitization schedule and could delay the date when the potential 15 percent withhold is put in place. Again, we do not believe the 15 percent withhold is applicable to the LOGCAP III contract. "KBR's working capital investment in Iraq-related work now exceeds $1.2 billion," said Randy Harl, president and chief executive officer, KBR. "There are very few companies in the world that could or would adapt this quickly while, at the same time, finance an operation of this magnitude. KBR pays for the equipment, supplies, and manpower and is reimbursed after the government much later after a detailed review and clarification of any bill submitted." If 15 percent of future billings are withheld from KBR pending final definitization approvals, it will be necessary to impose a corresponding 15 percent withholding on our subcontractors, because of the large working capital burden KBR is already carrying. This is in accordance with contract agreements with subcontractors. We remain confident about working through these and other issues in a cooperative manner.
HALLIBURTON SETS THE RECORD STRAIGHT ON KBR'S GOVERNMENT CONTRACTS: March 11, 2004 - Halliburton today strongly responded to incomplete information presented to Congressional Democrats regarding KBR's work on government contracts in the Middle East. On March 10, Congressman Henry Waxman, Ranking Minority Member of the House Government Reform Committee, published a memorandum to the Democratic Members of the Committee, reporting on alleged “new information about Halliburton Contracts”. “We are disappointed, once again, that selective portions of audit reports have been released publicly even before KBR and the Army have made final reviews of the information,” said Randy Harl, president and chief executive officer, KBR. “Releases of partial reports are inappropriate because the true and complete story cannot be conveyed.” In fact, the release of these reports could violate established Federal Policy. “Once again, we have not been given a chance to respond to accusations before they are released publicly. We believe that every point in Mr. Waxman’s letter has a reasonable explanation or could be refuted outright.” For example, the facts show that KBR delivered fuel to Iraq at the best value, the best price, and the best terms and in ways completely consistent with government procurement policies. KBR’s client, the US Army Corps of Engineers, provided approval and direction for KBR to continue this important work so the people of Iraq would have fuel for transportation, cooking and heating. The points in Mr. Waxman’s memo state that a round trip for fuel transportation can be completed in two-and-a-half days. The facts show that, on average, a round trip to Baghdad generally takes up to five times as long to complete, due to threat and security conditions. Therefore, actual transportation costs are higher than represented in Mr. Waxman's letter. “A call to Halliburton would have provided context to the discussion,” added Harl.
Similarly, Mr. Waxman quotes a number that changed in cost estimates for a task order. The facts show that the scope of this task order was reduced, and costs were lowered accordingly. “Of course, cost estimates change because the scope of work requirements are dynamic and ever changing and it would be inappropriate for anyone to imply otherwise,” said Harl.
In addition, a comment was made about the food services estimates and costs. A closer examination of KBR's response to the DCAA audit would show that KBR disclosed that vendors were terminated by KBR for default. Without all of the facts, it is inappropriate to criticize KBR. Representatives of DCAA were present when the format and compliance schedule was agreed to with KBR’s client. At that meeting, all parties agreed that the task orders need to be completed and provided to the government in a timely manner. KBR is ahead of that schedule and we have completed the first analysis for this report, having delivered it this week. “This is an important piece of information that was left out of the letter from Mr. Waxman,” stated Harl. "We can take criticism when it is justified because we are our harshest critics," explained Harl. "It's the only way to improve. Criticism is not failure. We pledged to cooperate and we have fully cooperated with the DCAA and all of the regulatory agencies overseeing our contracts. “Oversight of the public’s money is important —especially during times of war,” Harl added. “You must supply the best services and value at the best price possible often under pressure. That is why we at Halliburton are especially troubled when the regulatory processes created to ensure public confidence in the procurement system are bypassed for a few sensational headlines.
“All contractors involved in the effort freeing the Iraqi people are, of course, subject to oversight,” cautioned Harl. All government entities and government contractors need to review their performance, learn from the experience and look for areas of improvement. Halliburton continues to be a good steward of taxpayer money during Operation Iraqi Freedom, just as the company has been for the past 60 years of military support. “We are proud of our work in the Middle East today,” Harl stated. “Our very talented team of employees is making a difference in the lives of U.S. soldiers, making them feel a little closer to home. “We will continue to support the soldiers even though the price for this mission is the cost of having to defend ourselves at home,” concluded Harl.
HALLIBURTON: KBR DELIVERED FUEL AT BEST VALUE, PRICE, TERMS: February 24, 2004 - Media reports have indicated that the Inspector General's office is further examining allegations of fuel delivery in Iraq. Halliburton has not received any notification of a further development in the examination. The company says, if the reports are true, they would represent a normal, routine step in any kind of high profile inquiry. “This is a step toward resolution of the issue. In the current political environment, it is expected,” Wendy Hall, company spokeswoman said. “The facts show KBR delivered fuel to Iraq at the best value, the best price and the best terms. It is important to understand that this is a forward step to study the issue. It is not a new attack on Halliburton," said Hall. “It is also important to understand the difference between fact and allegations. It is not fact that KBR has overcharged.” Hall emphasized that the US Army Corps of Engineers approved that the fuel be delivered from Kuwait, even though it was at a higher cost than fuel imports from Turkey. “It's unfair to accuse Halliburton of paying too much for Kuwaiti fuel when KBR was told to buy the fuel and given approval to purchase it from a specific supplier,” said Hall.
HALLIBURTON VOLUNTARILY SUSPENDS BILLING FOR THE NEXT MONTH: February 16, 2004 - Halliburton (NYSE:HAL) today said it has offered an unprecedented response to the Department of Defense regarding the number of meals which have been served to the troops. The company today said it has temporarily suspended certain invoicing of subcontractor services for meal planning, food purchase and meal preparation for soldiers. Simultaneously, Halliburton said the company will continue working with our customer, the US Army, to finalize an agreement as to how to reconcile the differences between meals ordered by the Department of Defense and the 'boots through the door' number of meals actually served to the soldiers. While the company cannot predict when the methodology will be agreed upon with the military, it is important to understand that the amounts that are being withheld from billing have the potential to increase as well as decrease. “It is important to understand that this is not any sort of ‘admission’. As a responsible government contractor it is the right thing to do,” said Randy Harl, president and chief executive officer, KBR. “KBR is a good steward of the taxpayers' dollars.” As the reconciliation process continues, the difference between the number of meals planned and the amount of meals actually served to the troops on the ground first totaled $16 million and shortly thereafter an additional $11.4 million. In an SEC filing last week, Halliburton confirmed it agreed with the DCAA to suspend subcontractor billings of $34.5 million. In addition, the company now is voluntarily holding approximately $140 million of subcontractor invoices for food services that have already been provided to the military. Halliburton will defer further billing to the US Government for these subcontracted services until an agreement is reached. Despite taking these actions, the company said it expects the basic issues of breakfast, lunch and dinner to continue to be the topic of political discussions. The company says it is willing to wait until the facts catch up to the rhetoric.
BRITISH CONLOG CONTRACT: Feb. 3, 2004 - KBR is the prime contractor for logistics services to the British military. The contract is similar to KBR's LOGCAP contract in America. It's known as CONLOG (Contracts for Logistics Support) and provides logistics and infrastructure support to Permanent Joint Forces Headquarters (PJHQ) operations and exercises worldwide for the United Kingdom. The contract is for seven-years duration. The contract over the seven-year period will have a core value of approximately £12m but based upon PJHQ activities over recent years the value of the non-exclusive enabled element could be in the region of £50m per year.
KBR AWARDED CENTCOM CONTRACT: January 24, 2004 -- KBR was awarded a five year contract with the United States Army Corps of Engineers' Transatlantic Programs Center (CENTCOM), valued for up to $1.5 billion. The contract has a monetary ceiling set at $500 million for the first year of the contract. After the first year, the contract will have four one-year options for renewal, and the option years will each have a yearly ceiling of $250 million. The contract requires a full range of engineering services such as construction, including new work, restoration, renovation or repair; combined design-build activities; and temporary base operations and short-term operations and maintenance services. CENTCOM's areas of operation encompass 25 nations from the Horn of Africa into Central Asia.
HALLIBURTON SUBSIDIARY WINS FOLLOW-ON OIL CONTRACT IN IRAQ: January 16, 2004 -- Halliburton confirmed the US Army Corps of Engineers awarded KBR the contract to continue its operations for the Restore Iraqi Oil (RIO) program in the southern section of Iraq. The $1.2 billion RIO continuation contract will run for up to two years. The contract replaces the original no-bid contract awarded exclusively to KBR in the days before the Iraq war started in March 2003. Under this 2004 contract, KBR's major centers of operation include Baghdad, Basrah and Kirkuk, Iraq, as well as Kuwait City. This two-year contract is a cost-plus award fee with three one-year options. The maximum value for the life of the competitively bid contract for the southern oil fields will be $1.2 billion, but war-time events can change the actual amount of the contract.
INDONESIA SELECTS LANDMARK AS BUSINESS PARTNER FOR NATIONAL DATA CENTER: December 18, 2003 -- Ministry of Energy and Mineral Resources Awards 10 year contract - Landmark Graphics Corporation, a wholly owned business unit of Halliburton announced that its representative company in Jakarta, PT Landmark Concurrent Solusi Indonesia, signed a 10-year business partner contract with the Agency for Research and Development in the Ministry of Energy and Mineral Resources of the Republic of Indonesia. The agreement will culminate in the opening and ongoing operation of Indonesia's National Data Centre (NDC) for petroleum, energy and minerals data in 2004.
LANDMARK AWARDED $25M CONTRACT FOR NIGERIAN NATIONAL DATA BANK: December 12, 2003 -- First national multi-client petroleum data bank in Africa - Landmark Graphics Corporation, a wholly owned business unit of Halliburton, announced it has been awarded a five-year contract from the Department of Petroleum Resources in Nigeria valued at $25 million. The contract, awarded to Landmark and its associate Integrated Data Services Limited (IDSL), calls for the design, development and operation of a National Data Repository (NDR) for Nigerian exploration and production (E&P) data using Landmark's PetroBank technology.
KBR SELECTED AS PREFERRED BIDDER FOR CONLOG: Aug. 15, 2003 -- KBR was selected by the UK Ministry of Defence as the Preferred Bidder for the Contract for Logistics Support (CONLOG) to provide support services to the British armed forces. The award is for a seven-year enabling contract under which KBR will deliver logistic support services to British forces worldwide. As part of the contract, a small KBR team will be embedded into the Permanent Joint Force Headquarters at Northwood to provide planning input for a wide range of operational services.
KBR CONSORTIUM NAMED AS PROVISIONAL PREFERRED BIDDER FOR BRITISH ARMY GARRISON IMPROVEMENT PROJECT: July 23, 2003 -- KBR and Mowlem plc joint venture, Aspire Defence, has been named by the Ministry of Defence (MoD) as the provisional preferred bidder for the £4billion PFI contract to upgrade and provide a range of services to the British Army's garrisons at Aldershot and around Salisbury Plain. In addition to a £3billion package of services to be delivered over 30-years, the contract includes a £1billion construction programme which will improve soldiers' single living accommodation, leisure and recreational facilities, technical and administrative accommodation.
BRITISH NATIONAL HEALTH SERVICE CONTRACT: March 28, 2003 -- KBR announced today that it has been awarded the contract from the Department of Health for the provision of programme management services for its £2.3 billion (US$3.6 billion) National IT Programme. The programme is aimed at restructuring and modernising the National Health Service's (NHS) information technology KBR is the engineering and construction subsidiary of Halliburton (NYSE: HAL).
IRAQI OIL WELL FIRE FIGHTING CONTRACT: March 24, 2003 -- KBR was awarded a no-bid contract from the US Army Corps of Engineers to put into action a contingency plan for the Department of Defense for assessing and extinguishing oil well fires in Iraq and evaluating and repairing, as directed by the US government, the country's petroleum infrastructure. KBR has subcontracted the firefighting portion of the work to Houston-based companies Boots & Coots International Well Control, Inc. and Wild Well Control, Inc.
KBR WINS MAJOR PIPELINE EXPANSION PROJECT: August 28, 2002 -- KBR was awarded a contract by Tarrant Regional Water District in Texas for design of a high capacity expansion to the Richland Chambers 90-inch diameter raw water supply pipeline. The project will expand the pumping capacity of two booster pump stations, enabling additional raw water supply delivery to the City of Fort Worth and the Tarrant County region with increased system reliability and operability. Tarrant Regional Water District provides raw water to 1.5 million customers in a 10-county service area in North Central Texas, including the cities of Fort Worth and Arlington.
KBR AWARDED SITE SUPPORT SERVICES CONTRACT AT LOS ALAMOS NATIONAL LABORATORY: August 8, 2002 -- The U.S. Department of Energy's Los Alamos National Laboratory selected KBR as the new site support services contractor. KBR, in a joint venture with the Shaw Group, Inc. (Shaw) and Los Alamos Technical Associates (LATA), will function as a subcontractor to the University of California, which operates the Laboratory. The University's decision to re-compete the subcontract was accompanied by the announcement of its intent to significantly enhance facility operations to bring it to a level comparable to the excellence in science for which Los Alamos National Laboratory is already recognized. The contract, which includes a five-year base period, with five, one-year options, has an approximate annual value of $145 million. The scope includes maintenance services for structures, systems and components in non-reactor nuclear, special use, and non-hazardous facilities. The KBR team will provide maintenance, maintenance planning and work control, including state-of-the-art preventive and predictive maintenance.
KBR SIGNS CONTRACT FOR THE CZECH REPUBLIC'S D47 MOTORWAY: July, 2002 -- KBR, in consortium with others, signed a contract with the Czech Government for a 30-year concession to design, build, finance and operate the D47 motorway in the Czech Republic. The US$1.5 billion 80km motorway, part of the Trans-European Network of motorways linking the Baltic with the Balkans, will connect Ostrava on the Polish border with the existing motorway network at Lipnik Nad Becvou. Financial close for the project is scheduled for autumn 2002. This is the first highway project in the Czech Republic to be procured using a payment structure based on shadow tolls.
KBR WINS JOB ORDER CONTRACT WITH DEFENSE INTELLIGENCE AGENCY: June 17, 2002 -- KBR Government Operations division was awarded a Job Order Contract (JOC) to support the Defense Intelligence Agency (DIA). The DIA contract is valued at $12.5 million over five years, with a one-year base period and four one-year options. The work includes facilities upgrades, alterations, renovations, repairs and minor construction throughout their facility. Work under the JOC IV contract includes facilities upgrades, renovations, repairs and minor construction at Alaska's three primary Army forts - Richardson, Wainwright and Greely - on a job order basis.
KBR JOINT VENTURE TEAM WINS FOURTH CONSECUTIVE JOB ORDER CONTRACT FROM US ARMY: June 5, 2002 -- KBR Government Operations division, along with its joint venture partner, KUK Construction LLC, was awarded its fourth consecutive Job Order Contract (JOC) for the Army Corps of Engineers at Forts Richardson, Wainwright and Greely in Alaska. The Alaska JOC IV contract is valued at $125 million over five years, with a one-year base period and four one-year options. KUK, a native Alaskan-owned company, has been a subcontractor to KBR while participating in a Department of Defense-sponsored mentor-protégé program, and will now be managing partner of the 51/49 joint venture.
HALLIBURTON KBR WINS BASE OPERATIONS SUPPORT CONTRACT FROM U.S. NAVY: March 6, 2002 -- Halliburton KBR's Government Operations division was awarded its third consecutive contract for Base Operating Support Services (BOSS) for the Naval Air Facility at El Centro, California, the home of the Blue Angels. The El Centro contract is valued at $46 million over 4 ½ years, with a six-month base period and four one-year options. The work includes operations and maintenance of utility systems, HVAC, refrigeration and compressed air equipment, ground electronics, weapons ranges, support equipment, family housing facilities, and buildings, structures, and grounds maintenance. Work also includes food service, supply services, transient aircraft services, and morale, welfare, and recreation services.
HALLIBURTON KBR CAPTURES MILITARY DISTRICT OF WASHINGTON ACQUISITION CENTER JOB ORDER CONTRACT: February 12, 2002 - Halliburton KBR Government Operations was awarded a contract by the U.S. Army Military District of Washington Acquisition Center for maintenance, repair, and minor construction projects throughout Virginia, Maryland, Delaware, West Virginia and the Washington, DC, area. This five-year, $75 million contract provides flexible and responsive contracting capability for government or institutional facilities. It cuts design, engineering, construction and contract procurement lead times by awarding long-term contracts for a wide variety of renovation, repair and minor construction jobs.
HALLIBURTON KBR RECEIVES TWO CONTRACTS FROM NATIONAL INSTITUTES OF HEALTH: December 18, 2001 -- Halliburton KBR's Government Operations division, formerly known as Brown & Root Services, was awarded its third consecutive task order contract for the National Institutes of Health (NIH) in Bethesda, Maryland. Halliburton KBR has been performing task order work for NIH since 1993 under two previous contracts. The contract includes a one-year base period, with four one-year options. The total contract maximum is $200 million, making the NIH Task Order Contract one of the largest single-award contracts of its type in existence. The work includes construction, maintenance, and renovation of laboratories, research facilities, patient-care facilities, and administrative spaces. To date, KBR has executed more than $170 million in task orders. In a separate announcement, Halliburton KBR was also awarded a one-year, $26 million Indefinite Delivery Indefinite Quantity (IDIQ) contract for security upgrades and modifications at the main NIH campus in Bethesda.
HALLIBURTON KBR WINS LOGISTICS CIVIL AUGMENTATION CONTRACT FROM US ARMY: December 17, 2001 -- Halliburton KBR Government Operations division was awarded the U.S. Army Logistics Civil Augmentation Program (LOGCAP) III contract. Halliburton KBR Government Operations was formerly known as Brown & Root Services. Established by the U.S. Army to fulfill the Department of Defense's global mission during contingency events, LOGCAP provides the warfighter with additional capabilities to rapidly support and augment the logistic requirements of its deployed forces through use of a civilian contractor. Brown & Root Services served as the original LOGCAP contractor and supported contingency events from 1992 to 1997 in locations ranging from Somalia to Haiti and subsequently the Balkans. With the continued presence of U.S. troops in Bosnia, Brown & Root Services was awarded a two-year sole source contract by the US Army Corps of Engineers' Transatlantic Programs Center, on behalf of US Army Europe. Subsequently, the Corps competitively awarded Brown & Root Services a five-year contract, beginning in May 1999, to provide logistics services throughout the Balkans. LOGCAP III is a 10-year Task Order contract, with a one-year base period and nine one-year options. Over the past 10 years, Halliburton KBR provided over $2.5 billion in support services to deployed forces under LOGCAP I and the subsequent Balkans contracts. The contract requires the contractor to deploy within 72 hours of notification and to deliver Combat Support and Combat Service Support (CS/CSS) for 25,000 troops within 15 days. Halliburton KBR must be ready to furnish these warfighter services 24 hours a day, 7 days a week, 365 days a year under any condition and at any location around the globe. By working with the Army planners, Halliburton KBR, drawing on its proven experience, will provide for the construction of facilities and infrastructure of base camps including billeting, mess hall, food preparation, potable water, sanitation, showers, laundry, transportation, utilities, warehousing and other logistical support. Also included is support of the Reception, Staging, Onward Movement, Integration (RSOI) process of U.S. Forces as they enter or depart their theater of operation by sea, air or rail. Contract: operations spread across 60 different site locations in Kuwait and Iraq. Revenues on these projects increased from $320 million in the second quarter of 2003 to over $2 billion in the fourth quarter of 2003.
HALLIBURTON UNIT SELECTED FOR DOE GAS HYDRATES PROGRAM: December 6, 2001 -- Westport Technology Center International, an independent E&P service laboratory owned by Halliburton Energy Services, was awarded a contract by the U.S. Department of Energy to characterize gas hydrate reservoirs and develop simulators for methane gas production from Gulf of Mexico hydrates. The contract, valued at $820,000 (U.S.), will help expand the current knowledge and understanding of gas hydrates through laboratory experiments and computer modeling. Westport will also coordinate the transfer of this new knowledge into focused laboratory services and software tools that can be used by operators in their prospect evaluation, well planning, and life-of field management processes.
HALLIBURTON KBR TO EVALUATE SUBIC BAY CAPABILITIES: November 21, 2001 -- Halliburton KBR signed an Agreement with the Philippines' Subic Bay Metropolitan Authority (SBMA) for exploration and evaluation of a potential opportunity to redevelop the former U.S. Navy Ship Repair Facility at Subic Bay. Following the signing of the Agreement at the Willard Hotel in Washington DC, in the presence of Her Excellency Gloria Macapagal-Arroyo, President of the Republic of the Philippines, Halliburton KBR and SBMA will cooperate in an attempt to commercialize the former Navy facility. Potentially, with a diverse portfolio of maritime logistics and maintenance work, the operation could deliver up to 4,000 jobs for skilled Filipino tradespeople and open up numerous second tier business opportunities for Philippine business owners.
WORLD'S LARGEST AIRPORT PEOPLE MOVER SYSTEM UNDER CONSTRUCTION: November 9, 2001 -- KBR is working rapidly to complete architectural and engineering design, design management, construction administration and quality assurance for an $846 million Automated People Mover (APM) system at Dallas/Fort Worth (DFW) International Airport in Texas. When completed in 2005 to meet an accelerated schedule, the APM system will be the largest airport people mover system ever built, and will fulfill DFW's goal of speedier passenger connection times.
KELLOGG BROWN & ROOT'S GOVERNMENT OPERATIONS RECEIVES CONTRACT FROM NATIONAL RECONNAISSANCE OFFICE: September 25, 2001 -- KBR's Government Operations was awarded a Design and On-Call Construction Contract (DOCCC) from the National Reconnaissance Office (NRO). KBR has been performing DOCCC work for the NRO since 1990 under a similar contract. The contracted announced here includes a two-year performance period, with three two-year options, for a total of eight years. Total contract value is expected to be $50 million if all options are exercised. This contract is essentially a consolidation of the former On-Call Construction Contract (OCCC) held by KBR since 1990, and the Facilities Support Contract previously held by TRW. The DOCCC will provide engineering, design, construction, construction management, and technical support to the mission of the Office of Space Launch, based at Los Angeles Air Force Base in California. Work under this contract will also be performed at Vandenberg AFB, CA; Cape Canaveral Air Station, FL; Schriever AFB, CO; and other classified sites worldwide in support of the OSL, a directorate of the NRO.
HALLIBURTON UNIT PICKED TO PARTICIPATE IN PROGRAM TO REDUCE THREAT OF WEAPONS OF MASS DESTRUCTION: September 10, 2001 -- A KBR Government Operations team was selected by the Department of Defense's (DOD) Defense Threat Reduction Agency (DTRA) to participate in the Cooperative Threat Reduction (CTR) program. The CTR program was established by DOD to respond to the threat of proliferation of nuclear, chemical and biological Weapons of Mass Destruction (WMD) and related expertise and knowledge from the states of the Former Soviet Union. KBR is one of five contracting teams chosen to provide support for the CTR program under a five-year initial contract, with one five-year option based on performance for an estimated $5 billion. The KBR team includes Devonport Management Limited; Black & Veatch International; Byelocorp Scientific, Inc; Duke Engineering & Services; EAI Corporation; Edlow International Company; Harding ESE, Inc.; Pratt & Whitney Space Propulsion and Russian Operations; and SRS Technologies. To perform the tasks related to the contract objectives, KBR will set up a primary project office in Moscow. Currently, KBR is executing a $283 million project for the DTRA in Russia to eliminate liquid-fueled Inter-Continental Ballistic Missiles (ICBM) and their silos. In addition, KBR recently completed a four-year contract for the DTRA in Kazakhstan where Inter-Continental Ballistic Missiles were dismantled and the land returned to the government for agricultural use. KBR opened a corporate office in Moscow in 1991.
KELLOGG BROWN & ROOT'S GOVERNMENT OPERATIONS AWARDED JOB ORDER CONTRACT AT FORT KNOX, KENTUCKY: September 6, 2001 -- KBR's Government Operations has been awarded a Job Order Contract (JOC) for the U.S. Army's Fort Knox facilities in Kentucky. KBR has been in the Fort Knox area performing similar work continuously for the past 10 years on three other projects. Under the five-year contract, Kellogg Brown & Root's Facilities, Modification & Repair group will be responsible for project management, new construction, renovations and other projects which will be performed on a task order basis. The contract has a one-year base, with four option years. Up to $3 million can be awarded each year, for a total contract value of up to $15 million over the next five years.
BROWN & ROOT SERVICES RECEIVES US NAVY CONCAP CONTRACT: May 22, 2001 -- Brown & Root Services, a division of KBR, was awarded the CONCAP (construction capabilities) contract by the Atlantic Division of the Naval Facilities Engineering Command (LANTDIVNAVFAC) to provide private sector construction and related services to the U.S. Navy and other Department of Defense agencies and missions worldwide. The contract, an Indefinite Deliver/Indefinite Quantity (IDIQ), has a $300 million ceiling over a five-year period. BRS was chosen for the contract award because its proposal was evaluated by LANTDIV as the best overall value through the competitive negotiation process. The US Navy uses the CONCAP contract to support immediate needs associated with regional emergencies caused by natural disasters, military-led or military-supported humanitarian assistance or military conflicts. Construction and construction-related engineering services may be in support of the US Military forces in a stand-alone status or as part of the United Nations North Atlantic Treaty Organization multinational force or other entities, as necessary.
US ARMY AND HALLIBURTON PARTNER TO PROVIDE JOB OPPORTUNITIES TO QUALIFIED SOLDIERS: May 21, 2001 -- The U.S. Army Recruiting Command (USAREC) and Halliburton Company signed an agreement that will provide priority hiring status to qualified soldiers participating in the Partnership for Youth Success Program (PaYS). PaYS, a strategic partnership program between the Army and major U.S. companies, helps the Army to attract and train talented young people and guarantees participating businesses a consistent, dedicated flow of skilled and responsible job candidates, according to Major General Dennis D. Cavin, commander, U.S. Army Recruiting Command. Under terms of the agreement, young enlistees interested in gaining specific job training and qualifications commensurate with opportunities at Halliburton will receive that training while in the Army. As part of the enlistment process, recruits sign a letter of intent to work for Halliburton upon completion of their term of service. As the end of their term approaches, the soldiers then have the opportunity to interview with Halliburton for a specific job at a specific location.
KELLOGG BROWN & ROOT'S GREENS BAYOU FAB YARD RECEIVES $27 MILLION CONTRACT TO FABRICATE PILINGS FOR WOODROW WILSON BRIDGE NEAR NATION'S CAPITOL: April 24, 2001 - KBR was awarded a contract valued at $27 million to provide fabricated steel pilings as part of a project to replace the Woodrow Wilson Bridge. The project, located just outside Washington D. C., carries Interstate I-95 and I-495 (Capitol Beltway) across the Potomac River between Maryland and Virginia. Fabrication of the steel piles will begin May 2001 approximately 30,000 tons and will necessitate the rolling of 75,832 feet (14.36 miles) of pipe at the Greens Bayou Fabrication Yard in Houston and are scheduled for completion in May 2002.
BROWN & ROOT CONSORTIUM SELECTED AS PREFERRED BIDDER FOR UK MINISTRY OF DEFENCE'S HEAVY EQUIPMENT TRANSPORTER CONTRACT: January 24, 2001 -- Fasttrax, a consortium led by Brown & Root Services was selected by the British Ministry of Defence as the preferred bidder for the 20-year Private Finance Initiative (PFI) contract for the provision of Heavy Equipment Transportation (HET) services to the British Army. Under the contract, worth more than £300m, Fasttrax will provide heavy equipment transportation services to the Army in both peacetime and conflict scenarios. This equipment will replace the Army's current fleet of tank transporters. The HET contract is a 'Pathfinder' PFI project and includes the provision of a service initially based on one third Sponsored Reserves. Brown & Root Services has worked closely with the Ministry of Defence to develop the thinking on the use of Sponsored Reserves and there is a high level of confidence in the ability to provide the HET service in this way. In preparation for delivering the HET service, Brown & Root Services has already carried out extensive market surveys and has interviewed a large number of potential applicants.