KBR, Inc. announced its joint venture, Aspire Defence, has been awarded a significant change order expanding services to be provided under an existing contract for the UK's Ministry of Defence (MoD). The change order, with a total value for the joint venture of approximately USD$1,4 billion, calls for construction and program management services and facilities maintenance at the UK major military estate -- Project Allenby/Connaught -- in the South of England.

Under the terms of the change order, KBR, as part of the Aspire Defence joint venture entities, will design and build an additional 130 buildings over the next four years in support of the MoD's Army Basing Program. Once completed, these new buildings will be included within the existing estate for which KBR is responsible for providing operational support and facilities management for 25 years. The types of services provided range from catering and cleaning to technical stores management and tailoring of uniforms, from the provision of transport to administration support.

Project Allenby/Connaught, an infrastructure private finance initiative (PFI) contract let by the Ministry of Defence will run until 2041. KBR, in partnership with Carillion, is responsible for managing the existing Army estates including providing a full range of hard and soft facilities management services, as well as overseeing the design, consent, demolition, new build, and refurbishment of garrison buildings for Project Allenby/Connaught. The first wave of construction under this project was successfully completed in 2014 with a superior safety performance. The additional work under the change order is expected to be delivered by the summer of 2020.

The KBR revenue associated with the Change Order is estimated to be US$736 million and will be booked into backlog of unfilled orders for KBR's Government Services Business Segment during Q4 of 2016.

Stuart Bradie, KBR President and CEO said:

"This award is indicative of KBR's success over the past ten years improving accommodations and working facilities for the UK military through Project Allenby/Connaught. We will continue to successfully deliver on this significant project and look forward to further growing and strengthening our enduring relationship with the UK military. Further, this award follows on our third quarter backlog growth this year, significantly increasing our government services backlog through the fourth quarter, and positions us well for the future, with a pipeline of long-term, reimbursable, low-risk service contracts into 2017 and beyond.