KBR Set To Provide Delivery Support To Sellafield In U.K.
Zacks Investment Research | May 17, 2019 08:24AM ET
KBR, Inc. (NYSE:KBR) has received a £500-million contract from the U.K. Government's Nuclear Decommissioning Authority-owned Sellafield Ltd. to act as one of the delivery partners for the latter’s major construction projects and infrastructure program in the United Kingdom.
KBR will support safe and secure decommissioning of the Sellafield nuclear site. This framework contract, which has a total value of approximately £4.5 billion, has a duration of more than 20 years.
Per the contract, KBR will provide program and project management services, along with project-specific delivery plans for all major projects at Sellafield, including mobilization of resources, coordination of logistic requirements and interpretation of delivery strategies. Also, it will coordinate the development of an integrated management system, and procurement management, estimating, quantity surveying, risk management, document controls and commercial services.
Additionally, the company, as an integration partner, will conjugate with clients and three other Program and Project Partners to form an integrated delivery team. The team along with supply chain will improve capability, enhance project delivery, and support social value and local economic development. Also, the team will contribute to the U.K. industrial strategy and nuclear sector deal.
KBR has been supporting nuclear programs in the U.K. over the past few years. On Apr 26, 2019, the company received a support contract from the U.K. Ministry of Defence to provide communications network support and training services in the Middle East.
As of Mar 31, 2019, KBR recorded a backlog of $13.6 billion compared with $13.5 billion in the corresponding period of 2018, highlighting its underlying strength. Markedly, nearly 80% of the backlog represents work in Government Solutions. The company believes that the recent contract wins will ultimately help in margin expansion and considerably de-risking business.
Notably, shares of KBR have outperformed its Zacks Investment Research
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