KBR Ltd. (KBR) has received a five-year contract from the Australian Defense Force (ADF) to provide Capability Support Coordinator (CSC) services for Canberra Class Landing Helicopter Dock (LHD) ships. Additionally, the contract can be extended for another four years.
The LHD ships – HMAS Canberra and HMAS Adelaide – are the largest vessels ever constructed for the ADF and will be operated by the Royal Australian Navy (RAN). Each of the ships boast a transport capacity of over 1,100 troops, 100 armored vehicles and 12 rotary wing aircraft.
The scope of the CSC contract requires KBR to provide configuration management, data management, maintenance monitoring, engineering and supply support services, in order to meet the technical integrity, seaworthiness and mission vigilance of the Landing Helicopter Dock ships. KBR intends to work on this project in collaboration with Rolls-Royce Australia Services Limited.
The contract is included in KBR’s Defence and Government Services (D&GS) business, which is part of KBR's Infrastructure, Government and Power (IGP) business group. The IGP business group delivers effective solutions to industrial commercial, defense and governmental agencies across the world, providing base operations, facilities management, border security, EPC services and logistics support. Notably, the business contributed about 21% of the total revenue growth in 2013.
KBR is a global engineering, construction and services company and currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include ITT Corp. (ITT), United Technologies Corp. (UTX) and CLARCOR Inc. (CLC). All three hold a Zacks Rank #2 (Buy).
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