KBR, Inc. KBR has won a three-year firm-fixed-price contract from the U.S. Army Installation Management Command (“IMCOM”) to offer video evidence management services to the U.S. government and DoD law enforcement organizations.
Per the contract, KBR will implement and operate a secure end-to-end service for the Mobile Federal Law Enforcement Enterprise Technology Service (“M-FLEETS”) program. It will install dash cameras, digital video recorders, ruggedized computers and mobile communications in military police vehicles. The devices will be connected to its Evidence Collection Archive & Retrieval Service (“ECARS”) cloud application. Notably, this comprehensive service will be accredited as a FedRAMP High/DoD Impact Level 5 system.
Meanwhile, KBR has partnered with Panasonic, Microsoft and other platforms to support military police officers and supervisors. Initially, it will connect 10 Army installations and 100 police vehicles, supporting approximately 500 officers. Moreover, within the course of the contract, KBR may serve more than 40 DoD installations, 1,600 vehicles, and in excess of 5,000 officers in Sioux Falls, SD.
KBR's Integrated & Innovative IT Solution Bodes Well
The company’s Government Solutions business — which contributed 68.6% to third-quarter 2019 revenues — has been serving the U.S. Air Force, Army, Navy, Marine Corps, and other federal agencies and foreign allies over the past several years.
KBR's full life cycle IT and cyber capabilities help customers understand their cyber posture, eliminate their vulnerabilities, and successfully defend their data and systems. Recently, the company inked a deal with Naval Information Warfare Center Atlantic to provide cybersecurity services for the Defense Health Agency.
Notably, its partnership with industry leaders will help it deliver the first and most secure enterprise-scale video evidence collection and archival system available to the U.S. government, and DoD law enforcement organizations.
Owing to solid performance across businesses, shares of KBR have surged 72.3% in the past year compared with the Zacks Engineering - R And D Services industry’s 17.7% rally. Notably, the company is banking on strength of the Government Solutions business to optimize its growth potential. Also, steady growth in backlog is adding to KBR’s bliss.
The segment’s strong revenue growth in the first nine months of 2019 was underpinned by on-contract growth in logistics and engineering, take-away wins, along with new work awarded under the company’s portfolio of well-positioned contracting.
Growth in KBR’s overseas logistics and mission support programs — given higher military exercise activities, increased outsourcing of sustainment activities by the military and the ramp up of new wins — is expected to benefit the company in the long run. Moreover, higher tasking for various missile defense and other military priorities in its engineering business areas — under select IDIQ contracts — will support growth. Importantly, KBR expects growth across all key markets in the United States, the U.K. and Australia, driven by continued opportunities across the lifecycle of projects.
KBR — which shares space with Gates Industrial Corporation plc GTES, Quanta Services, Inc. PWR and AECOM ACM in the same industry — currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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