KBR, Inc. (formerly Kellogg Brown & Root) is a U.S. based company operating in fields of science, technology and engineering. KBR works in various markets including aerospace, defense, industrial and intelligence. After Halliburton acquired Dresser Industries, KBR was created in 1998 when M.W. Kellogg merged with Halliburton's construction subsidiary, Brown & Root, to form Kellogg Brown & Root. In 2006, the company separated from Halliburton and completed an initial public offering on the New York Stock Exchange. The company's corporate offices are in the

KBR Tower KBR Tower (formerly the M. W. Kellogg Tower) is a 550 ft (167.6 m) tall skyscraper in Downtown Houston, Texas, United States; it is a part of the Cullen Center complex. The KBR Tower has the headquarters of KBR, Inc., an engineering, procure ...

in Downtown Houston.Eriksen, Helen
"Will KBR ditch its Houston headquarters for Katy suburbia?"
''

Houston Chronicle The ''Houston Chronicle'' is the largest daily newspaper in Houston, Texas, United States. , it is the third-largest newspaper by Sunday circulation in the United States, behind only ''The New York Times'' and the ''Los Angeles Times''. With it ...

''. April 30, 2008. Retrieved on January 13, 2009.

History

M. W. Kellogg

In 1901, Morris Woodruff Kellogg founded The M. W. Kellogg Company in New York City. The company was incorporated in 1905 and its headquarters was moved to

Jersey City, New Jersey Jersey City is the second-most populous city in the U.S. state of New Jersey, after Newark.forge welding techniques helped ready the company to move into refining as the petroleum industry developed. Kellogg was announced the number one construction company for years 1993 to 1995. This is mainly due to their work in the Dulles Greenway. Kellogg's entry into process engineering initially focused on the Fleming cracking process, but in the 1920s Kellogg partnered with The Texas Company (

Texaco Texaco, Inc. ("The Texas Company") is an American Petroleum, oil brand owned and operated by Chevron Corporation. Its flagship product is its Gasoline, fuel "Texaco with Techron". It also owned the Havoline motor oil brand. Texaco was an Indepe ...

) and

Standard Oil of Indiana Amoco () is a brand of filling station, fuel stations operating in the United States, and owned by BP since 1998. The Amoco Corporation was an American chemical and petroleum, oil company, founded by Standard Oil Company in 1889 around a oil re ...

to purchase the Cross thermal cracking process. Kellogg set up one of the first petroleum laboratories in the country in 1926 to commercialize and then license the technology. This led to Kellogg building some 130 units in the United States and abroad. In the 1930s and 1940s, Kellogg worked with leading refiners on various technologies. For the war effort, these developments led to the construction of six hydroreformer units, twenty

fluid catalytic cracking Fluid Catalytic Cracking (FCC) is the conversion process used in petroleum refineries to convert the high-boiling point, high-molecular weight hydrocarbon fractions of petroleum (crude oils) into gasoline, olefinic gases, and other petroleum prod ...

units, and the only complete refinery built during World War II. Even bigger than the refining work was

K-25 K-25 was the codename given by the Manhattan Project to the program to produce enriched uranium for atomic bombs using the gaseous diffusion method. Originally the codename for the product, over time it came to refer to the project, the prod ...

, the

gaseous diffusion Gaseous diffusion is a technology used to produce enriched uranium by forcing gaseous uranium hexafluoride (UF6) through semipermeable membranes. This produces a slight separation between the molecules containing uranium-235 (235U) and uranium-2 ...

plant at

Oak Ridge, Tennessee Oak Ridge is a city in Anderson and Roane counties in the eastern part of the U.S. state of Tennessee, about west of downtown Knoxville. Oak Ridge's population was 31,402 at the 2020 census. It is part of the Knoxville Metropolitan Area. Oak ...

, developed by Kellogg subsidiary the

Kellex Corporation The Kellex Corporation was a wholly owned subsidiary of M. W. Kellogg Company. Kellex was formed in 1942 so that Kellogg's operations relating to the Manhattan Project could be kept separate and secret. "Kell" stood for "Kellogg" and "X" for se ...

, built as part of the

Manhattan Project The Manhattan Project was a research and development undertaking during World War II that produced the first nuclear weapons. It was led by the United States with the support of the United Kingdom and Canada. From 1942 to 1946, the project w ...

. This period also included the development of the Benedict–Webb–Rubin (BWR) equation of state which has since become an industry mainstay and provided the basis for Kellogg's lead in

cryogenics In physics, cryogenics is the production and behaviour of materials at very low temperatures. The 13th IIR International Congress of Refrigeration (held in Washington DC in 1971) endorsed a universal definition of “cryogenics” and “cr ...

. The 1950s Kellogg technology expanded into steam

pyrolysis The pyrolysis (or devolatilization) process is the thermal decomposition of materials at elevated temperatures, often in an inert atmosphere. It involves a change of chemical composition. The word is coined from the Greek-derived elements ''py ...

, Orthoflow

phenol Phenol (also called carbolic acid) is an aromatic organic compound with the molecular formula . It is a white crystalline solid that is volatile. The molecule consists of a phenyl group () bonded to a hydroxy group (). Mildly acidic, it req ...

-from- cumene and

coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed when dea ...

-to-synthetic fuels technologies and the 1960s saw the growth in

helium Helium (from el, ἥλιος, helios, lit=sun) is a chemical element with the symbol He and atomic number 2. It is a colorless, odorless, tasteless, non-toxic, inert, monatomic gas and the first in the noble gas group in the periodic table. ...

recovery,

ethylene Ethylene (IUPAC name: ethene) is a hydrocarbon which has the formula or . It is a colourless, flammable gas with a faint "sweet and musky" odour when pure. It is the simplest alkene (a hydrocarbon with carbon-carbon double bonds). Ethylene i ...

, and the development of Kellogg's

ammonia Ammonia is an inorganic compound of nitrogen and hydrogen with the formula . A stable binary hydride, and the simplest pnictogen hydride, ammonia is a colourless gas with a distinct pungent smell. Biologically, it is a common nitrogenous was ...

process. Kellogg maintained New York offices at 225 Broadway in the Transportation Building until 1956 when it moved to 711 Third Avenue in Midtown. In 1970, Kellogg moved from New York City to

Houston, Texas Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...

, and in 1975, they completed the move by relocating the research and development lab. The 1970s saw Kellogg become the first American contractor to receive contracts from China. Kellogg's international work expanded with the major ammonia complexes in China, Indonesia, and Mexico as well as

LNG Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...

liquefaction plant in

Algeria ) , image_map = Algeria (centered orthographic projection).svg , map_caption = , image_map2 = , capital = Algiers , coordinates = , largest_city = capital , relig ...

and two receiving terminals in the United States, the world's largest LPG plant in Kuwait and four

units in Mexico. The 1980s saw continuation of global activity in LNG and

with

millisecond furnace A Millisecond Furnace is a device used for cracking naphtha into ethylene, by extremely short (50 to 100 millisecond) exposure to temperatures of about 900 degrees Celsius, followed by a rapid quenching below 750 degrees Celsius. It was developed ...

s starting up in the United States. Kellogg underwent numerous acquisitions and name changes through until 1987, when it was acquired by Dresser Industries, a provider of integrated services and project management for the oil and gas industry. Ten years later, Halliburton acquired Dresser, and combined Kellogg with Brown & Root to create a new, larger subsidiary – Kellogg Brown & Root (KBR).

Brown & Root

Brown & Root was founded in

Texas Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...

in 1919 by Herman Brown and Daniel Root, with money provided by Root (Brown's brother in law). Root soon died and Herman Brown's younger brother,

George R. Brown George Rufus Brown (May 12, 1898 – January 22, 1983) was a prominent Houston entrepreneur. With his brother Herman, Brown led Brown & Root Inc. to become one of the largest construction companies in the world and helped to foster the political c ...

, joined the company in 1922 (according to Robert A. Caro's '' The Path to Power''). The company began its operations by building roads in Texas. One of its first large-scale projects, according to the book ''

Cadillac Desert ''Cadillac Desert'' (1986), is a history by American Marc Reisner about land development and water policy in the western United States. Subtitled ''The American West and Its Disappearing Water'', it explores the history of the federal agencies, ...

'', was building a dam on the

Colorado River The Colorado River ( es, Río Colorado) is one of the principal rivers (along with the Rio Grande) in the Southwestern United States and northern Mexico. The river drains an expansive, arid drainage basin, watershed that encompasses parts of ...

near

Austin Austin is the capital city of the U.S. state of Texas, as well as the seat and largest city of Travis County, with portions extending into Hays and Williamson counties. Incorporated on December 27, 1839, it is the 11th-most-populous city ...

during the Depression years. For assistance in federal payments, the company turned to the local

Congressman A Member of Congress (MOC) is a person who has been appointed or elected and inducted into an official body called a congress, typically to represent a particular constituency in a legislature. The term member of parliament (MP) is an equivalen ...

Lyndon Johnson Lyndon Baines Johnson (; August 27, 1908January 22, 1973), often referred to by his initials LBJ, was an American politician who served as the 36th president of the United States from 1963 to 1969. He had previously served as the 37th vice ...

. Brown & Root was the principal source of campaign funds after Johnson's initial run for Congress in 1937, in return for persuading the Bureau of Reclamation to change its rules against paying for a dam on land the federal government did not own, a decision that had to go all the way to President

Franklin Delano Roosevelt Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...

. After other very profitable construction projects for the federal government, Brown & Root gave massive sums of cash for Johnson's first run for the U.S. Senate in 1941. During

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...

, Brown & Root built the Naval Air Station Corpus Christi and its subsidiary

Brown Shipbuilding The Brown Shipbuilding Company was founded in Houston, Texas, in 1942 as a subsidiary of Brown and Root (now KBR) by brothers Herman and George R. Brown to build ships for the U.S. Navy during World War II. Brown Shipbuilding Company ranked 68th ...

produced a series of warships for the

U.S. government The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a fede ...

. In 1947 Brown & Root built one of the world's first offshore

oil platform An oil platform (or oil rig, offshore platform, oil production platform, and similar terms) is a large structure with facilities to extract and process petroleum and natural gas that lie in rock formations beneath the seabed. Many oil platfor ...

s. According to Tracy Kidder's book '' Mountains Beyond Mountains'', Brown & Root was a contractor in the Péligre Dam project. The project was designed by the

U.S. Army Corps of Engineers , colors = , anniversaries = 16 June (Organization Day) , battles = , battles_label = Wars , website = , commander1 = ...

and financed by the Export-Import Bank of the United States.

Halliburton years

Following the death of Herman Brown, Halliburton Energy Services acquired Brown & Root in December 1962. According to

Dan Briody Dan Briody is the author of the books ''The Halliburton Agenda: The Politics of Oil and Money'' (2004) and ''The Iron Triangle: Inside the Secret World of the Carlyle Group'' (2003). Born in Ridgefield, Connecticut, he and his family now live in ...

, who wrote a book on the subject, the company became part of a consortium called RMK-BRJ that built about 85 percent of the

infrastructure Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...

needed by the

U.S. Armed Forces The United States Armed Forces are the military forces of the United States. The armed forces consists of six service branches: the Army, Marine Corps, Navy, Air Force, Space Force, and Coast Guard. The president of the United States is the ...

during the Vietnam War. In 1967, the

Government Accounting Office The U.S. Government Accountability Office (GAO) is a legislative branch government agency that provides auditing, evaluative, and investigative services for the United States Congress. It is the supreme audit institution of the federal govern ...

alleged that Brown & Root had been unaccountable with public funds and allowed materials to be stolen.

Donald Rumsfeld Donald Henry Rumsfeld (July 9, 1932 – June 29, 2021) was an American politician, government official and businessman who served as Secretary of Defense from 1975 to 1977 under president Gerald Ford, and again from 2001 to 2006 under Presi ...

expressed concern that their contracts were not adequately audited. At this time,

protesters A protest (also called a demonstration, remonstration or remonstrance) is a public expression of objection, disapproval or dissent towards an idea or action, typically a political one. Protests can be thought of as acts of coopera ...

derided Brown & Root as a symbol of

war profiteering A war profiteer is any person or organization that derives profit (economics), profit from warfare or by selling weapons and other goods to parties at war. The term typically carries strong negative connotations. General profiteering (business), ...

, dubbing the company "Burn & Loot". In 1989, Halliburton acquired another major engineering and construction contractor, C. F. Braun Inc., of Alhambra California, and merged it into Brown & Root. From 1995 to 2002, Halliburton KBR was awarded at least $2.5 billion to construct and run military bases, some in secret locations, as part of the U.S. Army's Logistics Civil Augmentation Program (

LOGCAP The Logistics Civil Augmentation Program (LOGCAP) is a program administered by the US Army to provide contingency support to augment the Army force structure. The first three contracts (and all task orders under them) were awarded to a singl ...

). In September 2005, under a competitive bid contract it won in July 2005 to provide debris removal and other emergency work associated with natural disasters, KBR started assessment of the cleanup and reconstruction of Gulf Coast

Marine Marine is an adjective meaning of or pertaining to the sea or ocean. Marine or marines may refer to: Ocean * Maritime (disambiguation) * Marine art * Marine biology * Marine debris * Marine habitats * Marine life * Marine pollution Military * ...

and

Navy A navy, naval force, or maritime force is the branch of a nation's armed forces principally designated for naval warfare, naval and amphibious warfare; namely, lake-borne, riverine, littoral zone, littoral, or ocean-borne combat operations and ...

facilities damaged in the aftermath of

Hurricane Katrina Hurricane Katrina was a destructive Category 5 Atlantic hurricane that caused over 1,800 fatalities and $125 billion in damage in late August 2005, especially in the city of New Orleans and the surrounding areas. It was at the time the cost ...

. The facilities include:

Naval Station Pascagoula Naval Station Pascagoula (NAVSTA Pascagoula) was a base of the United States Navy, in Pascagoula, Mississippi, Pascagoula, Mississippi. The base officially closed 15 November 2006. The base's property, on Singing River Island in the Mississippi S ...

, Naval Station Gulfport, the

John C. Stennis Space Center The John C. Stennis Space Center (SSC) is a NASA rocket testing facility in Hancock County, Mississippi, United States, on the banks of the Pearl River at the Mississippi–Louisiana border. , it is NASA's largest rocket engine test facility. ...

Mississippi Mississippi () is a state in the Southeastern region of the United States, bordered to the north by Tennessee; to the east by Alabama; to the south by the Gulf of Mexico; to the southwest by Louisiana; and to the northwest by Arkansas. Miss ...

, two smaller U.S. Navy facilities in

New Orleans, Louisiana New Orleans ( , ,New Orleans
Merriam-Webster. ; french: La Nouvelle-Orléans , es, Nuev ...

, and others in the Gulf Coast region.

Formation of KBR, Inc.

Halliburton announced on April 5, 2007, that it had separated from KBR, which had been its contracting, engineering, and construction unit as a part of the company for 44 years. The move was prefaced by a statement registered with the

United States Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

on April 15, 2006, stating that Halliburton planned to sell up to 20 percent of its KBR stock on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...

(NYSE). On November 16, 2006, KBR shares were offered for the public in an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

with shares priced at $17. The shares closed up more than 22 percent to $20.75 a share on the first trading day. On May 7, 2008, the company announced that it would acquire

Birmingham, Alabama Birmingham ( ) is a city in the north central region of the U.S. state of Alabama. Birmingham is the seat of Jefferson County, Alabama's most populous county. As of the 2021 census estimates, Birmingham had a population of 197,575, down 1% fr ...

-based engineering and construction firm BE&K for $550 million. The company announced on November 7, 2017, that KBR secured a contract to provide astronaut medical support services for the European Space Agency's European Astronaut Center Space Medicine Office in

Cologne Cologne ( ; german: Köln ; ksh, Kölle ) is the largest city of the German western States of Germany, state of North Rhine-Westphalia (NRW) and the List of cities in Germany by population, fourth-most populous city of Germany with 1.1 m ...

, Germany. In May 2019, the company introduced new branding.

Operations

The company is heavily involved in mission support for several government agencies, including

NASA The National Aeronautics and Space Administration (NASA ) is an independent agency of the US federal government responsible for the civil space program, aeronautics research, and space research. NASA was established in 1958, succeeding t ...

, providing training and care for American astronauts.

GICS Code Reclassification

In April 2019, KBR's GICS code was reclassified as an IT consulting company by stock traders. MSCI, a New York private equity firm that manages how companies are classified on various stock exchanges, reclassified KBR as a company specializing in "IT Consulting & Other Services." KBR has made shift away from engineering and construction projects to government contracts that include information technology and other support services. KBR's government services sector accounted for more than 70 percent of the company's $4.9 billion revenue in 2018.

Expansion

In February 2018, KBR announced that it would acquire Stinger Ghaffarian Technologies, a provider of technological solutions as well as mission operations in the aerospace sector, for $355 million. The acquisition was completed April 25, 2018. In October 2020, KBR announced it had completed the acquisition of Centauri, LLC, a leading independent provider of space, directed energy, and other advanced technology solutions to the United States intelligence community and Department of Defense, from Arlington Capital Partners.

Office facilities

In 2008, the firm announced that a new office facility would appear at the intersection of the

Grand Parkway State Highway 99 (SH 99), also known as the Grand Parkway, is a ring road in the U.S. state of Texas. Its first section opened on August 31, 1994. When the route is completed, it will be the longest beltway in the U.S., the world's seventh-long ...

and

Interstate 10 Interstate 10 (I-10) is the southernmost cross-country highway in the American Interstate Highway System. I-10 is the fourth-longest Interstate in the United States at , following I-90, I-80, and I-40. This freeway is part of the originally pl ...

in unincorporated western

Harris County, Texas Harris County is a county located in the U.S. state of Texas; as of the 2020 census, the population was 4,731,145, making it the most populous county in Texas and the third most populous county in the United States. Its county seat is Houston, ...

, between Houston and Katy. The new complex would have been in close proximity to the Energy Corridor area of Houston. KBR planned to continue to have a corporate presence in Downtown Houston. In December KBR said that it would not continue with the plans due to a weakened economy. In January 2010 KBR announced plans to extend its lease and expand its presence in Downtown Houston. The downtown expansion replaced the Harris County plans. The new total of KBR leased space in downtown will be just over at completion.

Kosovo

In 1996, Brown & Root was awarded a contract to support U.S. and North Atlantic Treaty Organization (NATO) troops as part of the SFOR operation in the

Balkan The Balkans ( ), also known as the Balkan Peninsula, is a geographical area in southeastern Europe with various geographical and historical definitions. The region takes its name from the Balkan Mountains that stretch throughout the who ...

region. This contract was extended to also include

KFOR KFOR may refer to: * KFOR (AM), a radio station (1240 AM) licensed to Lincoln, Nebraska, United States * KFOR-TV, a television station (channel 4 analog/27 digital) licensed to Oklahoma City, Oklahoma, United States * KFOR-TV (Nebraska), a defunct ...

operations in

Kosovo Kosovo ( sq, Kosova or ; sr-Cyrl, Косово ), officially the Republic of Kosovo ( sq, Republika e Kosovës, links=no; sr, Република Косово, Republika Kosovo, links=no), is a partially recognised state in Southeast Euro ...

starting in 1999. Camp Bondsteel in Ferizaj,

, was constructed by the 94th Engineer Construction Battalion together with the private Kellogg Brown & Root (KBR) under the direction of the Army Corps of Engineers.

Afghanistan

KBR was awarded a $100 million contract in 2002 to build a new U.S. embassy in

Kabul Kabul (; ps, , ; , ) is the capital and largest city of Afghanistan. Located in the eastern half of the country, it is also a municipality, forming part of the Kabul Province; it is administratively divided into 22 municipal districts. Acco ...

Afghanistan Afghanistan, officially the Islamic Emirate of Afghanistan,; prs, امارت اسلامی افغانستان is a landlocked country located at the crossroads of Central Asia and South Asia. Referred to as the Heart of Asia, it is bordere ...

, from the U.S. State Department. KBR has also been awarded 15 Logistics Civil Augmentation Program (

) task orders worth more than $216 million for work under

Operation Enduring Freedom Operation Enduring Freedom (OEF) was the official name used synonymously by the U.S. government for both the War in Afghanistan (2001–2014) and the larger-scale Global War on Terrorism. On 7 October 2001, in response to the September 11 at ...

, the military name for operations in

. These include establishing base camps at

Kandahar Kandahar (; Kandahār, , Qandahār) is a List of cities in Afghanistan, city in Afghanistan, located in the south of the country on the Arghandab River, at an elevation of . It is Afghanistan's second largest city after Kabul, with a population ...

and Bagram Air Base and training foreign troops from the

Republic of Georgia A republic () is a "state in which power rests with the people or their representatives; specifically a state without a monarchy" and also a "government, or system of government, of such a state." Previously, especially in the 17th and 18th c ...

Cuba

KBR has also been actively involved in the development of works in Cuba. Most notably sections of the U.S. Naval base in Guantanamo, completed in 2006. Camp 6, the newest facility built for detainees at Naval Station Guantanamo Bay, is designed after a maximum-security penitentiary in the U.S.

Iraq

In the 2000s, KBR employed more American private contractors and had a larger contract with the

than any other firm in

Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...

. The company's roughly 14,000 U.S. employees in Iraq provide

logistical support Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of ...

to the

U.S. military The United States Armed Forces are the military forces of the United States. The armed forces consists of six service branches: the Army, Marine Corps, Navy, Air Force, Space Force, and Coast Guard. The president of the United States is the ...

. Some

U.S. Marines The United States Marine Corps (USMC), also referred to as the United States Marines, is the Marines, maritime land force military branch, service branch of the United States Armed Forces responsible for conducting expeditionary warfare, exped ...

revived the Vietnam-era nickname 'Burn & Loot' as a name for the company during the

Iraq War {{Infobox military conflict , conflict = Iraq War {{Nobold, {{lang, ar, حرب العراق (Arabic) {{Nobold, {{lang, ku, شەڕی عێراق (Kurdish languages, Kurdish) , partof = the Iraq conflict (2003–present), I ...

. In November 2012, a dozen

Oregon National Guard The Oregon Military Department is an agency of the government of the U.S. state of Oregon, which oversees the armed forces of the state of Oregon. Under the authority and direction of the governor as commander-in-chief, the agency is responsib ...

soldiers sued KBR for knowingly exposing them to hexavalent chromium, and were awarded more than $85 million; the soldiers were providing security to civilian workers at the Qarmat Ali water facility in 2003. In January 2019, a case brought against KBR by hundreds of veterans, who claimed the company's practice of burning trash near barracks had sickened them, was refused by the supreme court, which let stand a lower court's ruling against the veterans.

Space and work with NASA

In 2021, NASA awarded KBR and Aerodyne Industries a $531 million contract for systems engineering at NASA’s Goddard Space Flight center in Maryland. KBR also houses the low pressure chamber designed to test the high altitude flying of the new X-59 research aircraft being designed by NASA. Scientists and engineers working for KBR also contributed to the development and deployment of the

James Webb Space Telescope The James Webb Space Telescope (JWST) is a space telescope which conducts infrared astronomy. As the largest optical telescope in space, its high resolution and sensitivity allow it to view objects too old, distant, or faint for the Hubble Spa ...

, which launched in 2022, as part of various Mechanical Integration Services and Technology contracts.

Lobbying

KBR engages third party lobbyists to represent the company in jurisdiction where they have business interests. For example, in South Australia, KBR is represented by lobbying firm MCM Strategic Communications.

Controversy

Questionable charges

In June 2008, Charles M. Smith, the senior civilian Defense Department official overseeing the government's multibillion-dollar contract with KBR during the early stages of the war in Iraq said he was forced out of his job in 2004 for refusing to approve $1 billion in questionable charges by KBR. Smith refused to approve the payments because Army auditors determined that KBR lacked credible records to support more than $1 billion in spending. Smith stated, "They had a gigantic amount of costs they couldn't justify." He said that following this action he was suddenly dismissed and according to one ''New York Times'' source "his successors — after taking the unusual step of hiring an outside contractor to consider KBR's claims — approved most of the payments he had tried to block."

Shell companies in Cayman Islands

In March 2008, ''

The Boston Globe ''The Boston Globe'' is an American daily newspaper founded and based in Boston, Massachusetts. The newspaper has won a total of 27 Pulitzer Prizes, and has a total circulation of close to 300,000 print and digital subscribers. ''The Boston Glob ...

'' reported that KBR had avoided paying hundreds of millions of dollars in federal Medicare and

Social Security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...

taxes by hiring workers through

shell companies A shell corporation is a company or corporation that exists only on paper and has no office and no employees, but may have a bank account or may hold passive investments or be the registered owner of assets, such as intellectual property, or s ...

based in the tax haven of the

Cayman Islands The Cayman Islands () is a self-governing British Overseas Territory—the largest by population in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman, which are located to the ...

. More than 21,000 people working for KBR in Iraq – including about 10,500 Americans – are listed as employees of two companies, Service Employees International Inc., and Overseas Administrative Services, which exist on the island only in

computer files A computer file is a computer resource for recording data in a computer storage device, primarily identified by its file name. Just as words can be written to paper, so can data be written to a computer file. Files can be shared with and transf ...

in an office. KBR admitted that the companies were set up "in order to allow us to reduce certain tax obligations of the company and its employees". But KBR does claim the workers as its own with regards to the legal immunity extended to employers working in

Bribing Nigerian officials

On February 6, 2009, the Justice Department announced KBR had been charged with paying "tens of millions of dollars" in bribes to

Nigeria Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf o ...

n officials in order to win government contracts, in violation of the

Foreign Corrupt Practices Act The Foreign Corrupt Practices Act of 1977 (FCPA) (, ''et seq.'') is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests. The FCPA is applicable world ...

(FCPA). A 22-page document filed in a Houston federal court alleged massive bribes in connection with the construction of a natural gas plant on Bonny Island requiring $7.5bn USD. KBR officials had no comment. KBR pleaded guilty and was ordered to pay $402m USD in criminal fines, nearly all of which was covered by Halliburton. KBR and Halliburton also paid $177m USD in disgorgement of profits to the

Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

(SEC) due a civil complaint filed by the SEC relating to the FCPA charges. Former CEO Albert Jackson Stanley, who ran KBR when it was a subsidiary to Halliburton, was sentenced to 30 months in prison via plea agreement.

Waxman allegations

The Army's actions came under fire from

California California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...

Congressman Henry Waxman, who, along with

Michigan Michigan () is a state in the Great Lakes region of the upper Midwestern United States. With a population of nearly 10.12 million and an area of nearly , Michigan is the 10th-largest state by population, the 11th-largest by area, and the ...

Congressman John Dingell, asked the

General Accounting Office The U.S. Government Accountability Office (GAO) is a legislative branch government agency that provides auditing, evaluative, and investigative services for the United States Congress. It is the supreme audit institution of the federal govern ...

to investigate whether the

U.S. Agency for International Development The United States Agency for International Development (USAID) is an independent agency of the U.S. federal government that is primarily responsible for administering civilian foreign aid and development assistance. With a budget of over $27 bil ...

and

The Pentagon The Pentagon is the headquarters building of the United States Department of Defense. It was constructed on an accelerated schedule during World War II. As a symbol of the U.S. military, the phrase ''The Pentagon'' is often used as a metony ...

were circumventing government contracting procedures and favoring companies with ties to the Bush administration. They also accused KBR of inflating prices for importing gasoline into Iraq. In June 2003, the Army announced that it would replace KBR's oil-

contract with two public-bid contracts worth a maximum total of $1 billion, to be awarded in October. However, the Army announced in October it would expand the contract ceiling to $2 billion and the solicitation period to December. As of October 16, 2003, KBR had performed nearly $1.6 billion worth of work. In the meantime, KBR has subcontracted with two companies to work on the project:

Boots & Coots Boots & Coots was a well control company. It was founded in 1978 by Asger "Boots" Hansen and Ed "Coots" Matthews, veterans of the Red Adair Service and Marine Company. The two companies extinguished approximately one third of the more than 700 oil ...

, an oil field emergency response firm that Halliburton works in partnership with (CEO Jerry L. Winchester was a former Halliburton manager) and

Wild Well Control Wild Well Control is a well control company based in Houston, Texas that has worked to mitigate several high-profile well control issues including the Kuwaiti oil fires and the Deepwater Horizon oil spill. According to its website it has respond ...

. Both firms are based in Texas.

Professional negligence

KBR's maintenance work in Iraq has been criticized after reports of soldiers electrocuted from faulty wiring. Specifically, KBR has been charged by the Army for improper installation of electrical units in bathrooms throughout U.S. bases. CNN reported that an Army Special Forces soldier, Staff Sergeant Ryan Maseth, died by electrocution in his shower stall on January 2, 2008. Army documents showed that KBR inspected the building and found serious electrical problems a full 11 months before his death. KBR noted "several safety issues concerning the improper grounding of electrical devices". But KBR's contract did not cover "fixing potential hazards;" It covered repairing items only after they broke down. Maseth's family has sued KBR. In January 2009, the U.S. Army Criminal Investigation Command investigator assigned to the case recommended that Maseth's official cause of death should be changed from "accidental" to "negligent homicide". KBR supervisors were blamed for failing to ensure electrical and plumbing work were performed by qualified employees, and for failure to inspect the work. In late January 2009, the Defense Contract Management Agency handed down a "Level III Corrective Action Request" to KBR. This is disseminated after a contractor is found being in a state of "serious noncompliance", and is one step from suspending or terminating a contract. In 2011, KBR defended the lawsuit by claiming that Iraqi, not American, law should apply in determining a verdict. Despite these issues, KBR was awarded a $35 million contract for major electrical work in 2009.

Employee safety in warzones

As of June 9, 2008, 81 American and foreign KBR employees and subcontractors have been killed, and more than 380 have been wounded by hostile action while performing services under the company's government contracts in

and

Kuwait Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the nort ...

. Family members of injured or killed employees have sued the company in relation to the 2004 Iraq KBR convoy ambush.

Sexual assault and abuse allegations

Jamie Leigh Jones Jamie Leigh Jones (born 1985) is a former employee of KBR, an American engineering, construction and private military contracting company. During her employment, KBR was a subsidiary of Halliburton from 1962 to 2007. She is notable for accusing t ...

testified at a Congressional hearing that she had been gang-raped by as many as seven coworkers in Iraq in 2005 when she was an employee of KBR (a subsidiary of Halliburton at the time), and then falsely imprisoned in a shipping container for 24 hours without food or drink. Under questioning, Jones denied ever having claimed to have been gang-raped, even though her extensive media appearances say otherwise. Jones and her lawyers said that 38 women have contacted her reporting similar experiences while working as contractors in Iraq, Kuwait, and other countries. On September 15, 2009, the

5th Circuit Court of Appeals The United States Court of Appeals for the Fifth Circuit (in case citations, 5th Cir.) is a federal court with appellate jurisdiction over the district courts in the following federal judicial districts: * Eastern District of Louisiana * Mi ...

ruled in favor of Jones, in a 2–1 ruling, and found that her alleged injuries were not, in fact, in any way related to her employment and thus, not covered by the contract. On July 8, 2011, a jury in the Southern District of Texas federal court in Houston found against Jones and cleared KBR of any wrongdoing. Jamie Leigh Jones's case led Senator Al Franken to propose an amendment to the defense appropriations bill, which was passed in October 2009, to allow employees of firms with government contracts access to the courts. Jones's case received an unfavorable verdict and her alleged fabrication caused a subsequent media scandal. Mary Beth Kineston, an Ohio truck driver, alleged she was

sexually harassed Sexual harassment is a type of harassment involving the use of explicit or implicit sexual overtones, including the unwelcome and inappropriate promises of rewards in exchange for sexual favors. Sexual harassment includes a range of actions fro ...

and groped by several KBR employees, and was later fired after reporting to the company the threats and harassment endured by female employees. Jo Frederiksen, another female employee, filed a lawsuit against the company for allegedly being "inappropriately touched, stalked, intimidated and verbally harassed" during her time with the firm in 2003. According to Frederiksen, after she complained to the firm she was moved to an even more hostile location while some of her abusers were promoted. The lawsuit claimed "women are second-rate citizens provided for the pleasure of men" at the firm. Frederiksen also alleged a lack of oversight to "rampant illicit criminal behavior" related to prostitution and human trafficking by other KBR employees.

Human trafficking lawsuit

On August 28, 2008, defense contractor KBR, Inc. and a Jordanian subcontractor were accused of human trafficking in a federal lawsuit filed in Los Angeles. The suit alleged that 13 Nepali men were recruited by Daoud & Partners to work in hotels and restaurants in Jordan, but upon arrival all 13 men had their passports seized by the contractor and were sent to Iraq to work on the

Al Asad Airbase Ayn al Asad is an Iraqi Armed Forces base located in Al Anbar Governorate (also called Anbar province) of western Iraq. It was originally known as Qadisiyah Airbase. It was the second largest US military airbase in Iraq during Operation Iraqi ...

. Twelve of the employees were abducted when their unprotected convoy was attacked by a group calling itself the Army of Ansar al-Sunna, while en route to the base. Shortly thereafter, a video was released of one of the men being beheaded and the other 11 shot. The remaining employee, Buddi Prasad Gurung, claims to have been held against his will for 15 months, during which time he was forced to work at the base. Reuters quoted attorney Matthew Handley as saying, "It doesn't appear that any of them knew they were going to Iraq." KBR made no public comment on the lawsuit, but released a statement which stated in part that it, "in no way condones or tolerates unethical or illegal behavior".

"Burn pits" lawsuits

More than 20 federal lawsuits naming KBR and seeking class-action status were filed in late 2008 and 2009 over the practice of operating "

burn pit A burn pit is an area of a United States military base in which waste is disposed of by burning. According to the United States Army field manual, there are four other ways outside of burn pits to dispose of nonhazardous solid waste: incinerators ...

s" at U.S. bases in both Iraq and Afghanistan and thus exposing soldiers to smoke containing

dioxin Dioxin may refer to: * 1,2-Dioxin or 1,4-Dioxin, two unsaturated heterocyclic 6-membered rings where two carbon atoms have been replaced by oxygen atoms, giving the molecular formula C4H4O2 *Dibenzo-1,4-dioxin, the parent compound also known as ...

asbestos Asbestos () is a naturally occurring fibrous silicate mineral. There are six types, all of which are composed of long and thin fibrous crystals, each fibre being composed of many microscopic "fibrils" that can be released into the atmosphere b ...

, and other harmful substances. The pits are said to include "every type of waste imaginable", with items such as "tires, lithium batteries, Styrofoam, paper, wood, rubber, petroleum-oil-lubricating products, metals,

hydraulic fluid A hydraulic fluid or hydraulic liquid is the medium by which power is transferred in hydraulic machinery. Common hydraulic fluids are based on mineral oil or water. Examples of equipment that might use hydraulic fluids are excavators and backhoe ...

s, munitions boxes,

medical waste Biomedical waste or hospital waste is any kind of waste containing infectious (or potentially infectious) materials. It may also include waste associated with the generation of biomedical waste that visually appears to be of medical or laboratory ...

biohazard A biological hazard, or biohazard, is a biological substance that poses a threat to the health of living organisms, primarily humans. This could include a sample of a microorganism, virus or toxin that can adversely affect human health. A bioh ...

materials (including human corpses), medical supplies (including those used during smallpox inoculations), paints, solvents, asbestos insulation, items containing

pesticide Pesticides are substances that are meant to control pests. This includes herbicide, insecticide, nematicide, molluscicide, piscicide, avicide, rodenticide, bactericide, insect repellent, animal repellent, microbicide, fungicide, and lampri ...

s, polyvinyl chloride pipes, animal carcasses, dangerous chemicals, and hundreds of thousands of plastic water bottles". A company statement responding to the allegations said that "at the sites where KBR provides burn pit services, the company does so ... in accordance with the relevant provisions" of its contracts as well as "operational guidelines approved by the Army".

Late payment

In the UK in April 2019, Kellogg Brown & Root was suspended from the UK Government's Prompt Payment Code for failing to pay suppliers on time.

Workers stranded in Indian Ocean territory

On September 16, 2022, the

Department of Migrant Workers The Department of Migrant Workers ( fil, Kagawaran ng Manggagawang Mandarayuhan, abbreviated as DMW) is the executive department of the Philippine government responsible for the protection of the rights and promote the welfare of Overseas Filip ...

Secretary,

Susan Ople Maria Susana "Toots" Vasquez Ople (born February 9, 1962) is a Filipino politician and advocate of Overseas Filipino Workers' (OFW) rights who is the first Secretary of the Department of Migrant Workers. Biography Susan Ople was born on Februar ...

, confirmed a ''

Washington Post ''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...

'' report that 800 Filipino workers are stranded at a remote US military base on Diego Garcia in the Indian Ocean due to an employment dispute with their employer which is KBR.

References

External links

*
CalPERS urged to divest from KBR

Kellogg Brown & Root
(Archive)

(Archive) * {{DEFAULTSORT:Kbr (Company) Companies listed on the New York Stock Exchange Construction and civil engineering companies of the United States Engineering companies of the United States Energy engineering and contractor companies Private military contractors Companies based in Houston George W. Bush administration controversies Construction and civil engineering companies established in 1998 2006 initial public offerings