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DML SIGNS PARTNERING AGREEMENT

DML SIGNS PARTNERING AGREEMENT TO PROVIDE WARSHIP SUPPORT AT DEVONPORT NAVAL BASE

25 Jun 02. Devonport Management Limited (DML) has entered into a partnering agreement with the Ministry of Defence (MoD) to provide warship support services at the Devonport Naval Base as part of the Warship Support Modernisation Initiative.

Kellogg Brown & Root (KBR) is the majority shareholder in the company that owns and operates Devonport Royal Dockyard, the UK’s major warship and submarine support site. KBR (formerly known as Brown & Root) is the engineering and construction subsidiary of Halliburton Company (NYSE: HAL).

Tony Pryor, Europe & Africa region COO for KBR’s Government Operations business, and Chairman of DML said: ‘Strategically this is an important opportunity for DML and forms part of our wider role in naval support. We have a long history of working closely with the Naval Base at Devonport. This agreement will enable us to become fully involved in the provision of engineering support to ships and submarines based at Devonport.’

Under the £300m, five-year contract, approximately 400 Civil Servants currently employed by the MoD at the Devonport Naval Base will transfer to DML in September, in accordance with TUPE regulations, and become DML employees. Subject to satisfactory performance the contract may be extended for a further five years.

The contract will cover the repair and maintenance of the operational fleet, the provision of waterfront support services, the maintenance of the Naval Base estate, and the management of Naval Base distribution and transport services.
KBR Government Operations operates throughout the world with major offices in the US, the UK and Australia, specializing in comprehensive facilities engineering, design, development, construction management, operations, maintenance and logistics support for government clients worldwide.
KBR is an international, technology-based engineering and construction company, which provides a full spectrum of industry-leading services for governments and public infrastructure and to the hydrocarbon, chemical, energy, and forest products industries.

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