Thank you for joining us today at our first virtual investor event, coming to you from around the globe. We are excited to connect in this forum and look forward to sharing an inside view to our incredible government business. We will have a Q&A session with all of the speakers that you'll meet today, so I encourage you to log your questions throughout the presentation using the question feature on the platform. As outlined here, today's presentation includes forward-looking statements reflecting KBR's views about future events and their potential impact on performance. These matters involve risks and uncertainties that could impact operations and financial results and cause our actual results to differ from these statements. As is customary, I would like to start the day with a sustainability moment.
We thought it would be good to talk about one of our company's contributions to advancing scientific research around the important topic of climate change. You might be surprised to learn that every day, KBR earth scientists, software developers, and researchers support the creation of scientific artifacts documenting changes to our earth. Our people ingest huge amounts of data coming in from satellites that we fly to create hyper-scale models of land form changes over time. This work, in addition to being pretty cool and performed by some of the smartest people in our company, advances climate change research globally as the information is shared publicly open source. Just one of the many ways the work of KBR is directly tied to our sustainability platform and aligned to the UN Sustainable Development Goals. To learn more, I encourage you to read our sustainability report published on our website.
Now I'll turn it over to Stuart Bradie, KBR's President and Chief Executive Officer. Over to you, Stuart.
Thank you, Alison, and welcome. Thank you for joining us today for a focused look at KBR's transformation to a company that has quickly become a sizable and leading provider of innovative solutions in the government contracting space. An organization is truly only as good as its culture and its people, and you've heard me say that many times. Today, we have the pleasure of introducing and showcasing the leadership within KBR that makes it happen. Many of you, of course, have met myself and Mark and Alison and perhaps Byron, but let's face it, we're actually just overheads. The broader team who you'll meet today are the folks on the front line that distinguish KBR in terms of really delivering for our end customers.
Today, they're going to describe their businesses, how they make money, why KBR is different, I'm convinced that they are quite simply the best at what they do. They are an amazing team. They're all a little bit different, a little bit quirky, but they do have a common passion for their people and commitment to deliver high-impact solutions for their customers, and of course, deliver the attendant earnings and cash. Today is all about showcasing our government capabilities. It's an opportunity to further reinforce the transformation of KBR and hopefully dispel myths or perceptions or some old and long-held views. As we move through 2020, I'm pleased to report that KBR continues to be resilient, agile, and a high-performing business. Today is really about further explaining why that is and showcasing, of course, our management depth.
To allow that to happen, I'm going to keep my opening remarks quite brief. With that in mind, I'll begin with how we will finish, and that is with some key takeaways. Firstly, our GICS code tells us KBR is a Government Solutions company. I mean, this is simply a fact. To put it in perspective, our 2020 forecast earnings contribution from our government business represents close to about 85% of overall KBR, and that's up from about 11% in 2015, so quite a transformation in the last four or five years.
There are investors who are very, very attracted. We've been asking investors over the last several months about this too, they've been attracted to the strength of our government business, also to our technology business, our advisory, and our high-end engineering and maintenance business but have been really turned away in other areas of our energy business, typically due to the EPC risk that we were prepared to take. To place a greater emphasis on today's event and to ensure the focus is on the right things, which is really what you're about to hear about today, we're announcing that we are exiting the blue-collar construction and lump sum EPC areas within our energy business. This includes, and I repeat, includes lump sum EPC as it relates to LNG.
We are continuing to move upmarket in all our businesses. This marks another step, really, in our transformation. We'll give further details on the outcomes of our review of our energy business when we report earnings in July as part of the Q2 earnings release. For today, the takeaway is that EPC lump sum construction risk is actually off the table. It now completely goes away, and more weight can be placed on the remarkable business that we're going to present to you today. Number two, this is really a bit of a myth buster. Today our exposure to U.S. contingency operations is actually less than 10% of our overall business.
Historically, as you know, KBR was very well-known for contingency operations support, funded by contingency budgets, which, as we all know, can be episodic. It's likely some people still think our government business is actually dominated by this work. The facts are today, and this is really the second key takeaway, is that circa 90% of what we do in government is across space, science, engineering, training, cyber, facilities and supply chain management, and base operations. Around 85% of OCO funding in today's DOD budget and going forward is actually defined as funding for permanent bases. Again, this area is significantly de-risked from history. Number three, our funding sources are very well-balanced across operations and maintenance, research, development, test and engineering, NASA, OCO, and of course, international.
The team will talk about budgets, but please remember, we're not an OEM, but rather we're a platform-agnostic applied technology services provider, and thus, we believe very much less susceptible to budget volatility. We have the highest mix of internationally funded work in the government solution space, about 25%, which gives additional diversification, is a true differentiator, and it really does saw higher margins, which is nice. Number four, and this is very dear to my heart, and you've heard me talk about this many times, is that we have a very distinct level of strategic discipline and focus, and I think this is core to our culture. We feel that the strategic vectors of defense modernization, human health performance, and space exploitation are really aligned with customer spending priorities, which really gives us line of sight to achieving continued strong organic growth over time.
Five, our strength is actually delivering high-impact solutions via applied technology and services, really focused on real operational outcomes. We're not in the back office managing IT networks and systems. It's not about bums on seats. We view it as we're at the tip of the spear, and we're there with our end customers in mission-critical roles. The team will talk about what makes KBR different in each business line, but it really started the broad theme centers on this high-impact operational success and long-term customer intimacy, so sticky relationships underpinned by long-term contracts, which again really minimizes budget risks. Number six, our words are backed by historical consistent performance and an industry-leading organic growth. Growth not over just one year but actually over the past two years.
As I always say, the proof of the pudding's in the eating. Really what we have done, in short, is actually we've just done what we said we were going to do. Our future is also underpinned by strong backlog. We've got above non-visibility with low recompete levels in 2020 and again in 2021. We have a very attractive new business pipeline, which we'll look at later. I believe firmly that we have the best-in-class BD machine. All of that really to deliver the growth into the future. Finally, there's a reason for this remarkable growth story. The leaders of our GS business you will meet here today are really a true team. As you'll see, they all come from different backgrounds, yet they have created a singular, addictive culture of collaboration and discipline.
That's why they and the men and women in their teams have produced the best organic growth rate in the business. That's why they have delivered consistently strong margins and strong cash flow. That's why they have happy and safe customers and employees. This is really where we stand out the most. It's all about our people, our high-performance, mission-focused culture, the absolute secret sauce. Now this takes us nicely onto a short video, which will give you a good feel for the breadth of capability, the geographical reach, and the diversity of personnel that are absolutely core to KBR today. I will be back for the Q&A at the end. Thank you.
Every day, KBR carries out vital government missions around the world and above it. From designing realistic virtual training environments and advanced simulations to modernizing and sustaining some of the world's largest naval vessels. From systems engineering, integration, and test support for national defense to real-time readiness and logistical support in regions of national interest to construction and improvements on military installations. KBR keeps the critical machinery of the world moving forward. Our ground crews keep planes in the air and essential supplies on the move. Our researchers monitor the health and human performance of astronauts and special operations forces. Our flight instructors train some of the top pilots in the world. Our technicians provide telemetry and tracking for satellites in orbit. Our analysts coordinate weather data for accurate forecasts and climate studies.
Our experts work tirelessly to improve all aspects of space flight, from launch to downrange support, on the ground, at sea, in the air, and in space. Every day, all day, people count on KBR for high-impact, mission-critical results. We are the future, designed and delivered, and you won't believe what we do tomorrow.
Wow, I really love that video. Thank you, Stuart. Hello, everyone. I'm Byron Bright, the President of KBR's Government Solutions segment. It is an honor to be here today to represent the men and women who are having a real impact in our world. I got started in this industry first as a customer. Having graduated from the best of the service academies, and later at Air Force Test Pilot School, I had the opportunity to work on some of the most complex military hardware. I saw firsthand how the military and industry could partner and solve any challenge. I've now been with KBR for 10 years this month, every day, I'm still amazed at what we can do together. We have with us today the key members of our team that will be speaking later.
You're going to be really impressed by their distinguished careers, and you'll probably sleep a little better at night knowing that these are the leaders working on the front lines every day. They're advancing science and technology, ensuring our national defense, and improving the communities we all live in. Before I start, I want to give a quick overview of who we are and the customers that we serve. Our Government Solutions business is a diversified, technology-focused business. We have over 18,000 employees at more than 200 global locations. We manage a broad portfolio through five major lines of business. As you can see on this pie chart, it's a good representation of our diverse mix. We have large international exposure, both Europe and Australia, which is a significant differentiator from our peers.
Additionally, you'll see that our logistics portfolio is in two parts, a large sustainment portfolio and a contingency portfolio. Many people falsely assume that we are dependent on overseas contingency. As you can see, much of our work is sustainment. We have over 2,000 logistics employees in the U.S. supporting work which is unrelated to any Middle East efforts. The customers we serve are equally diverse. They include international governments, such as the UK Ministry of Defence, the Australian Department of Defence, and other allies. We support all branches of the U.S. Department of Defense, NASA, intelligence agencies, and several other civilian agencies such as NOAA, the FAA, among others. The diversity of our customers is extremely well-balanced, with no concentration risk in any one area, this allows us to drive organic growth for a wide variety of situations.
Now that you know a little bit about us, I want to talk about why we believe that KBR Government Solutions makes a compelling investment story. We will show you a company that is built on high-impact differentiators. It is mission-focused. It is a global franchise. It is led by an amazing group of industry leaders and has delivered sustained, predictable financial performance. We will discuss the market environment and demonstrate the underlying funding that gives us confidence in our future forecasts. I will also discuss the resiliency of our customers that supports us even in times of volatility. Finally, we're going to show you how the business is poised for growth, driven by capabilities that are aligned to our customer needs and a sustainable business model with a proven track record of wins. Let's jump right in.
We use the phrase high impact because what we do matters. I was on an early Monday morning call with Stuart a couple of weeks ago, and he said, "How was the weekend?" I said, "Well, on Saturday, we put two Americans in space, and on Sunday, I got a call from the army asking for help to save the world with the COVID-19 Operation Warp Speed response." This is a true story. This kind of thing happens every single day at KBR. As an operationally focused contractor, we are in the middle of major efforts around the world all the time. These high-impact differentiators are what make us good value for our customers and our shareholders. Let me walk through some of these. We bring deep domain expertise in highly technical disciplines. This creates a very defensible market position.
As you can see here, our capabilities are aligned directly to our customers' most challenging issues across areas such as engineering services, scientific research, operational support, program management, and information operations. We are often embedded directly in our customers' facilities and locations, making us a trusted and indispensable partner. We also have global franchises that create a diverse revenue base. We are not dependent on single programs, technologies, or funding sources. Many companies support the U.S. overseas, but few, if any, of our peers are truly international businesses that are contracting directly with international governments at our scale. We have the infrastructure, capabilities, and reach that give us a unique growth platform. We have franchise positions within NASA's most critical human space flight and science missions. We have multiple contract vehicles with NASA extending our support out to 2025 and greater.
Additionally, we are the go-to contingency support contractor for the U.S. and U.K. deployed forces. We have many other diverse contract vehicles across engineering, science, and information operations. This allows us to drive work using multiple contract vehicles, often with the same customer, using what we call muscle groups. Our customers come to us to give them unbiased advice on how to apply the right technology. With very low capital investments, we are agile and can follow our customers over the long term as new technology advances and might disrupt a traditional OEM. We have a solid book of business that leads to predictable, sustained growth. Most importantly, we have both one of the greatest business development teams and some of the most experienced government industry leaders of any of our peers. It is our culture and people that truly make the difference.
The combination of experience, leadership, and business acumen fuels strong growth with significant cash flow generation. While it's good to have this solid underlying business, you also need to be in good markets. The robust nature of our market is another aspect of our compelling investment story. As you can see here, we serve the largest customers in the world, national governments. The U.S. Department of Defense budget is greater than $700 billion annually and has been steadily rising due to the need to keep ahead of peer nation states, and also to continually modernize an aging military. Because the new KBR has such diverse customers and capabilities, we have very little to no concentration risk on funding sources such as OCO, overseas contingency, or single agency budgets.
Similarly, we operate across multiple international governments, which continue to increase their spending as many are trying to get to that 2% of GDP for national defense, especially in Europe and the Asia Pacific, two of our largest areas. One of our other core markets is NASA, which we've talked a lot about. NASA continues to see bipartisan support with budgets increasing year-over-year, and more importantly, a real strategic commitment to both commercial space and going back to the moon and to Mars. In this time of COVID-19 and economic uncertainty, the government has proven to be very resilient. I have personally been amazed at the support we've seen over these past three months. They have modified contracts to allow for teleworking and flexibility. They've advanced cash payments and really been a truly amazing partnering customer.
Even with all of this goodwill, in these times of uncertainty, some may worry about whether these markets are really sustainable and how will KBR perform under budget pressures. We believe we will do well. First, our analysis shows that the markets will continue to be at high spending levels. As shown on this slide, the challenges facing the U.S. and our allies are vast. They include cyber threats, terrorism, space exploitation, the rise of the near-peer, human health concerns, and ever-increasing technology advancements such as artificial intelligence and machine learning. These external drivers will continue to push demand and spending for national governments. Whether we have a Democrat or Republican in the office, whether the nation is focused on national security or the pandemic response, the governments are going to continue to spend money and buy KBR services.
Secondly, even with some headwinds on the budgets, as an operationally focused contractor, KBR is positioned within the government's current priorities and brings technology-enabled expertise to the issues of the day. We can grow in difficult times by taking market share. It's not the customer budgets that drive our growth. It's really our differentiated business model and how we are positioned within these markets, which are fueled by those external factors. This is that third element of our compelling story, a platform for growth. KBR has built a platform and a business model over the past 5 years that has multiple growth pathways. First, we have that expertise with customers' most critical programs across engineering, science, and operations. We are embedded in their highest needs around defense modernization, space exploitation, and health and human performance. This solid book of business help us understand our customers at a deep level.
Secondly, this close customer intimacy and diverse contract allow us to grow in multiple ways. We can leverage our past performance into takeaways to increase market share, such as our SANGCOM project in Saudi Arabia last year for the U.K., the special operations human performance work we took away from Booz Allen, or the most recent win at Marshall Space Flight Center, where we took away work from Teledyne Brown. In 2019, we captured over $1 billion of takeaways. In addition to takeaways, we also increased market share by generating on-contract growth, sole source contract extensions, and often as an incumbent, we are in an advantaged position for winning those recompetes. In addition to our current book of business and associated growth vectors, we have a significant suite of IDIQ contracts that allow us to drive organic growth.
These IDIQs have been competitively won, they have a limited pool of competitors. Each one has a different possible scope, different terms, and different advantages for our customers. This allows us to tailor not only our technical offering but our commercial contracting model as well. We are bringing customers a total solution to solve not only technical issues but their business issues. This agility requires a highly experienced BD team partnering with our solution architects to make this happen. These wins on the IDIQ task orders are allowing us to embrace new technologies, hire unique expertise, and build out more and more capabilities and experience. This fuels our synergies so that we can leverage our scale into larger and larger efforts. As you can see here, this is proven out by our current pipeline.
We have over $12 billion of business to be awarded in the next 24 months. What's also impressive is that the total $69 billion pipeline is fairly equally spread across all of our lines of business. Many of the bids are over $100 million. You can see there, several exceed $1 billion. As we win this new work, we are expanding into new customers across new capabilities and new programs that continue to fuel more and more growth. Each of these examples listed here represent a very specific opportunity in our pipeline to give you confidence that we have a solid platform for growth. In 2019, our total win rate exceeded industry averages at over 65%. These wins allow us to restart the growth cycle. As the new customers become current customers, we start all over.
This unique growth model, starting at the top with our current book of business, increasing our market share, using the agility and expertise of our IDIQs, leveraging synergies to create new customers. Then starting over as we deliver excellence, creates a flywheel of predictable, sustained growth year-over-year. This growth engine is fueled by many factors. It really starts by our people. The stellar performance we have on contract that builds that underlying customer trust. In summary, I've tried to give you a small snapshot of why we believe KBR's Government Solutions business is different and makes for a compelling investment story. We are mission-focused with a global franchise. We operate in massive government-funded markets, performing the most critical work for all of our nations. Then we package that into an enduring, sustaining BD engine with top-tier win rates.
I'd like to thank you for your interest in KBR. I want to now turn it over to the panelists. These are the leaders you're going to be amazed by that truly impact the world we live in. Please let me first introduce Dr. Vernon McDonald. He really hates it when I call him Doctor, by the way. Vernon leads our strategic solutions group with our chief digital officer. Vernon has a team of solution architects that horizontally integrate across the company, helping us leverage synergies, focus on technology infusions, and connect our people in a manner that leverages the power of KBR anywhere in the world. Thanks again for your time.
Byron, thank you for that introduction. Thank you for setting the stage for the KBR Government Solutions Fireside Chat. Today, we're going to demonstrate for you how and why KBR is committed to leveraging technology-enabled solutions for customer success. I'm Vernon McDonald. I'm joined by Ella Studer, Rob Hawkins, Andrew Barrie, Pete Green, and Todd May, each of whom are our business leaders leading a segment of Government Solutions. We're going to get started with a quick introduction from them of both themselves and their business. Pete, I'll let you lead us off.
Thank you very much, Vernon. My name is Pete Green, I have the privilege of leading 3,400 amazing scientist engineers and subject matter experts in KBR's engineering business unit. If you look in the bios that you've been provided, I understand you can read about our education and background in there. Above and beyond that, I will point out that I've been in this business for 35 years. I started out as a test pilot, flew for 16 years as a contract test pilot, and have grown up through the industry, to the opportunity of actually leading this business unit. Now I direct your attention to the baseball card that you should be seeing on the screen. You can notice that the engineering business unit is located where our customers are, and that's in a lot of locations.
Our customer mix is all the way across DoD and also includes the intelligence community. About one-third Navy, one-third Army, about 20% Air Force, and the rest of it falls into the intelligence community and other federal agencies. We are known for our high-end systems engineering and integration support that we provide, and also our domain knowledge, which many times is platform knowledge. Also we develop a great customer intimacy with our customers through time. As an example of that, we are the largest professional engineering services contractor in NAVAIR across their entire enterprise. We have over 1,000 employees, and we have supported every single aircraft that has been acquired by the United States Navy since 1968. We started with the F-14. That's the jet that was in Top Gun 1.
We are the largest SE&I contractor in Army Aviation as well, and we support air and missile defense there as well. We have 40 years of experience, very specifically in supporting the Patriot missile system through all of its upgrades through those 40 years to continue to make sure that it can stand watch in air and missile defense over our troops and our allies wherever it's deployed. We also have 30 years of supporting the Air Force Satellite Communications network. There are over 170 satellites in space that are military or national security assets, and there are only eight global ground stations around the world. We sustain those ground stations to ensure that they're available to talk to all 170 plus satellites, passing information up to them and downloading information from those satellites as they orbit around the world.
I'm very proud of the fact that we have the largest independent flight test organization in the world, is what it says on the chart. I like to say in the galaxy, and that includes 40 years of actually augmenting and being on the test pilot school staff at Pax River.
Good morning. I'm Rob Hawkins. I'm the head of KBR's Government Solutions business in the Asia Pacific region. I began my career, as an officer in the Australian Army, before moving into industry some 25 years ago, where I've been fortunate enough to develop and apply my passion for implementing business growth strategies in the defense market sector. I've been in my role now in KBR for five years and have the pleasure to lead the successful year-over-year growth of the business. I believe we're the fastest growing part of the company in year-over-year percentage terms, over 35% revenue growth over the last three years, with great average margins over the same period. This growth is closely aligned though to the significant increase in defense investment by the Australian government.
They have increased their budget to 2% of GDP in order to deliver an ambitious defense modernization program or what's referred to as the Integrated Investment Program over the next 10 years. Because we deliver program and technical solutions to the military across the full program life cycles of military equipment, we are really well-positioned to support the government's modernization program. In simple terms, what we do is we make sure the equipment and systems the military introduce into service does what it's supposed to do in the way it's supposed to, and when it's needed. We do that through a couple of things. Managing the acquisition of new equipment and systems for defense, and then designing and implementing and maintaining the sustainment programs for that equipment through life. We also ensure the military operators and maintainers, the crews, can actually do their jobs.
If they have the right competency and skills, and we do that by designing and implementing bespoke product agnostic training solutions that utilize the latest in virtual reality, augmented reality, and mixed reality technologies. We also ensure that military operators can plan and conduct military air operations by developing, modifying, and adapting, and supporting the mission planning systems and software tools that they need to perform their missions. Our business model typically has three components. Initial technical advice and solution design, which is often short-term. This gives us an opportunity to pull through into the solution development and implementation, which is typically a longer-term activity, and in turn provides us with the opportunity to then pull through into the sustainment sector, which is a long-term opportunity providing ongoing support services through life. This model typically supports a very enduring customer relationship and typically leads to long-term engagements.
It is a proven model. It's a successful model with some of our engagements spanning more than 20 years over the 3 stages.
Good morning. I'm Andrew Barrie. I'm the president of KBR's Government Solutions business in Europe, Africa, and the Middle East. I've had varying roles within the government sector for over 18 years. I'd like to think we do some really cool things. I love the diversity of what we do and where we work. That and making the best profit margins in the group. That keeps me pretty excited. Let me put some shape around this part of the business. We've grown year-on-year for the last five years. We've become a highly profitable $800 million revenue business. Employ over 2,000 staff who work in 10 countries. With a strong backlog of profitable work and with a strong pipeline of exciting opportunities. The backbone of the business comprises our well-regarded private finance initiative, PFI projects, what you might call in the U.S. public-private partnerships.
A portfolio that we have includes Aspire Defence. This is a contract about modernizing the British Army real estate in the U.K. We look after about 40% of the army facilities, and we manage the construction work. We also have an enduring facilities management and support services contract that runs through to 2041. Second project is Affinity Flying Training Services, which provides three fleets of aircraft. There are 38 planes in total, and they're used for training military pilots. I'll come back to that in a short while. The third key project is Heavy Equipment Transporter, which is really about providing tractors, trailers, and military reserve personnel to move armored vehicles for the British Army. These government-backed PFI projects provide KBR with material stable, predictable cash flow for many years to come. They really do provide a great sort of base load of enduring work.
That's not all we do. We provide project and program management to other parts of government. For instance, last year we were awarded a role on the 20-year, what's known as the program and project partnership at Sellafield, which is about helping to safely decommission the U.K.'s decades-old nuclear waste. We help the British military modernize, update, and maintain key battlefield systems such as fuel and water systems. Similar to Ella's business, we're still supporting military overseas missions by providing deployed operational support staff. We're coming up for 20 years of having done that, but we've still got over 1,000 people providing support to British and NATO troops in the Middle East and parts of Africa. We've been a significant player in the U.K. defense for over 30 years.
It's a real privilege to have been selected as one of the few U.K. government-designated key suppliers recently, which is really about the U.K. recognizing our scale and national importance. Looking to the future, we see real growth opportunities in our defense and broader government markets. We set out a strategy two or three years ago on which we're making some good progress. We're taking market share. We're diversifying our business, and now we're well positioned for various large-scale opportunities that are in the pipeline. Additionally, we look to extend our offering, and a couple of years back, we created an advisory business. In that business team, we're supporting our customers from the initial conceptual thoughts around their future needs and challenges.
And from that, we hope to remain invaluable to them as they develop their thoughts into projects and beyond, such that we provide the through-life support, very similar to Pete and Rob's business. We become the trusted, enduring expert, hopefully creating sticky relationships. So in summary, with our great earnings visibility, our predictable long-term cash flow, with a significant pipeline of opportunities across our growth markets, the truly talented and committed folk that we have in the team. And did I mention the margins we make? It's a real privilege to look after this part of KBR in what is a really exciting time. Ella, can you beat that?
Well, Andrew, I think I can. So good morning, everybody. I'm Ella Studer. I'm the Senior Vice President of the Logistics Business Unit. I've been with KBR about 14 years. I retired from the Defense Logistics Agency as their senior executive responsible for their facilities management and their military construction projects. I'm also a veteran. I served in the United States Air Force in the Ohio Air National Guard as an aerospace ground equipment technician. Well, you can think about my business like this: I'm the big sister. I'm the billion-dollar business, delivering complex operations around the world in some of the most difficult and austere locations, 24/7, 365. I have about 12,000 employees, 7,600 direct hires, and about 4,400 through subcontracts. 40 different nationalities comprise my business at about 145 locations working around the world.
And if that's not enough, I'm infusing technology to make significant improvements in our labor efficiencies, quality of work, and how we deliver margin. You can think of my business like this: We have about three different operation areas. I have long-term sustaining operations with expansive capabilities in logistics, maintenance of numerous types of complex life support requirements for facilities like utilities. I have maintenance of support equipment like computer-based control systems, very complex fire suppression systems, and boy, do I have vehicles. I have thousands of vehicles. Tactical equipment like tanks to non-tactical equipment like electrical vehicles. Second, I'm the largest maintenance provider of pre-positioned stock with equipment and material on land and afloat around the globe for the Marine Corps and the Army. For the pre-positioned stock, you can think about the afloat program. I have about 15 ships.
As you saw in Byron's photos, you saw that big ship out there with all that military equipment. That's one of our ships that are involved in the program. They're the length and size of about three football fields, but they hold five football fields full of material on several decks. That's about $6 billion worth of equipment and supplies that we maintain. And third, yes, I'm a contingency contractor. I'm very proud. One of our things our customers always talk about is KBR is always there when needed. We're very proactive in planning to meet the continued unpredictable requirements that at drop of a hat we're asked to accomplish. That's a quick snapshot of the Logistics Business Unit. Andrew.
Well, my name is Todd May. I came to KBR about two years ago after a 28-year career at NASA. During that time, I had the chance to work on some of NASA's most complex and largest development programs like the International Space Station. I managed the Pluto New Horizons mission program and also was the first program manager on the Space Launch System, NASA's heavy lift rocket to explore deep space. My final post was as the director of Marshall Space Flight Center, one of NASA's largest field centers and their largest development center. As far as our business unit, Andrew, you may have the highest margin, and Ella, you may be the big sister, but I'm definitely the cool kid in the school, and I'm closing fast on your $1 billion, Ella.
We're the second largest professional services provider to NASA with a presence at every NASA field center. It also accounts for two-thirds of my portfolio. We're also the largest services contractor to the U.S. Geological Survey, and we serve other agencies like the Department of Transportation, NOAA, the Defense Threat Reduction Agency, and SOCOM. As far as my business unit, I'd like to highlight three areas where I think we are world-class or best in class. First, we provide highly skilled space operations. We fly the International Space Station 24/7, 365, and we fly 17 other satellites to provide critical Earth observations and lunar reconnaissance. As Byron mentioned, this month we won a $600 million takeaway contract to conduct payload operations for the International Space Station, which includes back-office operations for the launch of the Space Launch System. This further solidifies our pole position in the space operations market.
We also provide launch and range operations at Wallops Flight Facility, including launching commercial cargo flights to the International Space Station. We maintain all of NASA's spacesuits, nearly half a billion dollars of critical space assets, and support the underwater training in NASA's Neutral Buoyancy Lab. Our second major area is that we do highly skilled research and development, including problems like performing mechanical testings of the very sensitive James Webb Space Telescope, which is the size of a tennis court, but it's highly complex and very sensitive to disruption. We're also making quantum computing a reality with our NASA partners, we are in intelligent systems and artificial intelligence and work on problems such as how are you going to handle automated cars and drone traffic flow management.
We've supported the development of over 60 satellites, including the innovative on-orbit servicing demonstration mission, RESTORE-L, which was recently confirmed by NASA for full development. Our third area is highly specialized health and human performance for every astronaut and every Special Forces soldier. We do cutting-edge research into the effects of space on the human body and the mind, and we do specialties like ocular degeneration and bone loss due to long duration in space exposure. We have trained every astronaut since the 1960s, this year we became the first company to train private astronauts in NASA facilities.
That's great, folks. By now you should know that we're global, diverse, and involved in multiple high-impact mission critical programs. We also have a group of very experienced and highly motivated business leaders with just a little bit of competition there, I think you heard. One common theme I heard throughout Byron's overview is that our value proposition is a solution-driven approach that ensures we deliver value to our customers. Solving their problems is the priority, and a key attribute is always being mission-focused. Todd, can you describe how this factors into your business success?
Yeah, as I said, we're the cool kids on the block, and one of the things that's really cool about what we do is how integral we are to our customers' missions. When you're supporting the operation of a $100 billion one-of-a-kind international asset like the International Space Station, you have to be mission-focused. Recently, when we acquired the ROCK contract at Wallops, we started to support the Cygnus launches, which are commercial launches to the International Space Station. It dawned on me that we are doing launch operations and range operations on a commercial launch that includes payloads that we built for our customers at Ames to a space station that we fly from a control center that we built to be installed by astronauts that we train. That's domain dominance.
When Doug and Bob recently returned to space from American soil for the first time in almost 10 years, we know that we trained them, and we provided real-time telemetry and radar for the launch. We know our Special Forces missions is critical to our nation's security, and our support to them is very personal and very intimate. I'd also say, like Ella's business, we perform highly technical operations and logistics around the clock on very difficult tasks in very remote places.
To support Todd, around the world, he talked a little bit about satellites and things like that. To be able to run them, you have to have power. One of the critical things that my team does is provide power around the world so that all the missions can be accomplished 24/7, 365. I'm still going to compete with you a little bit there, Todd. One of the things that we do to make sure that that power is up 24/7 is we have a program called Condition-Based Maintenance Technology. For part of our smart maintenance program, we use things like vibration analysis, infrared thermography, oil analysis to identify maintenance needs before the asset fails. We provide proactive repairs to save the client money and to avoid downtime.
As an example, in the Oil Analysis Program, we reduce the number of oil lubrications and changes, thereby reducing the repair and the labor cost required. This program also extends the life of the equipment, which is very critical to the mission, because they detect potential failures and we correct them before they can occur, also driving out cost out of the process.
Ella, if I may, let me build on the mission focus theme. Sometimes our mission support has a different dimension. I could have picked various other project that we currently work on, but let's come back to the Affinity Flying Training PFI that I mentioned earlier. This is a contract to provide aircraft to the U.K. military so that they can train rookie pilots. Sounds simple, but let's scratch the surface. The objective in training military pilots is to deliver training sorties at the lowest cost per flying hour. You need to consider both the CapEx and OpEx costs. When we were looking to win this work, our smart folk, they took the specified military flying training syllabus, they reviewed the sortie requirements and objectives. They looked at other factors such as volume, plane types available in the market.
From this, they built some fairly sophisticated financial models. Then they iterated around things like different aircraft types, downloading training sources to the lowest cost platform, CapEx versus OpEx loadings, aircraft daily availability assessment. Now let's layer on the fact this was a PFI contract. We also had to ensure that we could raise the debt, non-recourse debt, to buy the aircraft. Fortunately, in-house, we've got an expert team who understand the intricacies of project financing and structuring bankable deals, and they were able to meld the technical solution, the risk transfer obligations, into contractual basis that not only met the stringent requirements of the banks, but also the government as buyers here.
Amongst all of this, there's a need to have a deep understanding of the customer, their expectations and requirements in terms of training ethos, training protocols, military aviation accreditation, and not least affordability. Getting all of those factors right led to our selection and the award of the Affinity contract to provide three fleets of aircraft, 38 planes in total. That's one of them, if you can see the photo behind me, which enables pilots to progress to become military aviators. Hopefully, this brings to life how we fuse customer intimacy, deep technical understanding and expertise, commercial acumen, and creative project finance capability to create solutions that support our customers' missions, but also benefit KBR, in this instance, with an 18-year-long contract.
Thanks, Andrew. Clearly mission focus is key and domain expertise is critical for the complex solutions we deliver. We all know there are other companies looking for ways to take our business, differentiation is also critical. Rob, how is it that you differentiate from the competition in the eyes of your Australian Defence customers?
Yeah, thanks, Vernon. Well, firstly, in our training business, we have a couple of very distinct differentiations. Firstly, as a registered training organization or an RTO, we can award nationally accredited vocational training qualifications for both electrical and mechanical trades. It's a significant investment and difficult to attain. It's probably more difficult to actually maintain due to the very stringent national delivery and performance measures and criteria that have to be met. This accreditation as an RTO is a significant barrier that's a competition for this training work in defence. In fact, there are really only two other defence competitors, and it really provides the foundation for a long-term, enduring relationship with our key military customers. In fact, with our Navy customer, we've been delivering the technical training now for over 25 years.
Secondly, our technical expertise and innovation in design, developing and implementing bespoke workforce training solutions that are technology and product agnostic, that utilize highly immersive virtual reality, augmented reality, and mixed reality environments, allows us to deliver real accelerated individual and collective training and competencies, and therefore expertise for the military workforce.
Thanks, Rob. Far, I've heard how we leverage a solution approach combined with mission focus, solves customer problems, as well as allows us to differentiate from the competition. Yeah, that's all good, I do know there's more. Pete, tell us how you've been able to add even greater value in your DoD business.
You're right, Vernon, there's more. We have a few examples that we can talk about adding significant value to our customers. I think one of the examples I like to talk about is how we've been able to extend the life of the F/A-18 aircraft in the United States Navy. About 10 years ago, it became apparent there were significant delays in the development and acquisition of the Joint Strike Fighter. It was creating a burgeoning strike fighter gap that was predicted to have a major impact upon the United States Navy's ability to project force globally. On top of that, you had to layer a readiness issue as well. There were significant readiness availability issues with the F-18s. We were already in the Joint Strike.
We were in the F-18 program office doing domestic support, and we were also doing FMS, foreign military sales support. We sat down with PMA-265, the program office customer, and spoke to them about some ideas that we had for how they could go ahead and extend the service life. We launched into a white paper, from there, we addressed the problem. They turned that into a contract, and our first award was in 2010 to start doing service life analysis. It involved extensive research to identify the issues and to map a get well plan of action and the milestones along the way. It was focused on the C and D models of the F-18. The goal of this was to take fatigue life, the actual length that the jet was designed to fly, from 5,000 hours to 10,000 hours, doubling the life of the aircraft.
We pulled a team together. It involved multiple folks across industry, including people that actually are OEMs. It involved academia. We pulled this together to execute a pilot project and then the follow-on. It was extremely successful, a decision was made a couple of years ago to also include the E and F models and the Growler, which is the electronic warfare version of the F-18, into the Service Life Extension Program. We have filled the gap, additionally, we have increased the readiness from 50% to an availability of 80%. We've just been awarded another $85 million contract to continue that important work.
Nice job. You were right. There is more. I think you've all made it clear why we have an enduring and resilient Government Solutions business. Let's pivot a little and focus on one of the major factors driving change in our business. If anything, the 21st century is technology-driven and digitally enabled. Over the last 25 minutes or so, I've heard each of you how you're driving business solutions that leverage digital technology. Perhaps we can share a few examples with our audience. Pete, how about you get us started?
Yeah. We're not just in program offices and wearing flight suits. We actually have people that wear lab coats when they come to work, working much more on the left-hand side of the acquisition spectrum in research and development. I'd like to talk a little bit about explainable artificial intelligence. I thought about this last night as I was prepping to talk to you. I am talking to people in Wall Street about artificial intelligence, and I'm sure you have applied it for many years. I think you buy and sell inside my 401 every day, probably using artificial intelligence. Our applications are different. We have been developing a mathematical framework that brings fully explainable, adaptive learning methodologies into analyzing data. We look at data relationships. We're looking for non-hypothesized correlations.
We're trying to find the things that even Vernon will not think of, correlations. We're being used for some different use cases, using artificial intelligence. One is to go ahead and detect defects in engine parts in aircraft and predict those. We're also using artificial intelligence to take the information from multiple sensors and take those hyperspectral images and increase the speed and accuracy of image analysis. We've also gone ahead and applied it to suicide prevention in the Air Force, looking at the trends, looking at the data, and try to intervene before there's a crisis. Most recently, we were asked by the Air Force Research Laboratory to go ahead and model COVID-19 and look at the potential impacts on strategic aircrew and strategic missile crews.
Not to be outdone by the cool kids, I want to tell you about some data-driven approaches we're doing in the logistics business here. You can imagine the numerous pumps and motors involved in the very complex systems that we manage across my portfolio of business. We're equipping our technicians with vibration analysis equipment and using our computer tablets linked to our maintenance management system, part of our smart maintenance program. That enables our technicians to see their work for the day, access procedures, record their activities. Let me give you a couple of examples. For example, in Djibouti, Africa, Pete, I think you've been there, our technicians and mechanics complete over, in 2019, 40,000 work orders, creating savings of supplies and labor hours.
On another one of my projects, we use digital tools combined with our KBR's Performance Excellence Management operating system, known as KPEX, to reduce facilities repair and service orders. We've been able to reduce the backlog by more than 50% in four months. These productivity improvements allow our employees to get involved and be able to promote a culture of sustained employee engagement so that we have visual metrics on the shop floor so they can develop solutions and be able to drive improvements in our processes. That also improves the labor efficiencies and increases our margins.
KBR's got a long history of acting as an integrator. What do we mean by that? Acting as an integrator, we're an agnostic company buying the most appropriate fit-for-purpose OEM components and turning those into cost-effective capability for our customers. That's what we mean by acting as an integrator. Increasingly, we're taking that expertise into the digital arena, supporting our clients to modernize and create efficiencies in different ways. I just want to give you 2 quick examples of what we're doing here in the U.K. The first one, we're working in partnership with Microsoft, developing applications using HoloLens 2 technology, which is supporting the defense medical agencies in various ways. Take, for example, battlefield trauma instances or CBRN, chemical, biological, radiological, and nuclear hazardous situations. By their nature, they're going to be difficult to replicate for training purposes.
By using augmented reality, mixed reality capabilities that HoloLens 2 offers, our team are creating amazing fidelity and significantly enhanced learning experiences for defense medics to practice their craft and develop new techniques. In another example, we're supporting a U.K. nationwide program to modernize the capabilities around crime scene investigation, and that's both in terms of forensic science and digital forensics. We're part of a government police force, KBR Rainbow team, not only trialing new digital technologies, such as rapid fingerprint systems and rapid DNA testing. Taking those tools, working with the law enforcers to redesign their systems, their processes to ensure that they can benefit from collecting faster crime scene evidence, improving criminal investigations, and enabling more assured prosecutions. We're seeing a great opportunity to take our digital skills to help support our clients in ways that tend to lead to enduring relationships, long-term support contracts.
I know we're not the only ones. Todd, I know you can take us into a different orbit on this.
Well, I think due to the nature of the work we do for our customers, whose missions are pushing the limits of technologies, I could probably talk all day about the technologies we're involved in. A couple of really interesting examples to me, we are key researchers in NASA's quest for quantum supremacy, including some of the authors of some of the recent papers in that search. Our folks are also working on things like unmanned aerial systems to deliver low-altitude goods and services. In fact, that team, working with their NASA customers and several key industry companies that you would recognize, won NASA's 2019 Software of the Year and 2020 Invention of the Year. Leveraging off our work for Health & Human Performance portfolio for the astronauts, we're working on wearable sensors for the Navy and Air Force pilots.
These provide real-time and post-flight performance of life support systems and monitor their physiological state so that we can monitor students during the training exercises to improve their performance in real combat scenarios. I'll probably stop there or I'd take up all the rest of our time.
Yeah, clearly lots to talk about in that arena. At the end of the day, I think we're looking to translate this mission-focused technology-enabled solutions approach into extending our business, right? Both in size and longevity. In other words, this is our platform for growth. Pete, how about you talk a little bit about how your business is positioned for growth going forward and some of the enablers for that growth?
Sure, Vernon. I've already kind of alluded and shown you some numbers that I think indicate our level of customer intimacy and long-term engagement with many of our customers. Some examples of those platforms that we've supported for an extensive period of time are the F/A-18, which we talked about a little bit, the E-2 Hawkeye, which is kind of the eyes and ears, the quarterback of the fleet. It's the airborne radar aircraft that flies from the carrier. The Patriot Air and Missile Defense integrated air missile defense system, which protects our troops. The MRAP is another. This is the Mine-Resistant Ambush Protected vehicles. Many of the vehicles that Ella has in her ships are MRAPs, and we've been involved in improving them, making them safer, making them more reliable.
It's interesting, when we engineer those pieces, many times it's Ella's folks that have to do those upgrades when they come off the ship. We're able to provide an agile contracting vehicle to allow us to do these kinds of things. The Defense Technical Information Center family of IAC contracts has been that agile vehicle that we've used for the last 15 years. From that white paper we wrote, talking to the F/A-18 folks about Service Life Extension until actually doing the work was only about six to nine months, and that's what we run. It is competitive, it is best value, when we write the white paper, we have about a 90% probability of win. Byron talked about muscle groups. We use IAC/MAC, the Information Analysis Center Multiple Award Contract.
We use that in concert with other contract vehicles for a broad spectrum of support to our customers and their task. F/A-18, as that example, has six different contracts running in it right now between domestic and foreign military sales and service life extension work. It lends itself to progressive engagement as well. This is a contract that's easy for us to have with our operations and business development teaming. We are there. We understand the problems, and we can bring solutions to those customers. We've had it for 15 years, I mentioned. In those 15 years, we've done $5.8 billion in those IAC family of contracts. The present vehicle is called IAC/MAC. It has a $28 billion ceiling. There were 14 prime awards, and it will run till 2028. We will do $400 million in revenue this year, approximately half of our revenue in this contract vehicle.
Well, let's see, Pete, you talk about the muscle analogy. I think what you just described there in the IAC/MAC is maybe a calf muscle on an elephant. That $28 billion vehicle, and you win your tasks one at a time. The kind of stuff that I tend to go for are the larger heavy lift types, but they're also highly competitive. I would kind of characterize our contract types as maybe the quadricep on an Olympic athlete. We're going for the tunas and the whales, and that requires a finely tuned business model and a business development machine. But probably one of the most interesting things about the nature of our largest contracts is that they're designed to be adaptable. They're centered around capabilities. For example, with NASA, as their future evolves and they take on additional mission, our work goes with it.
Today, for example, we fly the International Space Station, and we do health and human performance and things like that. But as NASA pivots to Artemis and the Moon, that's additional work for us. We don't stop flying the International Space Station. We don't stop doing that work. Just this year, in our largest contracts, our revenue is up 20% through the first half of the year because of this phenomenon.
Like Pete and Todd, I have both full and open big, large contracts, and I have numerous task order contracts in my portfolio of business. They're long-term contracts. I average about, I think, eight years and the longest around 10 years to drive efficiencies and growth. Long-term contracts really allow us to do that. We partner with our customer, though, to continuously look for ways to improve services. As Byron mentioned in his presentation, we do what we call a lot of contractor-initiated proposals. In 2019, on one of my projects, we submitted over 16 contractor-initiated proposals. They're kind of like Pete's white papers, and we grew revenue on that project by 23% to the benefit of the customer and KBR.
Thanks, Ella. Clearly, we've got a lot of enablers for growth already in place, I'd like to wrap up with one more, and that's the potential for global synergies. Clearly, there are a lot of touch points among our regional efforts. We've heard about some of those already. Let's chat about some specific examples of where we're starting to see this global collaboration. Todd, you have a substantial footprint in U.S. civil space. How does that enable a broader KBR effort to build a global space business?
It's a very synergistic thing. We're already collaborating with Andrew and Rob in space as their countries come online in a big way. As a matter of fact, at the Australian request, I flew over there last year to actually give them some advice on the directions they're headed. Really, for me, one of the other big synergies here is with Pete's world. A couple of years ago, I had an aha moment at the Space Symposium. There was an Air Force colonel that was speaking about space and the Space Force, his assertion was that there's nothing unique about space. It's just a new frontier, every new frontier is a continuum of peace and war, if you're going to have civilian presence there, you're going to need a sheriff. To me, that was the big aha.
Space is the high ground. It's a new frontier. If we're going to have civilian and commercial work there, we're going to need a Space Force. Everything you do for civil space, everything we're already doing there, designing spacecraft, flying them, doing the communications, the ground systems, the operations, are really the same type capabilities. As that comes online, I think Pete is very positioned to pick that up and run with it.
I think we are, Todd. Before I start any conversation, though, about military space, I'd like to talk a little bit about the threat. We're not able to go into that in detail here, I'm here to tell you that over the last 5 years, the threat by nation states on near peer has greatly increased. Folks want to deny us our ability to operate in space. There is a resurgence. You may have heard of the Space Force. There's a resurgence in focus in military space and national security space. We're excited to be at the beginning of this, we have worked with Todd as we're looking at where we can grow.
We're looking at launch capabilities that he has at Kennedy Space Center and also in Wallops, and how can we apply those into growing our military space support in the launch area.
Let me build on Todd's sort of commentary around the international sector. Investment in the U.K. space sector is going to increase. Today, it's something like a $15 billion industry. We anticipate that the government wants to grow this sector to something like $50 billion in the next few years. We expect that expenditure will increase in things, for example, like military upgrades and new capabilities, U.K.-based support, the Artemis program, and the likelihood of new sort of national resilience programs as the U.K. exits the European Union. We want to take the expertise that Todd and Pete and their teams have and be at the vanguard of the U.K. space growth program that we foresee coming.
In Australia, in 2018, the Australian government established the Australian Space Agency with a goal to triple the size of the market in Australia to AUD 12 billion a year and create up to an additional 20,000 jobs by 2030. Given our NASA heritage and our commercial military space expertise, of course, not forgetting our very own space sheriff in Todd May, the opportunity for us in Australia will be significant in the coming years. We have a great opportunity to play a significant leadership role for the Australian Space Agency in implementing the Australian civil space strategy over the next decade or more.
I know people think the logistics supply chain is a bit boring, but my team is helping reimagine the global supply chain to help space-enabled point-to-point global delivery in under an hour. Companies like SpaceX and Virgin Galactic are developing the required space transport systems. We're collaborating with United States Army, and we have a proposal in with the United States Air Force to design and develop the logistics concept of operations for supply chain in support of these space transport assets. Activities range from moving cargo between the spaceship to cargo deck to the ground platforms, or transporting the cargo between the spaceship to the warehouse and sorting and storing, refilling in preparation for launch and landing in far forward locations. Many of the activities my team does today for traditional logistics operations will tomorrow be fully space-enabled. Watch out.
I'm in space also, guys.
That's great, Ella. Thank you. Well, there you have it. Through the combination of mission focus, technology utilization, domain expertise, I think it's fair to say KBR is differentiated and positioned for growth with a resilient and diversified high-impact business. Thanks to all my colleagues today, and thank you for joining us. We're going to take a quick five-minute break right now, and our CFO, Mark Sopp, will pick back up after that. Thank you.
Hey, folks, welcome back from the break. Vernon, thanks for leading a great panel. Again, this is Mark Sopp, CFO. Thanks for joining us today. Really appreciate it. Hopefully by now you're starting to see why we're so excited about our government business here at KBR. The team is performing remarkably well. We're really proud of their efforts, and I hope to expand on that here in the next few minutes, and then we'll have the whole group involved in the Q&A session, and then Stuart will finish it up. First, I do want to share the remarkable growth and diversification story that has unfolded with this business area over the past couple of years, and also the stable and predictable stream of profits and cash flow that it now produces, yet at much greater scale.
Furthermore, importantly, this scale extends quite far into the future due to the nature of the customer missions we perform and particularly the long-term contract positions we have. We think this scale, diversification, and consistent performance, plus the visibility, is quite a bit different than many common perceptions out there about our government business and hope to clarify some of that today. The second part that I have simply lines up our performance and scale relative to some of the peers that we admire and work with every day in the public GS space. We think you'll see this represents a very interesting and attractive investment opportunity. Just a little over four years ago, KBR's government business was just a few hundred million in revenue, and as you probably know, was singularly focused on logistics.
That focus has led with success to our market leadership position in that area. We're pleased with that. As you see with this chart, that has grown remarkably well over the past few years to now being well over $1 billion in scale. We're well known for leadership in logistics. Ella, Andrew, and their teams have done a remarkable job building a great franchise. I'll also say they execute really well. They deliver better margins than you might expect, largely due to there being quite a few performance-based contracts in their portfolio. I'll cover that in a bit. Starting in 2016, we set course on a deliberate growth and diversification strategy, focusing on space and defense modernization, but with a global view in mind. That year, you might recall, we made some acquisitions.
We integrated them over the course of roughly a year. While doing so, we actively de-levered. After completing that in early 2018, we added more acquisitions. We integrated again. We also actively de-levered afterwards. The acquisitions indeed were key to our transformation. We think the ultimate measure of success in M&A is the organic and profitable growth generated by the combined business once it's all put together. Look, we could not feel better about the results. During 20 18, this team that you've seen here today posted industry-leading organic growth, averaging about 13% each year, and together adding about $750 million of revenue base over that period. You can see the steepening of that curve as a result, in many ways, of this organic growth. Through this period of remarkable growth, we kept the employees. We kept our key customer relationships.
We teamed up to win new, exciting work, including some very interesting takeaways, synergies, if you will. Most importantly, we built this strong management team that's still here today that has delivered a very impressive track record for growth. As you probably saw earlier, we can maybe do better with jokes in this group. Being the CFO, I'd rather take the former in terms of the performance. We'll work together on the latter. Just in a little over four years, KBR Government grew 10 times from $400 million to $4 billion today. Very importantly, key takeaway here is it's now almost equally split across five diverse business areas. We have contingency logistics, sustaining logistics, international, engineering, and space. This cuts across different funding sources with good balance.
For example, our domestic and international mix is about 75/25, which is a distinction for KBR. Also fairly equally balanced across operations and maintenance funds, RDT&E funds, and OCO government budgets. Quite a bit different than perceptions we think. Profitability has gone hand in hand with the growth with consistent EBITDA margins of around 10% while producing double-digit organic growth. That's usually not too easy. Cash flow is strong too. I'll cover that in a moment. The resulting $400 million EBITDA generating cash machine has scale, has diversity. Furthermore, is repetitive and predictable because of the contracts we have a lot of runway on them. Let me shed more light on that. Here are the top 10 contracts in terms of expected EBITDA contribution for this FY 2020. These top 10 represent a really nice cross-section across our entire government business.
Logistics, engineering, space, and international, all represented here for you to see. These 10 together produce about 50% of the total EBITDA of our government segment today. A lot of coverage here. Having just successfully come through a pretty heavy recompete period, which we talked about in our calls, these programs now produce excellent long-term visibility for earnings and cash flow due to the unusually long-term nature of their period of performance. Eight of the top 10 extend beyond 2024, and a couple of those much further out. The two largest EBITDA producers, LOGCAP and Aspire Defence Services, go out 10-20 years more than today, respectively. The weighted average forward contract life of these top 10 is 10 years. I think you'd be pretty hard pressed to find that sort of duration across our peer group top to bottom.
I will add that the one contract that does end fairly soon is the Aspire Defence Capital Works program. That was always a short cycle program, this was planned, but I'll also add the project's been very successful, and we think it'll open up some new doors for us. All of this translates to above norm earnings and cash flow stability and visibility, it also means our business development function, very importantly, can spend a lot more time going after new business as opposed to preserving old business. Tallying up all of the contracts on hand today, the overall book of business plays out really well.
If you were to assume a constant 6% compounded annual growth in the revenue over this entire 5-year period here, the existing contracts we have today, plus options on those same contracts and the recompetes on those same contracts, would provide greater than 80% of the aggregate revenue coverage to deliver this curve of growth. Pretty amazing. Recompete risk, as many of you know, is very low near term. With a strong recompete track record, the amount of new business required each year is also relatively low, not even reaching 30% by 2024. As Byron and the panel discussed just moments ago, our robust muscle group of existing IDIQ contracts provides fertile ground to source some of this new business. Just as an example, on Pete's team in our engineering business, they booked over $500 million of brand-new work under existing IDIQ contracts during 2019.
You see there's quite a bit of firepower in that portfolio alone. This impressive waterfall means our BD team, business development, will be spending much more of their time pursuing new work. As you saw earlier, our pipeline of new business opportunities is now valued more than 10 times annualized revenue. That's healthy. Taken together, the outlook of the markets we serve, the deep trust that our customers have in us, by performing with them side by side for decades, the sustainability of our book of business, and the magnitude of the new business pipeline, all supports continued confidence in hitting our long-term growth targets of 6%-10%. We feel really good about that. Shifting gears to margins, our government business has delivered about 10% EBITDA margin for the past couple of years, and we're targeting upper single digits in the longer term.
That's relatively strong in the government sector, particularly with a pretty heavy mix of space and logistics involved. The left side of this pie chart gets to the root of this. First, we control our destiny in that we are prime and execute most of our work. Second, we have a healthy mix of international business, 22% on a revenue terms. All of our international work is on performance-based contracts, meaning they're either fixed price or time and material. These contracts offer more attractive margins, of course, provided you perform. In all candor, being here three years now, we have learned how to manage these types of contracts really well with strong program execution, commercial savvy, and so forth.
We've had consistently strong margins, not only in the raw performance, but by producing favorable write-ups as we realize performance incentives through the end of the contract terms. There's also a good chunk of performance-based contracts on the domestic side, bringing up the total performance-based mix to about 40%. With the other roughly 60% being very low risk, pure cost reimbursable mix, we find that this balance, coupled with strong program execution, really works well in producing stable yet attractive overall profitability metrics. Onto the bar chart there on the right, you see the proportional contribution of EBITDA dollars broken down between domestic, international, and non-recurring adjustments. You can see margins have been quite consistent in the 9%-10% range before considering the non-recurring items, you see that international provides a consistent and healthy boost here.
This is a favorable distinction for KBR's portfolio, the international mix. Looking forward, we obviously won't count on non-recurring adjustments in the future, but we certainly are counting on heavy mix of international remaining. We do expect some reduction in the international portion in the out years, which reflects the ramp down as planned of the Aspire Capital Works program. That ramp down completes in 2021, it's worth about one percentage point in margin. As a result, we see 9% roughly thereafter, hence the high single-digit target. We're sticking to that target today. Finishing up with this first section, this shows our conversion of profits to operating and free cash flow for our government business. The small yellow sliver is the CapEx related to this business. I think that clearly demonstrates the very low capital intensity that we have here.
I think this chart pretty much speaks for itself. Both operating and free cash flow conversion to income has consistently exceeded 100% every year. The free cash flow expected over all four years, including 2020 that we would expect, tallies up to about $1.3 billion. By the way, more than the amount used in the acquisitions to build this wonderful business that we've talked about today. This provides a very vivid picture of how we've been able to quickly de-lever from the transformative acquisitions we've made, improve our credit profile all along, lower our cost of capital, and just recently, hopefully you noticed, a pretty major increase to our dividend. With all of that as background, here's a simple view of how KBR's business in the government area stacks up to some of the peers that we greatly admire and work with every day.
This simply plots revenue on the horizontal axis and EBITDA margins on the vertical axis. With respect to scale, you can see we fit comfortably in the mid-tier here. However, on the margin side, you see we are clearly in the upper tier for all the reasons that I just covered. Looking deeper at the financial metrics here in the box using simple averages of the peers named here, you see performance in the last two years really stacks up well. KBR's organic growth, profit margins, and capital intensity all compare favorably to the averages. Cash flow is strong for both 2018 and 2019, registering above 100% both years, well above 100% of the average across those two. Taking this all in, our government business, in our view, delivered the following demonstratable attributes.
Healthy scale, a very attractive customer and contract type mix with access to multiple markets and funding streams that may be among the better in class. An extended contract life cycle that provides above norm visibility to future profit levels and cash flows. Finally, demonstrated overall financial performance in the upper tier across the relevant peer group. Wrapping it up, here's how KBR plots in terms of valuation. While granted KBR is not a pure play government business, we get that. The recent actions we have taken do warrant a valuation, in our view, at least more consistent with government valuations today. In 2020, our government business represents about 80% of the expected contribution profits of consolidated KBR. The other 20% is from a technology business, and as many of you know, that has an even better track record for growth.
It has 25% margins and is extremely capital efficient. We have aggressively de-risked our remaining business and put it in a position where it can be break-even at worst. There are no lump sum EPC contracts in our portfolio today, and with Stuart's earlier announcement, there will not be any in the future. It's perplexing to us to see this degree of valuation gap across the comparative peers here in the government space. Summing this all up, when you consider our scale, our beneficial diversification, the above norm visibility, and the attractive overall financial profile, the current valuation, at least in our view, suggests KBR isn't still quite fully understood, and that's why we're doing this today. Nonetheless, a pretty compelling investment story and opportunity given what we've said here today, and hopefully, we've been able to make a convincing case to you.
With that, thank you for your engagement and your interest in KBR. This is a story we absolutely love to tell. We're really proud of it. Now we'll move on to Q&A, hopefully answer your questions. Thanks.
Mark. Let's start with the real fun now with the Q&A. I ask that everyone use the Ask a Question window that you see on the screen. Since we have our entire Government Solutions leadership team here, I would ask that you get your particularly tough questions ready for them. We are running a little bit over schedule, we may run past 11:30 A.M. Eastern Time. If we have to drop off before we get to your question, please feel free to call or email me after the event, and we're happy to follow up. I've also seen a number of questions come through regarding Stuart's energy announcement pertaining to lump-sum EPC and blue-collar construction. Since this is a Government Solutions-focused event, we'd like to focus on questions pertaining to our government business.
We've taken note of your energy questions, and we'll have a head start as we prepare for our second quarter earnings call Q&A next month. In the meantime, I'll just quickly remind you of the following. We took all LNG EPC out of our original guidance for the year in February. While we do expect our energy business to be marginally profitable in 2020, we included a very conservative breakeven contribution to our adjusted EPS guidance, which we updated in April. We're continuing our evaluation, and we'll have a more fulsome update next month, so stay tuned. With that, we'll jump right into the Q&A. The first question that we have is for Byron and Andrew.
The question is, "If you could talk a little bit more about win rates and about why your win rates are going up." We saw the $1 billion of new work in 2019. The question is really, how sustainable are these win rates? Could they improve? Could you talk a little bit about your competitive advantage and maybe a little bit of color on some of those bigger items that are in the pipeline? Byron?
Sure. Love to answer that. I think our win rates have been very high, and I attribute it to several things. We've invested very heavily in our enterprise BD team. As we brought the different parts of the business together, we really took the best of the best. Whether that's our IDIQ center of excellence and the way we go to market or the large-scale enterprise, highly technical bids that Todd talked about, we really integrated that very well to capture those synergies. I think, as Pete mentioned in his initial discussion on the panel, the IDIQs, because we are going to the customer with a solution and writing a white paper and working with them on their needs, we typically have an advantage position there. That's new business. Mark said we had over $500 million in 2019 just through that new business IDIQs.
Our wins are based around fundamental good performance on current contracts, good past performance by our operators, that's just continued to kind of drive our growth. Andrew, do you want to add any comments to what you kind of see going forward in your pipeline for the international business?
Let me add a little bit. Yes. I think over the last two or three years, we've diversified the business, we worked our strategy, that's starting to bear fruit. We're in a target-rich environment, but we're picking our opportunities very carefully. I think some of the fruit that landed quite nicely is the contract at Sellafield that we won last year, NTSP, which we booked earlier this year, as Byron, you mentioned earlier, the MOD Middle East opportunity. I think we've got some really good opportunities ahead of us. We're in a resilient market. We're seeing sort of U.K. defense expenditure increasing year-on-year, 2.3%, 2020 versus 2019. 9.6% real terms over the last four years. We're in a positive market.
Yeah. Alison, just to kind of answer, is it sustainable? I think it is. I think we've got good position, good customer intimacy, good book of contracts. I think we have the best BD team there is. We've really spent a lot of time with them. The MOSSI work that we just won from NASA just a week or so ago, that's the takeaway work. That's new work, that's expansion, just great effort all around. These are really highly technical work. We're not winning on low cost. These are best value awards, we were not the lowest price on MOSSI, we were not the lowest price on LOGCAP V . We are winning because we have capabilities, that's really what's driving the win rate.
Great. The next question is for Todd. The question is, "As U.S. space focus switches to more of a hybrid approach where private companies such as SpaceX are managing more launches, how does that impact KBR's space business, and how does the change impact KBR's market share? Is it an additional growth driver?
I think as commercial space operations come online, I think we're seeing growth on our existing NASA contracts. That's additional work that's tied to the work that NASA does. We also see it in that we support the commercial efforts. We see that, for example, our private astronaut training, much of that work comes through NASA contracts, so we see that as progressive growth. As we announced earlier this year, and I mentioned in the roundtable, we're the first and the only company with the authority to train those astronauts in NASA facilities. We're also seeing as the OEMs move into the lunar region, they are coming to us to add expertise to their offerings. As I say, we have very unique domain expertise.
We see the independent new players come out, some of the SpaceXs and the Blue Origins that need our deep domain expertise in the work that we do. That's relatively small dollars now, it positions us in that market very well for the future, if it's a go, we see that continue to expand.
Great. The next question that's coming in is for Ella. Could you provide an update on LOGCAP transition, the status of the protest, also, maybe with Andrew, talk a little bit about Middle East outlook and troop levels?
Sure. We've received some notices to proceed. Especially in NORTHCOM, we're starting transition with NORTHCOM. What's great about that is you have the National Training Center, which is a great platform where they train the military before they go out on deployment. Long-term synergy there with that part of the contract. We're also transitioning in EUCOM, we're starting to transition there to ourselves, that's great. That's easier to do than transitioning to others. For the Middle East, that's kind of on hold with COVID-19 right now. We all understand that there'll be an update in August, September timeframe on the transition of that area, depending on what's happening with COVID-19. It's a great opportunity. We're always giving task orders for new work on NORTHCOM to support what Byron mentioned, Warp Speed.
Going out there and providing things like biomedical freezers and stuff as the vaccines and different things come online, as they get positioned for that. For the Middle East, the troop counts, we were probably been right positioning at about 8,000 in Afghanistan, depending on what's going on with the marketplace. I'd say we'll have to see what's happening there, as time goes on. It's in alignment with what we've been forecasting.
Just to add to that, from my point of view, we're out in the Middle East, supporting the theaters in the same way that Ella is. That's a relatively small part of this business now. We're also at some of the steady bases, supporting the British military, for instance, in Oman, in Bahrain. We see that as a constant. We expect that part of the business to endure.
Great. The next question that's coming in is for Rob in Australia. Good evening, Rob. APAC has been the fastest growing part of the business over the last few years. Which pieces of the business do you expect to grow the fastest that will affect margins? Also for Andrew, in combination with that and in connection with the growth in APAC, how are we looking to replace the Aspire Capital Works that will be stopping in 2021 or that we will be successfully completing in 2021? Rob?
Hopefully you can hear me all right. It's breaking up a little bit at the moment for me. In terms of what we expect to see as a fast-growing business or part of the business, really in our mission planning area and the mission support area. That has some very significant new opportunities. Certainly over the course of the next two years, we'd expect to see that business grow significantly. That'll have a huge positive effect on our margins. That work is conducted in a classified environment. It's certainly significant barriers to competition for the work that we do. We see real potential in that area.
If I pick up on the Aspire point, it is no surprise the end of the construction work has been well known for a period of time, and that is a core part of our strategy, has been to focus on what replaces it. Mark mentioned the reduction in margin being about one percentage point. But we have been looking at what the credentials are that Aspire provides us, and there is great capability that we have been able to leverage since taking over the 100% of the constructions and operations maintenance back in 2018. And right now in the U.K. market, that is really helping us because there is the opportunity that we are now engaged in bidding for some U.K.-based military support contracts, which the Aspire model has given us great— improved our opportunity.
Just to put some scale around the opportunities that we are looking at, there is probably $5 billion or $6 billion worth of revenue associated with projects, both for the military estate. There is also investment in the U.K. naval ports that we anticipate over the coming years. I mentioned NTSP, that is about the upgrade of one of those ports. But we are also keen to look at the investment opportunities that sit around the other two U.K. ports. I think we are well positioned. We are in good markets, to make up the shortfall that we will see as Aspire Defence Capital Works concludes.
Okay, the next question is for Stuart. Stuart, could you provide some commentary on budget outlook and our view of as the government is shifting priorities and in response to pandemic, maybe some commentary around budget dynamics?
Sure. Thanks, Alison. Yeah. Interesting, we tried to cover that off as we went through, really my opening remarks. I think Byron covered it, and I think we also covered it in the roundtable, and Mark had a go at it as well. I think there is a number of questions we have had on the road on this topic, as you can imagine. I think first and foremost, I think where we actually do what we do in terms of that tip of the spear and mission critical and operational focus means the stickiness of what we do. And it is things that matter, as Byron said, they really matter. And as a consequence of that, we are probably less impacted by budget volatility, than you have seen perhaps of others. And we have certainly seen that coming through as we have run through the COVID-19 piece in the last little while.
In terms of looking forward, we do have the differentiation with, I guess, long-term contracts, particularly international, that really underpin the future of the business. Mark showed you the top 10 contracts as well, which we'll run through, enduring way past our sort of our guidance today of 2022 in terms of our targets to go well beyond that, as you've seen. Again, those programs tend to jumping up, as everyone's well aware, but I think where we're positioned really protects us from a lot of that volatility.
Okay. The next question that's coming in is for Byron and Andrew. Gentlemen, if you could speak a little bit about the new wins, from 2019 and recently in 2020, and the profile of how you expect those new wins to impact our growth targets over the period.
Yeah, sure. We had really strong takeaways in 2019, as we mentioned, and I'll let Andrew can talk about his couple that were international. We talked a lot about the POTFF program, which it took a while to ramp that up last year as we came on. That was kind of second half of the year. It's pretty well fully staffed right now. It has some, we believe, some more upside to go on it from a revenue standpoint. We're sitting at almost 500 employees supporting the special operations at 29 locations around the world. Even during this COVID crisis, we've been hiring. It's been great to see this virtual environment we're using here with the webinar, and we're doing the same thing in our recruiting and hiring. We've talked a lot about ROCK II that came on last year.
Again, that kind of came on middle of the, I guess that was last August for sure of last year. That's going to get a full year this year. That's the launch support we've been doing that Todd talked about. Pete just seems that we have a joke going on, like every Friday, Pete wins something. His IDIQ business just continues to push out a $50 million win for something at AFRL, a $50 million win for a new bomber effort, a $50 million win. He's just constantly, his IDIQ programs just continue to be a growth engine for us, and that's where a lot of the new work comes from.
We've got $12 billion, as we said, in the next 24 months in the pipeline, and many of those are already submitted, meaning that they're under evaluation with the customers to be awarded or about to be submitted in the next couple of months. We just have what we see as good visibility in the profile of those. It takes them 30, 90 days to kind of ramp up. Then our ops teams, like Ella said, get in there and just try to continue to expand them, grow margin, grow scale over the long term. That's usually the profile of it. A few months to ramp up before you support operations. Andrew, you want to talk a little bit about your two big wins you had in 2019?
Sure. Let me pick up on Sellafield. I mean, we're 12 months into a 20-year relationship on that program of work. As I mentioned, the Sellafield site, it's the U.K.'s nuclear repository. The program is really about cleaning up the hazard. That's not optional. The U.K. government's got a 60-year program actually to remediate the site. It'll take that long. Currently, we're sort of looking at something like $6 billion of capital programs to be delivered over the next five years. I anticipate that as we get further into this program, our team will grow, and this will become a more material part of my business as we go forward. If I touch on NTSP, Nuclear Technical Support Provider, this we flagged up earlier this year.
It's a great win supporting the U.K. Royal Navy, a customer that we've not directly worked for over a decade, I think, the U.K. nuclear deterrent. With the new sort of Dreadnought submarines which are currently in development, to anticipate the investment will increase over the coming years. It's great to be at the heart of that.
Great. The next question is for Stuart and Mark. Is your 6%-10% organic growth CAGR target overly conservative with that amount of work in sight?
That's always a good question. It's one of those things, if you're not overly conservative, you get murdered. We have a track record of setting our stall out, and we met or exceeded guidance for the last 13 quarters, as everyone knows. I think we are prudent. I think that we are rightfully conservative, particularly in a volatile world. We stick to that guidance. It would be great to do a bit better than that, and I'm sure we'll get our just rewards when we Is there an opportunity to do better? Of course, there is. We run a probabilistic model, as you know. We build our five-year models looking at goes and gets and scale and level of competition, we build all that in.
If you win more than your fair share, I have to say, our track record and the win rates that we've had are probably a bit above our fair share. If we continue with that, then we can certainly get to the upper ends of those range or even above it.
I'll add to that as I agree. I mean, I'd love to see us being conservative here on this front. As Stuart mentioned, we have a good track record going on. We have plenty of opportunities. The team's doing great, as we've said consistently today. We've also been very measured and prudent and pretty conservative as we've completed this transformation, put the team together, and made sure we can do what we say we're going to do, and we're going to continue with that ethos in our company and take it one day at a time, if you will, and be careful, but be measured, but also be invested in the marketplace. I think the team's done a really good job at that. I couldn't be more proud of the integration and the synergies we see with bringing all of this together.
The organic growth we saw earlier is stunning.
Great return on invested capital when we can grow organically after putting all the pieces together, and so that'll be a big part of our focus going forward.
Great. Sticking with Mark and Stuart, several questions coming in related to appetite for M&A, both in terms of our own appetite, dynamics of the market that we're seeing, and potential capabilities that we might be looking to enhance.
I'm going to let Mark answer the specifics around M&A, but what I would say is that we don't need to do it. We've got an amazing capability breadth. We've got a portfolio you've learned about today that's got a pipeline of opportunity that will continue into the future to give us, at least for the foreseeable future, very strong organic growth industry right up there. We've been at the top for the last, not one year, but two years, and you've seen and met the team today that I think they can deliver more. That's the best use, as you know, we all know, of working capital. I think we're in the right zone there. We're in the right vectors.
In terms of what's out there, we continue to kiss frogs, as I've said many times, and we've done well acquisitively, but we'll keep true to our ethos of looking for revenue synergy and not banking on cost synergy as a way to add value. Mark, over to you in terms of capacity and where we might want to spend our money.
I totally agree with that premise that we don't have to do anything. We have a great business today. We can grow organically, deliver great returns, et cetera. That is a key takeaway, as Stuart said. M&A was a big part of our path to get here and to achieve this scale and to achieve these outcomes we've heard here today. We recognize that. We think we're pretty good at M&A, and we take every opportunity seriously that comes across the desk. I would say that if you look at the capital structure today, after having done quite a bit of M&A to achieve the scale we talked about today, we've improved our balance sheet tremendously. We have improved our discipline relative to working capital. Our DSOs have come down.
We've de-levered each time we have conducted a phase of M&A in a very disciplined way. We've demonstrated to the market the ability to integrate, reward the people that are coming aboard the KBR team with challenging work. I think reward our investors with good performance and good cash flow and a good balance sheet to boot. Through the last couple of years, with the credit rating improving and so forth, we have firepower now to go at it again, should we find opportunities that are compelling. We'll navigate that one at a time and compare the return characteristics of what those might offer to us versus our other deployment opportunities, which we've talked about. That can be returning cash to shareholders. We've demonstrated that before as well.
We have a very measured way of balancing those two, and we will make the best decisions for all of our stakeholders, our employees, our customers, and our shareholders going forward.
I think just to finish on that, the areas of focus, and we've talked about this often, are really where our strategic vectors are. It's really around space exploitation, particularly military space. It would be things like intelligence, it would be things like human health performance and international because of the margins we achieve in that domain.
Great. Todd, the next question is for you, and it's related to the MOSSI announcement that we made yesterday. Congratulations on that win. Can you talk a little bit about the program, and could you talk a bit about how you expect that to transition in terms of revenue, backlog bookings, and how that will actually impact results?
Yeah. That program is similar to the work we do on the International Space Station. It includes the operations of all of the payloads on the International Space Station as well. It includes a $587 million announced cost plus. There's also an IDIQ component that was not included in the numbers that allows for continuing progressive engagement as we bring solutions to our customers. It's a good contract, and it helps to complete our portfolio of space operations in the human space flight world. You put that together with our GSMO-3 contract at Goddard, where we do robotic space operations, and we fly a Landsat mission for USGS, it really does give you a nice full domain expertise and domain domination.
Great. Okay, the next question is about technology, I'm going to ask Vernon and Byron to weigh in first and others as you like. With regard to new technology advancements to disrupt OEMs, can you expand a bit on that comment? How are OEMs trying to enhance their own platform management skills, and how do we play into that area? Maybe also Pete. Vernon, could you start?
Yeah. Thanks, Alison. Sure. Our approach is something that we've talked through during the panel, and Byron alluded to it as well, and it's built around a couple of factors. First is customer intimacy and domain expertise, we preserve what I'll call an honest broker relationship with our customers. It's our priority to be focused on their problems, not building products that we want to sell to the government. That gives us, I think, an advantage in some ways to sit next to the customer, provide them trusted advice. In terms of what solutions or what technologies to invest in without pushing our own preference. It's a data-driven approach. It allows us to be agile and pivot to new problems as they emerge. It allows us to look at the marketplace for the best option.
I think that's how we position ourselves, and it is, I would say, a very successful model. Byron, anything to add?
No, I think you hit the spot on there. I think we like the term agility. We're following our customers over time as their missions change and evolve. As we see new technologies, an OEM has had to invest very heavily in their research and development in their product line, so they have a vested interest in making sure that becomes some program of record. Whereas we can partner with OEMs. We have great relationships with many of the top-tier OEMs to bring in specific expertise or mission solutions. We are bringing real solutions alongside the OEMs. We have partnerships with non-traditionals. We're a, I can't remember the code name. Vernon, you have to tell me, for Amazon Web Services, and we're a premier partner with them, and one of the top levels for Amazon Web Services.
We're helping our customers think about how do they manage their data? What is their data strategy? Do they move to the cloud? Is that cloud secure? We're not limited to just AWS, we're also in partnerships with Microsoft and Google and others. We are able to say, what's the best technology, the best OEM for your need, and give them that advice. We help broker that between the OEM and the government to get to the right answer for the mission.
Great. The next question is for Stuart and Mark, and it is, it seems that some of our GS peers have experienced a bit more disruption in their businesses due to COVID, social distancing. Can you provide an update on what you're seeing, how is it that our business has been a bit more insulated? Have we seen the disruptions that we have seen? Have we seen them easing?
I think we presented at, in fact, I know we presented because we presented it at the Q1 earnings, that really the resilience of our business and the fact our government customers have really leaned forward to help us, really, and not just in the U.S., but globally. That has continued up until today, and we don't see it changing. In terms of the disruption from COVID-19, as I explained earlier, really our differentiation really comes to the fact that we are that tip of the spear. We're really in the operational side. We're doing things that really, really matter and that are compelling. As a consequence of that, those missions have continued. We've seen very little disruption.
We did announce and we built it into our guidance that the big exercises in Europe with NATO were canceled, obviously, under the EUCOM piece of work in LOGCAP 4. That's been built in. That's really the only real disruption. I think others who have SCIFs and classified work, and they can't really get into those areas or have been prevented from getting into those areas are probably more impacted than we are. Really, rather than talk about them, I'd rather talk about us, and really, I think the upside for us in this really is the sort of work we do, the sort of differentiation we have, the mission-critical elements to our business. We've talked about it, and I keep talking about the proof of the pudding is in the eating.
Here it is, it's just clearly demonstrating through actually returns to shareholders, what we've been saying for a number of months and years. Mark?
I would add to that it's about making the best of a situation and being opportunistic. As hopefully we're demonstrating today, embracing new technology to be successful in this new environment. With our global presence, we had, as we said in our Q4 call, actually, a heads-up about the oncoming possible challenges with the epidemic and to manage ahead of that problem. We built an IT infrastructure that allows us to do stuff like this. It allows Byron. Byron was telling us the other day that his access to the generals and the military leaders has improved as a result of this situation. They are more amenable to talk over the phone or video when back in the previous life, they were full of all these meetings and customs and customary things and so forth. Access, if you're opportunistic, can actually be improved.
We already have success in China as that has opened up by leaning forward, both from a technology perspective and from the customer relationships we've built over decades and having the comfort to get in front of them, virtually or otherwise, and have an impact, big impact, right? We're doing that. It's all in. It's the amalgamation of the years of relationships we've had and being savvy, technically in this environment today to lean forward, as we like to say here, and continue thinking about ideas and how we can solve their problems. I think it's coming through in the numbers pretty well.
Yeah. Alison, if you don't mind me jumping in on top of that. Stuart Bradie rolled out in the last earnings call our reimagine effort, right? Remember, we're a people business, 18,000 Government Solutions employees. It's not just about that customer engagement, it's taking care of our people, making them feel safe, making them feel valued, and showing them that we're rethinking how we're going to work in the future so that we become that employer of choice, so that we can attract and retain the best talent anywhere, the most diverse thoughts and minds and ideas, and that's what we deliver to our customers. I actually think this has been
A milestone event in KBR and what's really going to change us for the future. I'm really excited about embracing the amount of disruption and positive and opportunity that's come. It's really happening.
Well said.
A great segue to the last question, which is, with the success that we've had with this event today, what year will we be hosting our investor meeting in space or from the moon? Ella, Pete, Todd. We'll need Ella to lead the way, definitely.
We will.
2024.
2024. Todd's on record for 2024. That's great. All right, that wraps up the Q&A. With that, I'm going to pass it back to Stuart, who will have some closing comments. Thank you all for your active engagement and the great questions that have come in. Now back to you, Stuart.
Thanks, Alison. We're running a little bit over, I'll keep my closing remarks brief. Firstly, thank you for listening and, of course, thank you for the questions. I think from the questions, it feels like we achieved the objective of giving you more color and an insight to our broad and across our portfolio. It would be remiss if I didn't thank Alison for pulling this together and keeping us on track. I think the phrase herding cats doesn't really come close, well done, Alison, for that. I think the key takeaways I presented up front, most of you have probably forgotten what they are by now. In truth, I think the team covered each. They really demonstrated, I think, real examples of the how and the why. I think giving real examples is, of course, it's just more real and thus more compelling.
Just on being real, I think the video that we showed after my opening remarks was actual footage of KBR and KBR people across the world and above the world. There were no canned images there. Really 24/7 look at KBR's broad capability and geographical reach. Really, to close, with the announcements we made today and the presentations you've seen today, I believe we have demonstrated KBR has fully transformed into a government technology and high-end solutions company. Our risk profile and our financial characteristics are really fully aligned and shape up really well against our government services peers, and Mark showed you that graphically. You've met the leadership today. You've seen their passion, their sense of team, and you've really broadened your understanding of what we do and who we do it for.
Hopefully, we've demonstrated why we're different, why we're resilient, and you've seen the financial metrics and the comparison with our peers. We've reaffirmed our guidance. We've demonstrated the cash generation capability of this business in the past, right now, and going forward. This is all backed up with what we've done, what we've won, and what we're bidding. We've also showcased where we're going. In short, you have seen the investment opportunity. Thank you