Kristen Smith 
KBR’s mission technology solutions segment has unveiled a strategy to scale digital engineering capabilities for the U.S. military through investments in digital labs and model-based environments.
The company said Tuesday the initiative aims to modernize defense system development and sustainment, accelerating the Department of War’s response to emerging threats and evolving technology requirements.
Federal leaders advancing modernization efforts will convene at the 2026 Digital Transformation Summit, hosted by the Potomac Officers Club on April 22. The event will spotlight evolving strategies in artificial intelligence, cybersecurity, enterprise IT and user experience, offering attendees insight into how agencies are accelerating mission delivery through technology innovation and public-private collaboration. Register now!
How Will KBR Expand Its Digital Engineering Footprint?
The effort centers on expanding digital lab infrastructure nationwide to help military programs assess their digital maturity and transition away from manual workflows. The environments are designed to support the modernization of ground systems, aircraft and sensors by enabling teams to test concepts, refine designs and assess performance in virtual settings before moving into production or fielding.
The company is using digital twin and model-based systems engineering approaches to create integrated simulations that combine software development, system architecture design and rapid prototyping. KBR said those tools allow program offices to analyze trade-offs, model mission scenarios and generate life cycle data that can inform operations and maintenance decisions after deployment.
“The DoW is emphasizing speed in modernization of warfighting capabilities,” said Mark Kavanaugh, KBR’s president of defense, intel and space.
“KBR’s deep expertise simulating missions in a virtual environment allows the department to save money and time by first digitizing scenarios in a lab, gaining key insights for decision advantage,” he continued.
KBR’s Alabama team has applied virtual prototyping methods to air and missile defense efforts such as the Integrated Battle Command System and the Paladin artillery system, as well as aircraft platforms, including the F/A-18, Blackhawk and Chinook.
How Does the Initiative Align With MTS’ Defense Portfolio?
The digital engineering push comes as KBR prepares to spin off its MTS segment. Expected by mid-to-late 2026, the spin-off will create two standalone entities: one focused on government and national security missions through MTS, and a separate company centered on KBR’s sustainable technology solutions business.
KBR said future companies will continue to focus on mission-critical capabilities supporting defense and space priorities. Recent contract activity reflects that positioning. In February, KBR secured a potential $149 million Air Force system modernization contract under the Acquisition, Data, Engineering, Digital, Decision Integration and Software program and received $103 million in Space Force task orders supporting workforce readiness and data-driven decision-making initiatives.
In January, the company confirmed its selection for the Missile Defense Agency’s Scalable Homeland Innovative Enterprise Layered Defense contract, a multiple-award IDIQ vehicle with a ceiling value of $151 billion. Earlier, it had also secured a $117 million follow-on contract supporting F/A-18 foreign military sales programs.
