Vol. 35 No.39
       ©2007 Marianas Variety
Wednesday, May 9, 2007 www.mvariety.com
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Guam military contracts now rolling in

By Gerardo R. Partido
Variety News Staff

EVEN with a couple of years to go before the actual relocation of 8,000 Marines to Guam, military construction contracts on island are now on the upswing in preparation not only for the Marines but also for other deployments ordered by the Pentagon.
With not just the Navy but also the Air Force carrying out major expansion on Guam, U.S. Department of Defense acquisition, purchasing, and procurements are now increasing, benefiting a number of local contractors and sub-contractors.
For the past three months alone, the Pentagon announced large multi-million dollar contract awards for Guam military construction including the construction of an RQ-4 Global Hawk UAV complex announced only a few days ago.
Black Construction won the $42 million firm-fixed-price contract for the construction of an aircraft maintenance and operations complex at Andersen Air Force Base for RQ-4 Global Hawk High Altitude, Long Endurance UAVs. Work is expected to be completed May 2009.
According to the Pentagon, the 2006 agreement between the United States and Japan to shift 8,000 U.S. Marines from bases in Japan to Guam by 2014 is not the only military expansion that will take place on island.
Because of the Pentagon’s new strategy of transforming Guam into the “tip of the spear” of the U.S. military’s presence in the region, more military deployments are expected to take place in the island.
Recognizing Guam’s strategic value, the U.S. Congress authorized $193 million in military construction funds for Guam in the fiscal year 2007 National Defense Authorization Act, a $31 million increase over 2006 funding.
According to Congresswoman Madeleine Z. Bordallo, Guam is likely to see between $400 million and $1 billion in military construction each year for a period of six to 10 years.
All this spending is expected to boost the island’s economy and provide a boost to Guam contractors and subcontractors. As one DoD official said recently, “the military expansion on Guam is now in earnest.”
In addition to the Global Hawk project, the following are some of the multi-million dollar contracts announced by the DoD for Guam military construction during the past three months:
* On April 25, small business qualifier Core Tech International Corp. in Tamuning received a $10 million firm-fixed-price contract for the FY 2007 Military Construction Upgrade Northwest Field Infrastructure, Phase I project at Andersen Air Force Base. Core Tech International Corp. is a small, woman-owned, Section 8(a), certified Small Disadvantaged Business, certified HUBZone firm. The scope of work includes the design and construction of upgrades to the existing water, wastewater, and electrical infrastructure systems at Northwest Field. Work will be performed in Guam on Andersen Air Force Base and is expected to be completed by November 2008;
* On April 17, Watts Constructors LLC in Honolulu, Hawaii received $42.7 million under previously awarded firm-fixed-price design/build contract to exercise Option 1 (Phase II) to replace typhoon-damaged homes at North Tipalao. The current total contract amount after exercise of this option will be $78.6 million. The Naval Facilities Engineering Command, Marianas in Guam issued the contracts and work is expected to be completed by May 2009;
* On April 9, Black Construction Corp. in Barrigada received a $42.1 million firm-fixed-price contract for replacement of 61 housing units at Old Apra, Naval Base, Guam. The work to be performed provides for the design, demolition, removal and disposal, and reconstruction of existing housing units and supporting facilities. The units consist of duplex housing units (28 total units) and 33 four-bedroom officer single detached housing units and supporting facilities. Work will be performed in Santa Rita and is expected to be completed by May 2009; and
* On March 29, GFS Group in Hagatna received an estimated $7.5 million modification to previously awarded firm-fixed-price, indefinite-quantity and time and material contract to exercise an option for housing operations and maintenance services for various Naval installations on Guam.
In addition, some Guam-related task orders are likely to be issued under existing contract vehicles and may not be reported individually.