The project, which is already funded by government of Japan Mamizu funds, has been extended for 180 days. The solicitation period expired Tuesday, Aug. 9.
Bordallo spoke with Under Secretary of the Navy Robert O. Work about the suspension of the award for this contract.
“Despite the fact that the Navy has assured me that they are committed to the buildup on Guam, I remain concerned about the Navy’s decision to postpone awarding some Japanese-funded buildup contracts,” said Bordallo.
The extended time will enable re-evaluation of the project, to ensure this project is planned and executed in the most cost-effective and efficient manner consistent with anticipated medical requirements of the military and their family members on Guam, according to the Navy’s website.
Bordallo said the decision “sends a mixed message about the future of the buildup and is inconsistent with the intent of the Japanese government to spend this money in preparation of the relocation of Marines from Okinawa to Guam.”
Bordallo also said the decision contradicts agreements made during last month’s “2+2” meeting, during which the Obama administration reaffirmed the United States’ commitment to the terms of the Marine realignment.
“I hope in the near future, the Navy will move on funds and projects related to the buildup that have already been approved. Further, I hope the Navy and I will get a chance to meet with the new Secretary of Defense, Leon Panetta, to understand DOD’s position regarding the buildup going forward.”
Detrimental
Bordallo described the Navy’s decision as “detrimental” to Guam’s economy and to local businesses.
“I strongly oppose this decision and I believe that the Navy should utilize all available funds to ensure that the buildup progresses in a timely manner.”
The project is for the construction of an outpatient medical clinic at Apra Harbor to support the needs of the military and their dependents.
The facility would include spaces for administration, medical, mental health, urgent care and dental clinics, preventive medicine, ancillary services and required support functions, according to the Navy’s website.
Sen. Judi Guthertz, oversight chairwoman of the military buildup, said: “I think obviously, realism is at play here. Just like everybody else in these difficult economic times, the Navy is re-evaluating the size of the new clinic.”
Guthertz said in light of the fact that a new Naval Hospital is also being built and the distance between the clinic and hospital are not far away geographically, “they probably don’t have to spend all that much money on the clinic.”
Japan has committed $6.09 billion to the cost of the buildup, $833.8 million of which has already been received by the U.S. Another $420 million was approved on March 29 in Japan’s budget. The U.S. has committed $4 billion, but the Government Accountability Office estimated the Guam buildup will cost $23.9 billion over the next 10 years.
