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Navy Awards Nearly $1B in Construction Contracts

Monday, February 8, 2021

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The Naval Facilities Engineering Systems Command Pacific recently awarded seven companies a $990 million, five-year construction contract for projects primarily located in Guam and other various sites within the NAVFAC Pacific area of operations.

The contract supports the Defense Policy Review Initiative and is funded by the Government of Japan as part of the International Agreement between the United States and Japan. In the agreement, the U.S. and Japan decided to transfer multiple functions of the III Marine Expeditionary Force from the later country to Guam as part of the DPRI.

“We are especially pleased to be awarding this MACC for the GoJ-funded construction projects on Guam,” said NAVFAC Pacific Guam Program Management Office Director Will Boudra. “With multiple contractors and a capacity of $990 million in new contract awards over the next five years, this MACC adds robust capacity to our acquisition toolbox in support of the DPRI construction program.”

According to the Defense Visual Information Distribution Service, the scope of work for the projects involves, but is not limited to, work on administrative facilities, barracks/dormitories, dining facilities, ranges, educational facilities, training facilities, roads, streets, site utilities/infrastructure and other base development facilities.

“These contract awards are another pivotal step as we continue to build MCBCB,” said MCBCB Commanding Officer Col. Bradley Magrath. “The J-011 base administration project will be the new command headquarters for Camp Blaz and we are very excited about this project and our progress with the establishment of Camp Blaz. We would like to thank our team members and partners as we continue to ensure a responsible construction process through extensive joint efforts.”

The first of the seven companies being awarded is Hensel Phelps-Shimizu Joint Venture of Honolulu, Hawaii. In Hensel’s $53.9 million initial task order, the company will construct a base administration building on Marine Corps Base Camp Blaz (MCBCB) in Guam. Work will be performed in Guam and is expected to be completed by May 2023.

The other six companies being awarded an MACC contract include:

  • Aptim Construction JV, LLC of Alexandria, Virginia;
  • Black Construction–Tutor Perini JV of Harmon, Guam;
  • Caddell-Nan a Joint Venture of Montgomery, Alabama;
  • Core Tech-HDCC-Kajima, LLC of Tamuning, Guam;
  • CWI-Weitz JV of McLean, Virginia; and
  • Gilbane SMCC ECC LLC of Concord, California.

The majority of work will be performed in Guam but may include other areas under the cognizance of NAVFAC Pacific, with an expected completion date of January 2026.

“Over the five-year life of this MACC, significant funding will flow into the Guam business economy,” said Boudra. “The active participation of the Guam engineering and architectural design firms, construction companies and suppliers is critical to the success of the build-up in advance of the arrival of U.S. Marine Corps operational units on Guam.”

Other Navy Initiatives

Back in November, the U.S. Naval Surface Warfare Center, Port Heuneme Division (NSWC PHD) in Port Heuneme, California, announced the launch of “Rust-A-Thon,” a new research competition aimed at mitigating and controlling corrosion aboard U.S. Navy ships and vessels.

The contest is expected to consider input from more than five universities and companies doing anticorrosion research as part of their participation in the competition. According to Popular Mechanics, rust typically costs the U.S. Navy about $3 billion a year, or roughly $10.2 million per ship in its fleet of over 293.

To address these issues, Kvryan reports that he’s teamed up with PHD’s Fathomwerx Lab, Camarillo-based Matter Labs and Naval Surface Warfare Center, Carderock Division for the innovative competition.

Over the course of the competition, different coatings will be tested on performance in simulated oceanic conditions that replicate what Naval ships experience. Testing will involve conducting the ASTM International's B117 salt fog testing, which according to Jay Ong, head of the corrosion and coatings engineering branch for NSWC CD, will provide information on how well the coated metals resist corrosion.

In the next few months, Kvryan intends to have final test results from Rust-A-Thon and will explain to participants how their products performed. Following the commencement of the competition, Kvryan and his group will consider what product could become a potential solution for protecting Navy ships from corrosion.

Prior to that, in September, the Naval Facilities Engineering Command Atlantic, located in Norfolk, Virginia, issued a Request for Proposals for an eight-year, Indefinite Delivery/Indefinite Quantity Global Contingency Construction Multiple Award Contract. The contract is worth up to $5 billion in foreign and domestic construction projects.

The contract will primarily provide work including supervision, equipment, materials, labor, travel and engineering services in support of natural disaster response, humanitarian efforts, conflict, emergent mission critical requirements or similar projects.

There could also be incidental construction efforts required for military exercises. The work is expected to primarily be outside the United States.

Approximately four contracts will be awarded with a base year and seven one-year options with the combined value of $5 billion. The minimum guarantee for each contract is $25,000 over the life of the contract. Task orders will be either cost-plus–award-fee or firm-fixed-price orders. There will be no yearly or per contractor limit on task order awards.

According to Bloomberg, these contracts would replace incumbent contracts that were awarded in March 2019 to six companies with a combined ceiling value of about $1 billion. Although the six companies received the minimum $25,000 award, only four (Illuminate Buyer LLC, Environmental Chemical Corp., Tutor Perini Corp. and Jacobs Engineering Group Inc.) have received more than that initial amount.

Those contracts run through March 2024 so additional obligations will continue being disbursed.

   

Tagged categories: AS; Asia Pacific; Awards and honors; Contractors; Contracts; Government; NA; North America; Program/Project Management; Project Management; U.S. Navy; Upcoming projects

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