DoD's $167M Andersen AFB Urban Combat Training Contract Awarded to CORE TECH-HDCC-KAJIMA LLC
Contract Overview
Contract Amount: $167,279,010 ($167.3M)
Contractor: Core Tech-Hdcc-Kajima LLC
Awarding Agency: Department of Defense
Start Date: 2019-01-23
End Date: 2025-02-14
Contract Duration: 2,214 days
Daily Burn Rate: $75.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF JFY014 J-755, URBAN COMBAT TRAINING, ANDERSEN AIR FORCE BASE, JOINT REGION MARIANAS, GUAM
Place of Performance
Location: YIGO, GUAM County, GUAM, 96929
Plain-Language Summary
Department of Defense obligated $167.3 million to CORE TECH-HDCC-KAJIMA LLC for work described as: IGF::OT::IGF JFY014 J-755, URBAN COMBAT TRAINING, ANDERSEN AIR FORCE BASE, JOINT REGION MARIANAS, GUAM Key points: 1. The contract is for urban combat training facilities at Andersen Air Force Base. 2. CORE TECH-HDCC-KAJIMA LLC secured the award. 3. The contract has a firm fixed price structure. 4. This is a significant investment in military readiness infrastructure in the Pacific region.
Value Assessment
Rating: good
The contract value of $167M appears reasonable for a large-scale construction project of this nature, especially considering the location and specialized requirements for military training facilities. Benchmarking against similar DoD construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for this critical military infrastructure project.
Public Impact
Enhances military readiness and training capabilities for U.S. forces in the Indo-Pacific. Supports infrastructure development on Guam, a key strategic location. Potential for local economic impact through subcontracting and employment opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in remote locations.
- Construction delays due to weather or logistical challenges.
- Ensuring compliance with environmental regulations in Guam.
Positive Signals
- Firm fixed price contract limits cost uncertainty.
- Awarded through full and open competition.
- Strategic importance of the training facility.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense is substantial, driven by the need for modern and specialized facilities to support military operations and training globally.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Future contracts related to this project should explore opportunities for small business involvement.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including site inspections and progress reporting, should be in place to ensure timely and quality completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded to a single entity, potentially limiting future competition for related services.
- Construction projects of this scale are susceptible to unforeseen cost increases.
- Geographic remoteness of Guam may impact supply chain efficiency and costs.
- Lack of explicit small business participation noted in the award data.
Tags
commercial-and-institutional-building-co, department-of-defense, gu, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $167.3 million to CORE TECH-HDCC-KAJIMA LLC. IGF::OT::IGF JFY014 J-755, URBAN COMBAT TRAINING, ANDERSEN AIR FORCE BASE, JOINT REGION MARIANAS, GUAM
Who is the contractor on this award?
The obligated recipient is CORE TECH-HDCC-KAJIMA LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $167.3 million.
What is the period of performance?
Start: 2019-01-23. End: 2025-02-14.
What is the projected impact of this urban combat training facility on operational readiness for forces stationed in or rotating through Guam?
The facility is expected to significantly enhance operational readiness by providing realistic training environments for urban combat scenarios. This allows military personnel to practice tactics, techniques, and procedures in a controlled yet immersive setting, improving their preparedness for complex real-world missions in densely populated areas. This investment directly supports the strategic posture in the Indo-Pacific.
What are the primary risks associated with constructing specialized military training facilities in Guam, and how are they being mitigated?
Key risks include logistical challenges due to Guam's remote location, potential for weather-related delays (typhoons), and the need for specialized construction expertise. Mitigation likely involves robust supply chain management, detailed scheduling with weather contingencies, and careful selection of contractors with proven experience in similar environments. Environmental compliance is also a critical consideration.
How does the firm fixed price contract structure ensure cost-effectiveness for this $167 million project?
A firm fixed price contract shifts the risk of cost overruns to the contractor, incentivizing efficient project management and cost control. While it provides budget certainty for the government, it requires thorough initial scope definition to avoid change orders. The government benefits from predictable spending, provided the initial scope accurately reflects the project's needs.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N6274217R1308
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 388 SOUTH MARINE CORPS DRIVE, TAMUNING, GU, 96913
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $167,279,010
Exercised Options: $167,279,010
Current Obligation: $167,279,010
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-01-23
Current End Date: 2025-02-14
Potential End Date: 2025-02-14 00:00:00
Last Modified: 2025-09-26
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