Marine Corps Communications Upgrade in Guam Awarded for $219M, Addressing Critical Infrastructure Needs

Contract Overview

Contract Amount: $219,000,000 ($219.0M)

Contractor: Core Tech-Hdcc-Kajima LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-22

End Date: 2029-03-21

Contract Duration: 1,276 days

Daily Burn Rate: $171.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY21 MCON PROJECT P-649 GUAM JOINT COMMUNICATIONS UPGRADE MARINE CORPS BASE CAMP BLAZ, GUAM

Place of Performance

Location: TAMUNING, GUAM County, GUAM, 96913

Plain-Language Summary

Department of Defense obligated $219.0 million to CORE TECH-HDCC-KAJIMA LLC for work described as: FY21 MCON PROJECT P-649 GUAM JOINT COMMUNICATIONS UPGRADE MARINE CORPS BASE CAMP BLAZ, GUAM Key points: 1. The contract's large value suggests a significant investment in essential communication infrastructure. 2. Full and open competition indicates a broad market engagement, potentially leading to competitive pricing. 3. The definitive contract type with a firm fixed price offers cost certainty for the government. 4. The project duration of over 1000 days highlights the complexity and scale of the communications upgrade. 5. Geographic focus on Guam points to strategic importance for military operations in the Pacific. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The $219 million contract for the Guam Joint Communications Upgrade is substantial, reflecting the critical nature of communication infrastructure for military bases. Benchmarking this against similar large-scale communication system upgrades for Department of Defense facilities would provide a clearer picture of value for money. The firm fixed-price structure, however, offers a degree of cost control for the government, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable contractors were invited to bid. The presence of three bidders, as indicated by the 'no' field, demonstrates a degree of competition. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging innovation among contractors.

Public Impact

The primary beneficiaries are the U.S. Marine Corps and other Department of Defense personnel stationed at Guam, who will receive enhanced and reliable communication capabilities. The project will deliver upgraded power and communication lines, crucial for maintaining operational readiness and security. The geographic impact is concentrated on Guam, a key strategic location in the Indo-Pacific region. The contract is likely to create or sustain jobs in construction and telecommunications, both directly and indirectly, in the Guam region and potentially through the prime contractor's supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extensive construction period.
Dependence on a single prime contractor (CORE TECH-HDCC-KAJIMA LLC) for overall project delivery.
Risk of schedule delays due to the remote location and logistical challenges in Guam.
Ensuring adequate cybersecurity measures are integrated into the new communication infrastructure.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
Long-term duration allows for thorough planning and execution of complex infrastructure work.
Strategic location of the upgrade supports critical national defense objectives in the Pacific.

Sector Analysis

This contract falls within the construction sector, specifically related to power and communication infrastructure. The market for such projects is often characterized by large, specialized firms capable of undertaking complex, high-value government contracts. The $219 million value places it among significant infrastructure investments, and comparable spending benchmarks would likely be found in other major military base modernization or expansion projects, particularly those in strategic overseas locations.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While this suggests the prime contract was awarded to a larger entity, it is crucial to assess the subcontracting plan. The prime contractor, CORE TECH-HDCC-KAJIMA LLC, may be required to engage small businesses for portions of the work, which would be a positive signal for the small business ecosystem. Without specific subcontracting data, the direct impact on small businesses remains uncertain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver specific outcomes within the agreed budget. Transparency can be assessed through contract award notices and performance reports, though detailed public access may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Marine Corps Base Camp Blaz Construction Projects
Department of Defense Pacific Communications Infrastructure
Guam Military Buildup Projects
Naval Facilities Engineering Command (NAVFAC) Contracts
Joint Region Marianas Infrastructure Development

Risk Flags

Potential for schedule delays due to remote location logistics.
Risk of cost increases if scope is not tightly managed.
Cybersecurity vulnerabilities in upgraded systems.
Dependence on prime contractor performance over a long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $219.0 million to CORE TECH-HDCC-KAJIMA LLC. FY21 MCON PROJECT P-649 GUAM JOINT COMMUNICATIONS UPGRADE MARINE CORPS BASE CAMP BLAZ, 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 $219.0 million.

What is the period of performance?

Start: 2025-09-22. End: 2029-03-21.

What is the track record of CORE TECH-HDCC-KAJIMA LLC in executing large-scale communication infrastructure projects for the Department of Defense?

Assessing the track record of CORE TECH-HDCC-KAJIMA LLC requires a review of their past performance on similar Department of Defense contracts. Specifically, one would look for projects involving large-scale communication system upgrades, power infrastructure, and construction in overseas or remote locations. Key indicators include on-time and on-budget completion rates, quality of work, and any history of contract disputes or performance issues. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance assessment reports (CPARS) would be invaluable in evaluating their capabilities and reliability for a project of this magnitude and complexity.

How does the $219 million cost compare to similar communication upgrade projects at other Marine Corps or DoD installations?

To benchmark the $219 million cost, we would compare it to similar projects such as communication network upgrades, tactical data link installations, or base-wide infrastructure modernization efforts at other Department of Defense installations, particularly those of comparable size or strategic importance. Factors like geographic location (e.g., cost of labor and materials in Guam vs. CONUS), project scope (e.g., fiber optic deployment, satellite integration, cybersecurity hardening), and the specific technologies involved would need to be considered. A higher cost per mile of deployed infrastructure or per user supported, relative to similar projects, could indicate potential value concerns, while a lower cost might suggest efficient execution or favorable market conditions.

What are the primary risks associated with the long duration (1276 days) of this contract and how are they being mitigated?

The primary risks associated with a 1276-day contract duration include potential for scope creep, evolving technological requirements, inflation impacting material costs, and contractor performance degradation over time. Mitigation strategies typically involve robust contract management, including regular progress reviews, clear change order processes, and performance incentives or penalties. The firm fixed-price nature helps mitigate cost escalation risks for the government, provided the scope is tightly managed. The government's project management team must maintain vigilant oversight to ensure the contractor remains on track and adapts to any necessary adjustments while adhering to the original cost parameters.

What specific communication capabilities will be enhanced or established by this project at Marine Corps Base Camp Blaz?

This project, FY21 MCON PROJECT P-649 GUAM JOINT COMMUNICATIONS UPGRADE, is designed to significantly enhance and potentially establish new communication capabilities at Marine Corps Base Camp Blaz. While the provided data doesn't detail the specific technologies, typical upgrades in such projects include modernizing command and control systems, improving data network infrastructure (e.g., fiber optics, wireless), enhancing satellite communications, and potentially integrating new cybersecurity measures. The goal is to ensure reliable, secure, and high-bandwidth communication essential for operational readiness, intelligence sharing, and daily base functions in a critical strategic location.

What is the historical spending trend for communication infrastructure upgrades at Guam-based military installations?

Analyzing historical spending trends for communication infrastructure upgrades at Guam-based military installations would involve examining contract awards over the past 5-10 fiscal years. This would include looking at the total dollar amounts obligated for similar projects, the number of contracts awarded, and the types of contractors involved. Understanding these trends can reveal patterns in investment, identify periods of increased activity (potentially linked to broader military buildup initiatives), and provide context for the current $219 million award. It helps determine if this contract represents a significant increase or a continuation of established spending levels for critical infrastructure modernization in the region.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274225R1319

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 388 S MARINE CORPS DR STE 400, 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: $357,006,789

Exercised Options: $289,762,614

Current Obligation: $219,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline