DoD awards $11.9M for Guam missile defense, highlighting critical infrastructure needs in the Pacific

Contract Overview

Contract Amount: $11,941,276 ($11.9M)

Contractor: Black & Veatch-Jacobs JV

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2026-07-31

Contract Duration: 395 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY27 MDA PROJECT P-698 PDI: GUAM DEFENSE SYSTEM, ENHANCED INTEGRATED AIR AND MISSILE DEFENSE (EIAMD), PH 2 NAVAL BASE, GUAM.

Place of Performance

Location: YIGO, GUAM County, GUAM, 96929

Plain-Language Summary

Department of Defense obligated $11.9 million to BLACK & VEATCH-JACOBS JV for work described as: FY27 MDA PROJECT P-698 PDI: GUAM DEFENSE SYSTEM, ENHANCED INTEGRATED AIR AND MISSILE DEFENSE (EIAMD), PH 2 NAVAL BASE, GUAM. Key points: 1. Contract addresses a critical defense need for enhanced missile defense capabilities in Guam. 2. The firm-fixed-price structure aims to control costs for this significant infrastructure project. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The project duration of 395 days indicates a focused, near-term execution timeline. 5. This award falls under engineering services, crucial for complex defense installations. 6. Guam's strategic location makes such defense enhancements vital for regional security.

Value Assessment

Rating: good

The contract value of $11.9 million for engineering services related to missile defense infrastructure appears reasonable given the strategic importance and complexity of the project. Benchmarking against similar large-scale defense infrastructure projects in the Pacific region would provide further context, but the fixed-price nature suggests an effort to establish clear cost expectations. The specific nature of enhanced integrated air and missile defense (EIAMD) implies specialized engineering expertise, which can command higher rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the contract. The specific number of bidders is not provided, but the designation suggests a robust process was followed.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, ultimately maximizing the value of the government's investment.

Public Impact

The primary beneficiaries are the U.S. Department of Defense and its naval operations in the Pacific. The contract will deliver enhanced integrated air and missile defense capabilities to Naval Base Guam. The geographic impact is focused on Guam, a critical strategic location in the Indo-Pacific. This project supports the U.S. military's strategic posture and deterrence capabilities in the region. It contributes to the modernization of defense infrastructure, ensuring operational readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during the engineering phase.
Dependence on specialized engineering expertise, which could be a bottleneck.
Geopolitical risks in the Indo-Pacific region could impact project timelines or security.

Positive Signals

Clear project scope for a critical defense system enhancement.
Firm-fixed-price contract type helps manage cost certainty.
Award to a joint venture suggests combined expertise and capacity.
Strategic importance of the project may prioritize timely execution and funding.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense infrastructure development. The market for defense engineering services is substantial, driven by ongoing military modernization efforts and geopolitical considerations. Projects like this, involving advanced missile defense systems, require highly specialized firms with proven track records in complex government contracting. Comparable spending benchmarks would likely be found in other major military construction and systems integration projects within the Department of Defense.

Small Business Impact

The contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses in the provided data. The award to a joint venture (BLACK & VEATCH-JACOBS JV) suggests a focus on large-scale capabilities. Further analysis would be needed to determine if subcontracting opportunities exist within the broader ecosystem of this project.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy, a component of the Department of Defense. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract award announcements and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Agency (MDA) Programs
Pacific Defense Infrastructure Projects
Naval Base Guam Modernization Efforts
Integrated Air and Missile Defense (IAMD) Systems

Risk Flags

Potential for cost growth despite fixed-price contract
Logistical challenges due to remote location
Complexity of integrated missile defense systems
Geopolitical instability in the Indo-Pacific region

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to BLACK & VEATCH-JACOBS JV. FY27 MDA PROJECT P-698 PDI: GUAM DEFENSE SYSTEM, ENHANCED INTEGRATED AIR AND MISSILE DEFENSE (EIAMD), PH 2 NAVAL BASE, GUAM.

Who is the contractor on this award?

The obligated recipient is BLACK & VEATCH-JACOBS JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-07-31.

What is the track record of BLACK & VEATCH-JACOBS JV in delivering similar defense engineering projects?

Information regarding the specific track record of the BLACK & VEATCH-JACOBS JV for similar defense engineering projects is not detailed in the provided data. However, both Black & Veatch and Jacobs are established engineering and construction firms with extensive experience in large-scale government and defense contracts. Their joint venture likely leverages the combined expertise and resources of these parent companies. A deeper dive into their past performance on projects involving missile defense systems, critical infrastructure, or work within the Department of the Navy would be necessary to fully assess their capabilities and past success rates. This would typically involve reviewing past performance evaluations and project completion records.

How does the $11.9 million cost compare to similar missile defense infrastructure projects?

Direct cost comparisons for specialized missile defense infrastructure projects are challenging due to the unique nature of each installation and the specific technologies involved. The $11.9 million award for engineering services for Guam's EIAMD Phase 2 is for a specific segment of a larger defense initiative. To benchmark effectively, one would need to identify comparable projects in terms of scope (e.g., radar integration, command and control systems, physical site preparation for defense assets) and geographic context (e.g., other Pacific installations, high-cost-of-living areas). Given Guam's strategic importance and logistical complexities, costs can be higher than mainland projects. The firm-fixed-price nature suggests an attempt to contain these costs within a defined budget.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract include execution risks related to the complex engineering requirements of an Enhanced Integrated Air and Missile Defense (EIAMD) system, potential for schedule delays due to the remote location of Guam and associated logistical challenges, and geopolitical risks inherent in the Indo-Pacific region that could impact defense priorities or security. Furthermore, unforeseen site conditions or integration issues with existing infrastructure could lead to scope creep or cost increases, despite the firm-fixed-price structure. The reliance on a joint venture, while potentially bringing combined strengths, can also introduce risks related to coordination and management between the partner firms.

How effective is the full and open competition strategy likely to be for this type of specialized engineering service?

A full and open competition strategy is generally considered the most effective approach for acquiring specialized engineering services, as it maximizes the pool of potential bidders and encourages a wide range of technical solutions and pricing strategies. For a project as critical and complex as enhancing missile defense capabilities in Guam, this approach allows the Navy to solicit proposals from firms with the most relevant expertise and experience. While it requires more administrative effort upfront, it increases the likelihood of selecting the best value offer and achieving competitive pricing. The success of the competition hinges on the clarity of the solicitation requirements and the evaluation criteria used to select the winning proposal.

What are the historical spending patterns for missile defense infrastructure in Guam?

Historical spending patterns for missile defense infrastructure specifically in Guam are not detailed in the provided data. However, it is widely understood that Guam has been a significant focus for U.S. defense investments in recent years, driven by its strategic location and the need to bolster regional deterrence capabilities. This includes investments in various defense systems, command and control facilities, and supporting infrastructure. The current award for EIAMD Phase 2 represents a continuation of these efforts. Comprehensive analysis would require examining budget allocations and contract awards related to missile defense and broader military infrastructure development on the island over the past decade.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11401 LAMAR AVE, LEAWOOD, KS, 66211

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,941,276

Exercised Options: $11,941,276

Current Obligation: $11,941,276

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $134,227

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274224D0009

IDV Type: IDC

Timeline