DoD awards $434M for Guam defense system, enhancing air and missile defense capabilities

Contract Overview

Contract Amount: $4,343,880 ($4.3M)

Contractor: Black & Veatch-Jacobs JV

Awarding Agency: Department of Defense

Start Date: 2026-01-06

End Date: 2029-09-30

Contract Duration: 1,363 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY25 MDA PROJECT 694-1 PDI: GUAM DEFENSE SYSTEM, ENHANCED INTEGRATED AIR AND MISSILE DEFENSE (EIAMD), PH 1, MARINE CORPS BASE CAMP BLAZ, GUAM

Place of Performance

Location: YIGO, GUAM County, GUAM, 96929

Plain-Language Summary

Department of Defense obligated $4.3 million to BLACK & VEATCH-JACOBS JV for work described as: FY25 MDA PROJECT 694-1 PDI: GUAM DEFENSE SYSTEM, ENHANCED INTEGRATED AIR AND MISSILE DEFENSE (EIAMD), PH 1, MARINE CORPS BASE CAMP BLAZ, GUAM Key points: 1. Contract awarded to Black & Veatch-Jacobs JV for critical infrastructure development. 2. Focus on Enhanced Integrated Air and Missile Defense (EIAMD) Phase 1. 3. Project supports Marine Corps Base Camp Blaz in Guam. 4. Long-term effort with a performance period extending through September 2029. 5. Firm Fixed Price contract type suggests defined scope and cost control. 6. Geographic focus on Guam highlights strategic importance in the Pacific.

Value Assessment

Rating: good

The contract value of $434.39 million for engineering services appears reasonable given the scope and duration. While specific benchmarks for EIAMD infrastructure in Guam are not readily available, the firm fixed-price nature of the contract suggests a degree of cost certainty. The award to a joint venture indicates a capacity to handle complex, large-scale projects. Further analysis would require comparing the unit costs of similar defense infrastructure projects in comparable geographic locations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The selection of a joint venture suggests that the evaluation criteria likely emphasized technical expertise, past performance, and the ability to manage a complex project.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving the best value through a competitive bidding process, potentially driving down costs and improving service quality.

Public Impact

Enhances national security by strengthening air and missile defense in the Indo-Pacific region. Supports the operational readiness and security of U.S. Marine Corps forces stationed in Guam. Contributes to the development of critical defense infrastructure on Guam, a key strategic location. Likely to create or sustain jobs in engineering, construction, and project management fields. Improves the defensive posture of Guam against potential threats.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or technical challenges arise during the multi-year project.
Dependence on the successful integration of complex systems, which carries inherent technical risks.
Geopolitical factors in the Indo-Pacific could impact project timelines or resource availability.

Positive Signals

Award to a joint venture with established entities (Black & Veatch, Jacobs) suggests strong technical capabilities and experience.
Firm Fixed Price contract type provides cost predictability for the government.
Long performance period allows for phased development and adaptation to evolving requirements.
Strategic importance of the project to national defense may ensure adequate funding and oversight.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense infrastructure. The market for large-scale defense engineering and construction projects is dominated by a few major players and joint ventures capable of handling the complexity and scale required. Spending on such projects is often driven by strategic geopolitical considerations and modernization efforts. Comparable spending benchmarks would typically involve other major military construction or infrastructure upgrades in high-priority regions.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. While the prime contractor is a joint venture of larger entities, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the specific requirements outlined in the contract and the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with potential involvement from the Missile Defense Agency given the project's nature. Accountability measures will be embedded in the contract's performance standards, milestones, and payment schedules. Transparency will be facilitated through contract reporting requirements and potentially public contract databases, though specific project details might be limited due to national security concerns. Inspector General oversight would apply to ensure proper use of funds and prevent fraud.

Related Government Programs

Missile Defense Systems
Indo-Pacific Defense Initiatives
Military Construction Projects
Air and Missile Defense Architecture

Risk Flags

Potential for cost overruns due to remote location logistics.
Technical complexity of integrating advanced missile defense systems.
Long project duration increases risk of scope changes or delays.
Geopolitical instability in the Indo-Pacific region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.3 million to BLACK & VEATCH-JACOBS JV. FY25 MDA PROJECT 694-1 PDI: GUAM DEFENSE SYSTEM, ENHANCED INTEGRATED AIR AND MISSILE DEFENSE (EIAMD), PH 1, MARINE CORPS BASE CAMP BLAZ, 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 $4.3 million.

What is the period of performance?

Start: 2026-01-06. End: 2029-09-30.

What is the specific breakdown of costs for different phases or components of the EIAMD project in Guam?

The provided data does not include a detailed cost breakdown for the FY25 MDA PROJECT 694-1 PDI. The total award amount is $434,388,000 for the entire project, which spans from January 6, 2026, to September 30, 2029. To understand the cost breakdown, one would need to access the detailed contract line item numbers (CLINs) or task order details, which are typically not publicly available. Such a breakdown would likely delineate costs for design, materials, labor, equipment, and potentially specific system integration efforts related to the Enhanced Integrated Air and Missile Defense (EIAMD) system.

How does the cost per square foot or per unit of defense infrastructure compare to similar projects in other U.S. territories or allied nations?

Direct cost-per-unit comparisons for specialized defense infrastructure like the EIAMD system in Guam are challenging due to unique factors. Guam's remote location significantly increases logistical costs for materials and labor compared to CONUS projects. Furthermore, the specific technological requirements of an Enhanced Integrated Air and Missile Defense system are highly specialized and not directly comparable to standard construction. While benchmarks for military construction exist, the unique nature of this project and its location mean that a simple per-square-foot comparison might be misleading. The firm fixed-price nature suggests the contractor has factored these complexities into their bid.

What is the track record of the Black & Veatch-Jacobs JV in delivering large-scale defense infrastructure projects, particularly in overseas locations?

The Black & Veatch-Jacobs JV is a combination of two established companies with extensive experience in large-scale engineering and construction. Black & Veatch has a significant history in government and defense projects, including critical infrastructure and energy systems. Jacobs has a strong portfolio in aerospace, defense, and infrastructure, often working on complex government contracts. While the specific JV entity's track record for this exact type of project needs verification through contract databases, the parent companies' combined expertise suggests a strong capability. Their experience in overseas operations and complex project management would be critical evaluation factors for the Department of the Navy.

What are the key performance indicators (KPIs) and success metrics for this EIAMD project?

Key performance indicators for this EIAMD project would likely focus on the successful design, integration, and operational readiness of the air and missile defense systems. Specific metrics could include adherence to project schedules, completion of critical milestones, system performance validation (e.g., detection, tracking, and engagement capabilities), compliance with security and environmental standards, and overall system reliability post-installation. The firm fixed-price contract implies that meeting these performance standards within the agreed budget and timeline is paramount. The Department of the Navy would establish detailed KPIs within the contract's statement of work.

How has spending on air and missile defense infrastructure in the Pacific region evolved over the last five fiscal years?

Spending on air and missile defense (AMD) infrastructure in the Pacific region has seen a significant and consistent increase over the last five fiscal years, driven by evolving geopolitical dynamics and strategic priorities. This trend reflects a broader U.S. defense posture shift towards the Indo-Pacific. Investments have focused on enhancing existing bases, developing new capabilities, and improving command and control networks to counter regional threats. Contracts like the one for Guam's EIAMD are indicative of this sustained investment. Specific figures would require detailed analysis of defense budget allocations and contract awards across various services and agencies operating in the region.

What are the potential risks associated with the long duration (nearly 4 years) and remote location of this project?

The long duration and remote location present several risks. Logistical challenges in Guam can lead to increased costs and delays for transporting materials, equipment, and personnel. The remote island environment may also pose unique environmental considerations and require specialized construction techniques. Furthermore, a nearly four-year timeline increases the risk of scope creep, changes in requirements due to evolving threats or technologies, and potential workforce fluctuations. Managing these risks requires robust project management, contingency planning, and strong communication channels between the contractor and the government.

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: $4,343,880

Exercised Options: $4,343,880

Current Obligation: $4,343,880

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