Army awards $111.6M for Guam Defense System design, focusing on forward operating sites

Contract Overview

Contract Amount: $11,160,842 ($11.2M)

Contractor: Black & Veatch-Jacobs JV

Awarding Agency: Department of Defense

Start Date: 2026-01-08

End Date: 2026-12-31

Contract Duration: 357 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY27 ARMY (MDA) P-236, PDI: GUAM DEFENSE SYSTEM, FORWARD OPERATING SITES, JR MARIANAS, GUAM - COMPLETE DESIGN, 65% TO FINAL

Place of Performance

Location: YIGO, GUAM County, GUAM, 96929

Plain-Language Summary

Department of Defense obligated $11.2 million to BLACK & VEATCH-JACOBS JV for work described as: FY27 ARMY (MDA) P-236, PDI: GUAM DEFENSE SYSTEM, FORWARD OPERATING SITES, JR MARIANAS, GUAM - COMPLETE DESIGN, 65% TO FINAL Key points: 1. Significant investment in strategic Guam infrastructure to support defense operations. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to design completion and execution in a remote location. 4. Sector is Engineering Services, crucial for large-scale defense projects.

Value Assessment

Rating: good

The contract value of $111.6M for design services appears reasonable given the scope and complexity of establishing forward operating sites in Guam. Benchmarking against similar large-scale defense infrastructure design contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows the government to select the best value. The use of a delivery order under a larger contract structure indicates a pre-established framework for procurement.

Taxpayer Impact: Taxpayer funds are being used for critical defense infrastructure design, aiming for long-term strategic advantage and security.

Public Impact

Enhances US military presence and capabilities in the Indo-Pacific region. Supports the relocation and modernization of forces, improving operational readiness. Potential for local economic impact through subcontracting and related services in Guam.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Geopolitical risks in the Indo-Pacific region.
Potential for cost overruns during final design and subsequent construction phases.
Logistical challenges of working in a remote island location.

Positive Signals

Strategic importance of Guam as a key military hub.
Experienced contractor team (Black & Veatch-Jacobs JV) likely brings relevant expertise.
Firm Fixed Price contract provides cost certainty for the design phase.

Sector Analysis

Engineering Services (NAICS 541330) are vital for complex defense projects. This contract represents a significant investment in specialized design capabilities for critical military infrastructure, aligning with broader defense spending trends in the Indo-Pacific.

Small Business Impact

While the prime contractor is a joint venture, opportunities for small businesses may exist through subcontracting for specialized design elements, materials, or support services. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Navy, acting for the Army, is overseeing this contract. Oversight will be critical to ensure the design meets all requirements, stays within budget, and adheres to timelines, especially given the project's strategic importance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Geopolitical instability in the Indo-Pacific.
Logistical challenges and potential delays due to remote location.
Dependency on successful completion of design for subsequent construction phases.
Potential for scope creep or unforeseen requirements during the design process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to BLACK & VEATCH-JACOBS JV. FY27 ARMY (MDA) P-236, PDI: GUAM DEFENSE SYSTEM, FORWARD OPERATING SITES, JR MARIANAS, GUAM - COMPLETE DESIGN, 65% TO FINAL

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 $11.2 million.

What is the period of performance?

Start: 2026-01-08. End: 2026-12-31.

What is the projected total cost for the full construction and implementation of the Guam Defense System, and how does this design contract fit into that larger budget?

The provided data only covers the design phase ($111.6M). The total cost for the full construction and implementation of the Guam Defense System is not detailed here. This design contract is a foundational step, and its cost should be evaluated in proportion to the overall projected capital investment for the entire system. Understanding the subsequent phases and their estimated budgets is crucial for a complete value assessment.

What specific risks are associated with executing a large-scale design and potential construction project in Guam, considering its geographic location and infrastructure limitations?

Executing projects in Guam presents unique risks including logistical challenges for material and personnel transport, potential supply chain disruptions, higher labor costs, and environmental considerations specific to island ecosystems. Infrastructure limitations on the island could also impact construction timelines and costs. Geopolitical tensions in the region add another layer of risk that requires careful management and contingency planning.

How effectively will the completed design facilitate the operational readiness and strategic objectives of the US Army in the Indo-Pacific theater?

The design's effectiveness hinges on its ability to create resilient and functional forward operating sites tailored to the Army's specific mission requirements in the Indo-Pacific. Successful execution should enhance force projection capabilities, improve logistical support, and bolster deterrence posture. The design must anticipate future operational needs and integrate seamlessly with existing and planned military infrastructure in the region.

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: $11,160,842

Exercised Options: $11,160,842

Current Obligation: $11,160,842

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