Lockheed Martin to Support Guam Amidst Expansion

by: Matthew Potter
April 14, 2011

Category: Business Line, Companies, Contract Additions, Contract Awards, Department of Defense, Events, Federal Budget Process, IT, Lockheed Martin, logistics, Restructuring, Services, U.S. Air Force, U.S. Marine Corps, U.S. Navy | RSS 2.0

Many of the U.S. military facilities and bases sign omnibus support contracts which have one or a team of companies manage all of the infrastructure and support for the operation. For some places like territories or important bases geographically isolated such as Kwajalein Atoll these contracts extend to the whole island. In Guam the base operating service contract is managed by Lockheed Martin (LMT) with the support of local and other contractors.

Lockheed’s team just received a new contract DZSP 21 worth almost $500 million to provide support to the U.S. Naval Base, Air Force Operations as well as various infrastructure such as food services, utilities, emergency services and so on. This one year contract now makes Lockheed and its support contractors the fourth largest employer on Guam with over 1,000 employees.

Guam has seen heavy use in Afghanistan as it provides a base for long range Air Force bombers and tankers. It also provides support to forward deployed Navy ships and submarines. The requirements of the fighting since 2001 have required expansion of its facilities and capabilities.

More importantly Guam is receiving a massive transfer of troops, dependents and equipment from the U.S. Marine Corps and Navy who are currently based on Okinawa. As part of a long negotiated agreement with Japan the U.S. is reducing its footprint on that island captured at the end of World War II. Because of this transfer Guam will have to see new facilities such as hospitals, utilities and housing built along with a bigger port. Some of this is being paid for by the U.S. and some by Japan as part of the agreement.

The size of the one year contract awarded to Lockheed shows indicates how much more potential growth there is in DZSP 21 once the transfer of all of the Marines and other personnel is complete. Unless the U.S. backtracks on its plans or reduces the forces deployed overseas then this contract or its follow-on ones should see significant growth.

Photo from janineomg’s flickr photostream.

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