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Changes in Guam’s Plans Lead to Contract Cancellations

by: Matthew Potter
March 12, 2012

Category: Business Line, Companies, Congress, Contract Awards, Countries, Department of Defense, Events, Federal Budget Process, IT, Japan, logistics, Military Aviation, Restructuring, Services, U.S. Marine Corps, U.S. Navy | RSS 2.0

For several years the U.S. and Japanese governments have been working on moving a majority of the U.S. military based on Okinawa to Guam. This is to reduce their presence and potentially provide better training facilities. The move was going to be jointly funded by the two countries. One sticking point has been relocating the main Marine air base on the island which under the current plans will stay.

The Navy has been issuing contracts to build the new facilities on Guam which will include not only barracks but support capability such as a hospital, larger port, and the myriad things needed to support thousands of Marines, Sailors and Airmen and their families. The estimated cost of the move is close to $12 billion.

Right now though the move is under discussion and potential revision. This meant in the FY12 budget the Navy was specifically prevented from obligating anymore of the money from Japan. This meant that it has had to cancel two large contracts that were intended to be funded with that money.

The largest contract was an omnibus one, Mamizu Multiple Award Construction Contract, which would have allowed the Navy to issue orders to build facilities where the Marine headquarters were going to be. The other was for construction of a clinic.

The two governments have been working on this moved for several years. The fact that it remains unresolved despite much of the planning and work done in the last decade is not surprising. The presence of the U.S. on Okinawa has been a burden in the mind of the islanders and they would like all of it to leave. The relocation of the airbase has become a key sticking point and has not shown signs of resolution.

Even so eventually the U.S. will move a great deal of their infrastructure and personnel from Okinawa. The work on Guam will eventually get done and contracts issued and completed.

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