BIDS OPEN ON $3 BILLION MILITARY CONTRACTS ON

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GUAM
Major buildup projects funded by Japan

By Brett Kelman HAGÅTÑA, Guam (Pacific Daily News, March, 1, 2011) – In Guam, companies have about two-and-a-half months to submit bids to become part of a select group of military contractors that will bid on about US$3 billion of buildup projects funded by Japan.

Proposals on the Mamizu Multiple Award Construction Contract or Mamizu MACC one of the largest military contacts in the history of Guam are due by May 16, according to online Navy procurement documents.

The Navy will select three to seven companies, which have the right to bid on a range of buildup projects. Most will run from US$15 million to about US$300 million, the procurement documents state.

Two of the first projects include the ground work for the Finegayan Marine base, a contract that could be worth as much as US$500 million, and a waterfront operations headquarters in the Apra Harbor area, which could be worth as much as US$25 million.

Other projects include construction of barracks, dining halls, "quality of life" facilities, fire and police stations and other infrastructure projects, the procurement documents state.

Gary Hiles, a local economist with the Department of Labor, yesterday said the Mamizu MACC is evidence of slowed but certain progress on the military buildup.

"I think it shows a substantial commitment and that plans are moving forward," Hiles said. But he added: This is not as immediate as a specific project award, so that indicates projects will be awarded further down the line, so the (economic) impact is probably longer term."

The Mamizu MACC will be the second contract of this type that Naval Facilities Pacific has issued for the military buildup. Last May, the Navy awarded a US$4 billion federally funded MACC to seven companies, including four established Guam construction companies.

Core Tech, Black Construction, dck pacific Guam, and Watts Constructors are each part of a joint venture that was awarded an opportunity to compete for US$4 billion in contracts.

Now they may be looking for more.

At least 278 companies have identified themselves has "interested vendors" who want some piece of the Mamizu MACC, including all four of those Guam contractors, according to FedBizOpps.gov, a website that allows companies to browse contract opportunities.

That list of interested vendors also includes many other smaller local companies like Kwikspace, G4S Security Services and Taniguchi Ruth Architects some of which hope to become subcontractors.

Last year, Hiles said the previous MACC was by far the greatest military spending in Guam's history, dwarfing any other spending period many time over. The Mamizu Multiple Award Construction Contract is second only to that.

If all the money from both MACC contracts is spent within five years, it will total US$1.3 billion annually, Hiles wrote in an e-mail yesterday.

To "provide some perspective," the federal government spent a total of US$1.4 billion in Guam in fiscal 2009 on all projects military and civilian.

Unlike the MACC awarded by the military last year, the Mamizu Multiple Award Construction Contract is funded by Japan. With this in mind, at least one interested construction company has joined with a Japanese partner.

The contractor dck-ecc pacific Guam LLC, which was formed last year by combining two companies, is now dck-eec Taisei after the addition of a large Japanese firm. The partnership was announced in a press release yesterday.

"The formation of this partnership dck-ecc Taisei LLC brings together the strengths of dck-ecc, which has a 25-year history of award-winning military and commercial construction experience on Guam, and Taisei, a US$17.8 billion global company specializing in building construction, civil engineering, and real estate development," the press release said.

Theron Halloway, a general manager for dck pacific, said the existing partnership welcomed a Japanese addition because the MACC projects are funded by the government of Japan. The inclusion of the Taisei Corporation will hopefully help the joint venture purse the Mamizu Multiple Award Construction Contract and the individual projects it contains, Halloway said.

"We believe it will be beneficial to have (a Japanese partner), Halloway said. I don't believe it was a requirement, but we do feel it will be helpful."

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