Guam Buildup Update from Calvo Fisher & Jacob

September 24, 2010

Plans to transfer 8,600 Marines and 9,000 military dependents from Okinawa to Guam recently took a significant step forward with three major announcements, two from the Navy and one from the local government. 

In May, the Navy selected seven contractors (including contractors represented by Calvo Fisher & Jacob) to form the group that will be eligible going forward to bid on the $4 billion in build-up related projects financed by the Department of Defense (DoD) under the Guam Multiple Award Construction Contract (Guam MACC).  The contractors short-listed were: CNMS, a joint venture, Honolulu, Hawaii; Core Tech-AMEC-SKEC, LLC, Honolulu, Hawaii; dck-ecc pacific guam llc, Clairton, Pennsylvania; Guam MACC Builders JV, Honolulu, Hawaii; Hensel Phelps-Granite-Traylor Pacific JV, Greeley, Colorado; Kiewit-Mortenson Joint Venture, Kapolei, Hawaii; and Tutor Perini Corporation, Sylmar, California.  Most of the contractors selected are joint ventures and consist of a mix of large national or international contractors along with regional firms. 

In late September, the Navy executed the Record of Decision (ROD).  The ROD documents the Navy’s strategy for mitigating the environmental impact of the strategic realignment of military personnel, equipment and infrastructure from Okinawa to Guam.  With the execution of the ROD, the Navy is anticipated to enter into nearly $1 billion in contracts in the coming weeks with eligible Guam MACC contractors.   Most of this $1 billion will go toward on-base infrastructure projects, including improvements to the Navy’s existing wharves in Apra Harbor.  

Also in late September, the government of Guam (GovGuam) announced that the Japanese Bank for International Cooperation (JBIC) had recently engaged in talks with DoD officials to finalize the transfer of $740 million from JBIC to DoD to be used toward upgrading Guam’s water and power infrastructure.  This news was welcomed by GovGuam which had recently expressed concern about funding sources for the $1.3 billion in improvements that the U.S. Environmental Protection Agency determined Guam needs in order to ensure adequate potable water and wastewater management facilities after the build-up.

Finally, in addition to official announcements from D.C. and Hagåtña, another major milestone was crossed when Younex Enterprises Corp broke ground in April on an 18,000-bed, fully integrated workforce village to house temporary labor needed for the build-up.  The workforce village is being constructed just south of Finegayan, in mid-northern Guam, where the Marine base, barracks and officers’ housing will be located.

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Calvo Fisher & Jacob is a full-service firm with offices in Guam, Saipan and San Francisco where it represents clients in areas including complex civil litigation, international law, finance, real estate, land use and development, communications, business licensing, bank regulation and licensing, and government regulations.  The firm’s Guam office, in particular, is adept in dealing with matters unique to Guam and the CNMI, such as the local court systems and regulatory agencies.