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Navy leaders in Guam have awarded a new $420 million service contract to a joint venture of three companies, replacing Raytheon, the contractor responsible for services for the past five years, officials said.

The new 10-year contract will provide support in 16 areas, including port services, facilities management, ordnance and public safety, said Naval Forces Marianas spokeswoman Lt. Arwen Consaul.

It was created to keep up with Guam’s expanding Navy presence and new support and service needs. Morale, Welfare and Recreation and food services from restaurants and concessions are not included, she added.

Navy leaders awarded the contract to Day and Zimmerman Group, Parsons Infrastructure and Technology Group, and SKE Support Services.

The cost-plus-award-fee contract pays a base amount each year with the option for bonuses for exceptional work in each of the 16 areas. Military officials will evaluate the work monthly.

“Each area has military officers that oversee that particular functional area,” Consaul said.

The 10-year estimated total cost is $423,453,152, according to a Navy release.

The contract can be renegotiated after a one-year base period, which starts in March, following a three-month turnover from Raytheon, Consaul said.

The new contract replaces a five-year-old Raytheon contract, created when the Navy began outsourcing many services to civilian contractors.

Civilian subcontractors were hired to replace sailors working in several areas, such as public relations, galley food service and supply, to improve efficiency and cut costs.

Consaul said it is up to the incoming contractor to determine how many civilian contractor jobs will remain and who will fill those positions.

Officials at Raytheon would not disclose how many employees or contractors they currently employ.

The new contract was negotiated to replace an outdated one, not because of anything to do with Raytheon, Consaul said.

“We’re steadily growing with personnel and commands,” Consaul said. “The contract needed to be reviewed and updated.”

As the Navy presence steadily expanded on Guam, more services were needed. The Navy now hosts three submarines and a Coast Guard cutter, as well as many port visits each year.

The Base Operations Support contract was put to bid through the Naval Facilities Engineering Command electronic solicitation Web site and received seven offers, according to a Navy statement.

Some of the contract companies currently work with the Navy or military. Day and Zimmerman provides logistics and support to the Military Sealift Command and operates a warehouse on Guam, according to the company’s Web site.

Parsons helped design and build the Guam International Airport and is helping to disarm bombs at Andersen Air Force Base.

SKE Support Services holds several defense department contracts.


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