Latest updates: Article closed after 2011. Located in the middle of the Indian Ocean, the British Indian Ocean territory of Diego Garcia is a key strategic base that acts as a staging area for navy ships, long-range bombers, aerial tankers, and other military assets whose missions take them to Africa, Asia, and the Middle east. Secondary missions include its status as one of the Space Shuttle’s emergency landing sites, and hosting one of Global Positioning System’s 3 ground antennas, as well as facilities belonging to the USA’s Space Surveillance Network. The UK/ U.S. treaty that turned the island into a military base was signed in 1966. It runs until 2036, but either government can opt out in 2016. Meanwhile, there’s the non-trivial matter of supplying, improving, and operating the island’s military infrastructure. This article offers a look into those contracts, over a slice of time from FY 2007-2011…




Contracts (FY 2007 – 2011)

DG flight line

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Unless otherwise specified, The Naval Facilities Engineering Command (NAVFAC), Pacific in Pearl Harbor, Hawaii, issues all contracts. Unless otherwise noted, contracts are issued to DG21, LLC, a Delaware-registered firm formed specifically to bid for Diego Garcia’s Base Operations Support (BOS) contract. Its partners include First Support Services in Dallas TX; W.S. Atkins based in Epsom, England; and the Philadelphia based DS2 joint venture between Day and Zimmerman and Lockheed Martin. Its web site states that:

“The workforce is predominantly Filipino managed by expatriates from the United States and the United Kingdom. There are also some employees from Singapore and Mauritius. There are no families, spouses, or dependants on Diego Garcia.”

July 29/11: A $47.7 million firm-fixed-price-plus-award-fee, indefinite-delivery/ indefinite-quantity contract modification. The Pentagon says this is exercising Option 1 for BOS services at U.S. Navy Support Facility, Diego Garcia, and adds that the total contract amount after exercise of this option will be $479.3 million. That seems to conflict with the July 30/10 contract announcement, given the contract number.

Work will be performed in Diego Garcia, British Indian Ocean Territory, and is expected to be complete by July 2012. $10.5 million will expire at the end of the current fiscal year, and $19.1 million is subject to the availability of FY 2012 funds (N62742-06-D-4501).

July 7/11: G4S-SJC, LLC in San Diego, CA receives a maximum $90 million design-build indefinite-delivery/ indefinite-quantity construction contract for various repairs, alteration, construction, and demolition work to shore facilities at the U.S. Navy Support Facility, Diego Garcia. All work on this contract will be performed in Diego Garcia, British Indian Ocean Territory, and is expected to be complete by July 2014. $4 million will expire at the end of the current fiscal year. This contract was competitively procured via the Asia Navy Electronic Commerce Online website, with 4 proposals received. US Naval Facilities Engineering Command, Far East in Yokosuka, Japan (N40084-11-D-0004).

The awards also comes with 3 initial task orders. Task order 0001 is being awarded at $4 million to fix the shoreline revetment at the back of Bachelor Officers Quarters 7. Task order 0002 is being awarded at $1.2 million to replace the heating, ventilation, and air conditioning system at facility number 939, Air Force Galley. Task order 0003 is being awarded at $217,571 to build a shelter for 2 base stations. Work for all 3 task orders is expected to be completed by July 2012.

Oct 10/10: The Black Construction/Mace International joint venture in Barrigada, Guam, receives a $9 firm-fixed-price contract to protect threatened infrastructure along about 700 feet of shoreline The ocean is relentless, and will wash some shoreline facilities away of you let it. The JV will replace the existing rubble-mound revetment with an engineered revetment consisting of Class A armor stones; Class B underlayer stones and geotextile fabric; and stabilize portions of existing shoreline corridor with soil backfilling and re-vegetation.

Work will be performed at Diego Garcia, British Indian Ocean Territories. Work is expected to be complete by October 2011, and contract funds will expire at the end of the current fiscal year. That’s interesting, because the precise award date was Sept 30/10, which is the end of the US government’s FY 2010. This contract was negotiated as sole-source procurement in accordance with FAR 6.302-1, “only one responsible source”, by US Naval Facilities Engineering Command, Far East in Yokosuka, Japan (N40084-10-C-0087).

July 30/10: A $47.1 million modification under a previously awarded firm-fixed price plus award fee, indefinite-delivery/ indefinite-quantity contract (N62742-06-D-4501), exercising the 4th option period for base operating support services at U.S. Navy Support Facility, Diego Garcia, British Indian Ocean Territory. The firm will perform “all management, labor, administration, supervision, materials, supplies, and equipment to provide integrated Base Operating Services.”

The award raises the contract’s total awarded value to $479 million; $10.2 million of the newly budgeted funds will expire at the end of the current fiscal year, on Sept 30/10. Work under this option is expected to be complete by July 31/11.

Aug 27/09: Black Construction/MACE International Joint Venture, GMF Barrigada, Guam, received a $19.2 million firm-fixed price contract for upgrades to the existing air ops water treatment plant and air ops wastewater treatment plant and for construction of a 1-story warehouse and wharf utility improvements at Naval Support Facility, Diego Garcia, British Indian Ocean Territory. Work is expected to be completed by July 2011. This contract was competitively procured via the Navy Electronic Commerce Online website with 2 proposals received by the NAVFAC Far East in Yokosuka, Japan (N40084-09-C-0018).

Aug 20/09: Sealift, Inc. in Oyster Bay, NY received a $7.6 million firm-fixed-price contract for a 1-year time charter of the MV Rio Bogota (see photo), currently a foreign flag vessel, which will be American-flagged upon delivery to the Government. This contract includes options which, if exercised, would bring the cumulative value to $31.4 million.

The ship’s primary mission will be to resupply US armed services personnel on Diego Garcia in the Indian Ocean. Sealift expects to provide the ship through November 2010, or up to October 2014 if all options are exercised. This contract was competitively procured, with 6 offers received by US Military Sealift Command in Washington, DC (N00033-09-C-5502).

July 30/09: A $28.7 million modification to a previously awarded fixed-price contract (N62742-06-D-4501), exercising the 3rd option period for base operating support services at the U.S. Navy Support Facility, Diego Garcia. The Pentagon’s DefenseLINK states that the total contract amount after exercise of this option will be $468.8 million.

Work will be performed at Diego Garcia, British Indian Ocean Territory, and is expected to be complete July 31, 2010. Contract funds in the amount of $9.2 million will expire at the end of the current fiscal year, on Sept 30/09. The Naval Facilities Engineering Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity.

July 30/08: An estimated $28.4 million modification P00034 under previously awarded firm-fixed-price, indefinite-quantity contract with award fee provisions (N62742-06-D-4501) to exercise the 2nd option period of the 2006 contract for Base Operating Support Services at the U.S. Navy Support Facility, Diego Garcia. The work to be performed provides for all management, labor, administration, supervision, materials, supplies, and equipment. The Pentagon’s DefenseLINK states that the total contract amount after exercise of this option will be $467.7 million.

Work will be performed at the U.S. Navy Support Facility, Diego Garcia, British Indian Ocean Territory, and is expected to be complete in July 2009. Contract funds will expire at the end of the current fiscal year. The most recent basic contract was competitively procured with 78 offers solicited, 3 proposals received, and an award made to DG21 on July 6/06.

July 30/07: DG21 in Dallas, TX received $26.1 million for Modification P00019 under previously awarded firm-fixed-price, indefinite-quantity fee provisions contract (N62742-06-D-4501) to exercise an option period for base operating support services. $21.7 million of the award will be funded subject to the availability of funds.

The work to be performed provides for all management, labor, administration, supervision, materials, supplies, and equipment to provide integrated base operating services at the U.S. Navy Support Facility, Diego Garcia. Work is expected to be completed by July 2008.

After exercise of this modification, the total cumulative contract amount will be $452.7 million.

July 6/07: DG21, LCC in Dallas, TX received a $23.6 million firm-fixed-price, indefinite-quantity with award-fee/ award-option contract for base operating support services for the Navy Support Facility Diego Garcia. Contract funds in the amount of $1.6 million will expire at the end of the current fiscal year; and no obligations or expenditures shall be made until congressional approval of the FY07 DOD Appropriations Act, or passage of a continuing resolution for work being funded from FY07 appropriations.

This contract contains options, which if exercised, will bring the total cumulative value of the contract to a not to exceed value of $455.3 million. Work is expected to be complete by July 2007 (July 2016 with options). This contract was competitively procured via the NAVFAC e-solicitation website with 3 proposals received (N62742-06-D-4501).

March 30/07: DGM21 LLC in Montrose, CO received a $31.9 million firm-fixed-price contract for the FY 2007 consolidated construction projects for U.S. Naval Support Facility, Diego Garcia, British Indian Ocean Territories. This is a design-build project is for wharf improvements and Shore Support Facilities related to the new SSGN submarines, with performance and prescriptive requirements provided by the Government. Work will be performed in Diego Garcia, British Indian Ocean Territories, and is expected to be complete April 2009.

This contract was competitively procured with 17 solicitation packages distributed and 1 proposal received by the Naval Facilities Engineering Command, Pacific, Construction Contracts Branch (N62742-07-C-1313).