The Navy recently awarded five companies indefinite delivery/indefinite quantity (IDIQ) Multiple Awards Construction Contracts (MACC) to compete on Shipyard Infrastructure Optimization Program (SIOP) task orders worth up to $8 billion total.

The contracts, awarded on Nov. 10, went to Bechtel National, a Dragados/Hawaiian Dredging/Orion JV joint venture, ECC Infrastructure LLC, Kiewit-Alberici SIOP MACC AJV, and an TPC-NAN JV joint venture.

The contract announcement noted this work will primarily cover SIOP military construction projects at Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility (PHNSY&IMF) in Hawaii and Puget Sound Naval Shipyard (PSNS) and Intermediate Maintenance Facility (IMF) in Washington and other areas under the purview of the Naval Facilities Engineering Systems Command (NAVFAC).

SIOP is the Navy’s 20-year and estimated $21 billion plan to modernize the four government-owned shipyards that maintain the Navy’s nuclear-powered vessels including attack submarines, ballistic missile submarines, and aircraft carriers.

The contracts will last for up to eight years or a combined total value of $8 billion, whichever comes first, the Navy said. 

The service intends for the work to primarily cover SIOP work at PHNSY and PSNS, but task orders may also cover work at other sites within NAVFAC’s areas of responsibility.

Each winner was awarded $2 million to satisfy the contract’s minimum guarantee, with work expected to primarily occur in Hawaii (40 percent), Washington (40 percent), Guam (10 percent), other areas in the Pacific and Indian Oceans (five percent) and other areas under NAVFAC cognizance (five percent). The work is expected to be finished by November 2029.

$10 million in fiscal year 2022 Navy military construction funds were obligated at the time of award and future task orders will primarily be funded via the same type of funds. 

The announcement said the contract was competitively procured with six proposals received, but did not disclose the other competitor.

The Navy said the future task orders will cover construction of waterfront facilities like warehouses, dry docks, piers, and other site improvements, as well as dredging and incidental design, environmental, and other services related to the SIOP.

“These contracts will help the Navy begin design and renovation work at Pearl Harbor Naval Shipyard and Puget Sound Naval Shipyard once we’ve completed all the regulatory processes, including agency and government-to-government consultations and public engagement,” Rear Adm. John Korka, NAVFAC’s commander and the Navy chief of Civil Engineers, said in a statement.

“It involves industry partners in our planning efforts, a lesson we learned from our SIOP efforts to date. This will facilitate healthy competition and, ultimately, help us deliver the best solution we can for our Navy and our Nation,” he added.

This award comes two months after NAVFAC awarded the Honolulu, Hawaii-based WSM Pacific SIOP, A Joint Venture a $500 million architect-engineer design contract to conduct task order for Hawaii and Washington SIOP modernization projects. The company is particularly expected to perform architect-engineer services for various structural and waterfront projects (Defense Daily, Sept. 13).

In August, the Navy awarded  381 Constructors a $1.7 billion contract to build a multi-mission dry dock at the Portsmouth Naval Shipyard as part of SIOP (Defense Daily, Aug 17).