The Defense Logistics Agency announced on July 23 that the Guam Physical Distribution Operations contract was awarded to Eagle Support Services Corp.
Eagle has partnered with Kellogg Brown & Root Services Inc. of Arlington Va. as its principal subcontractor for the contract which has a first contract period of $1.78 million.
The agency depot — which will operate as the Defense Distribution Depot Guam Marianas — will be located at the Navy base and will serve as a stock point for the agency. The agency will provide support in Guam worldwide and to homeported vessels according to a July 30 release from the agency.
“DDDGM will replace many functions now provided by the Supply Annex of Raytheon Technical Services Guam’s Base Operating Services Contract ” the release said.
In an exclusive interview with the Journal Philip M. “Phil” Dodderidge vice president of business operations for Eagle confirmed to the paper that opportunities will exist for local businesses to subcontract to Eagle.
While he declined to furnish specifics Dodderidge said those he looked forward to talking to included companies in the trucking and environmental support services fields.
Following meetings with the Defense Logistics Agency he will be making a first trip to Guam in mid-August “To get things rolling.” Full performance of the contract will begin on Oct. 1.
Staffing and alliances for the project had proved valuable to the company he said. “All the people who will be working on the [Guam] DLA project have prior DLA experience or prior Navy experience. That allowed us to succeed with DLA.”
Dodderidge said Eagle was very pleased to have the opportunity to come to Guam and equally pleased with what its research had shown both about the future of Guam and the island as a place to do business.
“We firmly believe the business climate in Guam is going to get better and better because of the [federal] government’s position. It’s going to be a forward position — it’s a strategic opportunity for us.”
He said he had heard positive things about Guam and Eagle personnel were looking forward to being active members of community. “We’re excited to come out to Guam.”
Dodderidge and E. Michael Leonard project general manager for KBR operations in Guam jointly indicated to the Journal that they have scheduled discussions with the International Brotherhood of Electrical Workers which represents many of the workers in the supply complex. Through Local Union 1260 in Honolulu the union has a chapter at Raytheon.
The release also said “Interviews with current supply workers will be scheduled at the earliest opportunity.”
Both companies said in the release that a primary objective of the transition was to “avoid interference with ongoing operations while conducting an inventory of all material prior to the turnover.”
Eagle based in Huntsville Ala. and founded in 1996 is well known to the military.
It provides logistics services for military equipment (ground and aviation) including maintenance modification repair of equipment supply and transportation training and development. Eagle is a partner with an Alaska native firm in a joint venture in support of National Guard activities. That joint venture operates under Bowhead Eagle Corp LLC. According to the Eagle Web site Eagle has a wholly owned subsidiary Eagle-Deutschland GmbH based in Kaiserslautern Germany.
The company provides warehouse support to the Army both at Fort Riley Kansas and at Fort Stewart Ga. Dodderidge said “We are primarily known as an Army contractor. We are extremely happy that we get to expand our horizons.”
Eagle had revenues of about $17 million in 2003. He said “This year we expect to be over $28 million. We’re a growing company ” he said.
Kellogg Brown & Root is one of six bidders for the Guam Navy Base Operating Support services contract due to be awarded in December.
The company is reportedly one of two leading bidders on that contract.
KBR has also been awarded a $100 000 delivery order as part of a re-awarded $500 million Naval Facilities cost-plus-award-fee indefinite quantity indefinite contract for emergency construction capabilities.
Post-typhoon work on Guam for the Navy was under a similar contract.
Options of the construction-capability contract which extend its scope to $500 million are for four years after a base year and include provision of mobilizations services for personnel equipment and material in support of Naval Construction Forces set up and operation of a Material Liaison Office at a deployed site and possible participation in military exercises. Work covers supervision equipment materials labor travel and the support for response to civilian construction contract capability. The construction and related engineering and services would be in response to natural disasters humanitarian assistance conflict or projects with similar characteristics. The worldwide contract is expected to be completed by July 2005 although options may extend the contract to July 2009.
Houston-based KBR a subsidiary of Halliburton Co. has drawn national media attention following criticism of its support of U.S. military forces in Iraq. Controversy relates to alleged fuel-delivery overcharges in Iraq. KBR testimony before Congress in mid-July was positively received according to Journal sources. KBR has faced other challenges in Iraq — 39 employees have been killed in the country with several others still missing.
Dodderidge said the company was pleased to be working with Kellogg Brown & Root on the DLA contract.
“Despite all the negative press KBR has a real reputation for providing real service when it’s needed. We’ve been strategically aligned with KBR on a number of proposals and we’re bidding other projects with them.” Eagle is providing warehouse operations for KBR in Iraq. MBJ