Business in Guam just got tougher, MilCon awards coming, and a whole lot more

Navy awards fiscal 2021 MilCon projects; a slew of work to follow

The latest awards for Marine Corps Base Camp Blaz in Guam include two from fiscal 2021 military construction funding, and one from “mamizu money,” or Government of Japan funding. Naval Facilities Engineering and Systems Command in Hawaii made all three awards.

• Chugach Consolidated Solutions LLC headquartered in Anchorage, Ala., was awarded an $8.3 million firm-fixed-price contract for construction of a combat training facility at Marine Corps Base Guam, funded by 2021 Navy construction funding.

The contract included three option items that are being exercised at the time of award and is included in the $8,296,583 award, according to an Aug. 13 release from the U.S. Department of Defense. 

• According to an Aug. 19 release from the U.S. Department of Defense, the Cadell Construction-Nan Inc. joint venture was awarded a task order for a $36.57 million design build a warehouse at Camp Blaz to support distribution management, such as supplies and food services, to be completed by November 2023.

The award is through a multiple award construction contract or MACC and fiscal 2021 Navy construction funding.

The task order has one unexercised option, which could increase the cumulative contract value to $38.31 million, and provides for furniture, fixtures and equipment. Four proposals were received.

• The Black Construction Corp.-Tutor Perini Corp. joint venture was awarded Aug. 18 a $98.29 million firm-fixed price contract for the construction of bachelor officer quarters at Camp Blaz, funded by mamizu money.

That award also has an option for furnishing.

Work is due to be completed by May 2024, according to an Aug. 18 release from Naval Facilities Engineering and Systems Command Pacific in Hawaii. 

While NAVFAC Pacific said in the release that this award would be the last of 18 awards for fiscal 2021 funded by mamizu money, the contracting community expects additional awards for Guam in this calendar year, according to Journal sources.

Some Requests for Proposals are set aside for companies in the mamizu MACC. Those companies are the Black Construction-Tutor Perini JV, the Hensel Phelps-Shimizu Joint Venture, the Aptim Construction JV, the CWI-Weitz JV, the Gilbane SMCC ECC LLC group, the Caddell-Nan JV and the JV of Core Tech International-Hawaiian Dredging Construction Co. and Kajima Corp. Caddell Nan was awarded 2020 construction of bachelor enlisted accommodation – to be built in three multi-story towers and the Core-Tech-HDCC-Kajima JV was awarded construction of five BEQ towers in the first week of August (See www.mbjguam.com).

Upcoming bids for the mamizu MACC for Camp Blaz include:

• Construction of dining facilities, due Aug. 25 and 
• “Construction of electronic and communication facilities,” due Sept. 2.

According to Journal files, the first mamizu-funded contract was awarded a decade ago, in August 2011.  

The Japanese government agreed to make $2.8 billion in direct payments to help fund the Marine relocation from Okinawa to Guam. The Japanese also agreed to allocate $3.29 billion for housing and utilities construction in the form of low-interest government loans through the Japanese Bank of International Cooperation.

Among other deadlines:

• Bids were due Aug. 19 for ammunition storage buildings – the “construction (design-bid-build) of 12 new standard Hayman earth covered magazines, two partially covered concrete pads and an ammunition reworks and overhead shop to meet the Marine Corps mission” at Andersen Air Force Base – a single firm fixed price contract.

The Marine Corps Aircraft Wing is due to be located at Andersen, according to Journal files.

• Bids are due Sept. 16 for a design-build award for “consolidated headquarters” for the Marine Base. “Support facilities include utilities, site improvements, emergency generator, access roads, parking and incidental related work,” according to the Request for Proposals.

Projects out to bid that could be awarded are currently estimated at between $300 million to $500 million, according to Journal sources. The timing of awards would also depend on fiscal 2022 funding, but the funding and projects also include those that were originally put aside for the U.S.-Mexico barrier wall, the sources said.

Already identified as coming from fiscal 2022 MilCon funding is the headquarters on Camp Blaz for the infantry battalion. Bids were due July 22, though a MACC contract. 

Phase 2 of the munition storage at Andersen (eight new igloos) is due Sept. 21 and is also from fiscal 2022 MilCon funding.

Other contracts include construction of fuel storage buildings at Naval Base Guam, due Sept. 28, and custodial services at multiple military locations – to include Camp Blaz, due Sept. 14.

COVID updates around the region:

Guam businesses must ensure customers and staff are fully vaccinated

Guam’s new restriction of movement COVID guidelines give businesses a matter of hours to become compliant – with new regulations announced mid-afternoon of Aug. 20 and due to take effect 8 a.m. the morning of Aug. 23. Guidelines may be issued as late as Aug. 21.

Restaurants, bars, clubs, gyms, fitness centers, dance studios, movie theaters, food courts, sporting events, boat cruises and “other events to use the facilities or enter the premises” will be responsible for ensuring their guests and patrons are fully vaccinated.

Churches were not specifically mentioned.

Guests must show vaccination cards or have a copy of them on their phone. Guam’s Department of Public Health will have the ability to check on patrons and impose fines as will the Guam Police Department.

Employees of establishments have until Sept. 27 to get fully vaccinated.

As to tourists and visitors who are unvaccinated, Arthur San Agustin, director of DPHSS said, “They can still do takeout.”

Gov. Lourdes A. Leon Guerrero would not commit to a time frame, saying, “There is no end date right now. We’ll look at the results in the next two or three weeks and we’ll go from there.” 

The Northern Mariana Islands Commonwealth Health Care Corp. announced Aug. 19 that effective Aug. 20 “all inbound travelers are required to quarantine in a designated government facility for five days.”

All travelers will be tested on arrival and on their fifth day in quarantine. “Travelers will be released after they test negative for COVID-19 on the fifth day. All travelers who test positive for COVID-19 will be isolated in the designated government facility for 10 days,” a release said. All pending home quarantine applications will be denied,” the CHCC said.

Essential workers requesting entry into NMI must complete the essential worker request section within the online CNMI Mandatory Declaration Form at least three days prior to arrival. The request will be reviewed by the CNMI Territorial Health Official for a decision. Not all requests are automatically approved, the CHCC said. See https://governor.gov.mp/covid-19/travel for further details and applications.

The CHCC announced additional COVID positive cases – three on Aug. 20, one on Aug. 19 and one on Aug. 17, all identified through travel screening. To date the NMI has seen 120 positives from the U.S. mainland, 43 from a U.S. territory and 24 from an international destination, according to its Dashboard. CHCC identified 187 as travelers of its 224 positives.

Esther L. Muna, CEO of the CHCC, said at an Aug. 20 news conference, “It’s unfortunate.” She was speaking about breakthrough cases, or individuals testing positive who are vaccinated. “The concern we have is that they are out there in the community. There are still about 11,000 people in the NMI that are not vaccinated,” she said. “It’s a very low rate on Tinian; Saipan and Rota are over 70%.” Muna said in addition children are not vaccinated, though for children she said, “We have a testing plan that is already in effect.”

Those testing positive are mainly residents returning from the U.S., she said. “There was one from the Philippines.” The action was partly in response to the increase to daily United Airlines flights to Saipan, Muna said (See below).

Warren Villagomez, chairman of the COVID-19 taskforce told the Journal that testing arrivals had already required additional resources. “We are increasing lab technicians as we speak, as well as swabbers,” he said.

Social Security beneficiaries in the Federated States of Micronesia now have until Sept. 30 to complete mandatory COVID-19 vaccination, as opposed to the original date of Aug. 30.

Both the CHCC and the Guam Department of Health and Social Services confirmed 18 they are offering COVID booster shots to the immunocompromised.

GEDA confirms business grants and total loan amount

The Guam Economic Development Authority’s chairman, David J. John, announced at the Aug. 19 board meeting that Gov. Lourdes A. Leon Guerrero has authorized all GEDA’s grant programs to move forward, including the commercial rent assistance grant and the small business pandemic assistance 2021 grant, which was allocated funding of $20 million.

John also expressed the need for an indigenous community grant and said GEDA is involved in sourcing that for the island.

NMI businesses close e-gaming locations

Following the closure of the Saipan Country Club by MP Holdings LLC, Mariana Entertainment LLC announced Club 88 in Garapan will close on Aug. 27. Club 88 holds 73 of the 199 e-gaming licenses in the Northern Mariana Islands. MP Holdings also operates Saipan Vegas.

The closures are in response to a law levying additional fees for each e-gaming terminal which would include the greater of $2,500 or 15% of net gaming revenue, in addition to gross revenue tax of 5%. 

Both operators filed a complaint with the Superior Court earlier in August, alleging the law was invalid, due to a conflict of interest through the family relationship of the author of the legislation and the CEO of Imperial Pacific International, according to media reports.

A small break for Guam power consumers

The Guam Power Authority said Aug. 19 that “pandemic assistance” of $15 million will be allocated to offset rate increases passed on to consumers due to the increase in the Levelized Energy Adjustment Clause.

Using an example of 1,000 kWh, prior to the $15 million allocation – authorized by Gov. Lourdes A. Leon Guerrero, the increase would have been 28.7% for residential consumers. 

Using the same example, residential consumers will see an increase of 27.5%.

EITC approvals received for Guam and the Northern Mariana Islands

Guam and the Northern Mariana Islands received approval of payments for Child Tax Credits for residents, with both jurisdictions receiving $300,000 for expenses for implementation. Credits will vary depending on the age of children.

United Guam-Saipan flight frequency increased. See below:

United also confirmed other regional flight frequencies for August and September:

Daily to Honolulu and Narita, five times weekly in August, increasing to daily in September, Guam to Palau, Pohnpei, Chuuk and island hopper destinations weekly, and Guam to Yap monthly.

And also …

Gov. Ralph DLG. Torres announced Senate Floor Leader Sen. Vinnie F. Sablan as his running mate and candidate for lieutenant governor, and the formation of their campaign leadership. Sablan is also chairman of the 22nd Saipan and Northern Islands Legislative Delegation.

The Northern Mariana Islands Department of Finance Group Health & Life Insurance Trust Fund announced Aug. 18 the selection of Aetna Life Insurance Co. as the sole health carrier for the NMI government.

Gov. Lourdes A. Leon Guerrero signed into law Aug. 18 a bill that will charge GTA $100,000 per fiber optic cable. The Additional funding will support costs for utilities on Guam Land Use Commission properties.

In addition, a new article added to the Guam Code annotated will exempt medical equipment and telemedicine technology form business privilege tax and use tax.

The Northern Marianas Department of Finance will “go live” Oct. 1 with a paperless workflow, to include its vendor purchase orders and ACH payments. “We have a vendor self-service portal” David DLG Atalig, secretary of the Department of Finance said at an Aug. 8 news conference. “Their email is their [purchase order],” he said. We don’t need actual paper.”

The Federal Employees Health Benefit Program has renewed withCalvo’s SelectCare, underwritten by Tokio Marine Pacific Insurance, and has finalized benefits and rates with the Office of Personnel Management for the 2022 calendar year.

For your diary:

The Mariana Islands Nature Alliance Green Gala, Sept 10, Aqua Resort Saipan, poolside from 6 p.m. to 10 p.m. Tickets of $100 include a drink and a door prize raffle.

Contact (670) 233-7333 for tickets or cash or in-kind sponsorship, or email [email protected] All preventative measures as recommended by the COVID 19 Task Force and CDC will be observed, according to MINA. 

The 17^th Annual LifeWorks Guam “Out of the Darkness, Our Community Walks, Candlelight Memorial Service” in memory of loved ones lost by suicide – Sept. 25, Micronesia Mall.

LifeWorks Guam joins its international partners in observance of September as Suicide Awareness Month. Advocacy has begun and will continue through September. LifeWorks Guam is seeking sponsorships for the event. For details, contact Marie V. Halloran at [email protected]. mbj