VIDEO: NAVFAC Working Out a New Way to Contract Ship Repair Services After Talks With Guam Shipyard Failed

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Guam – NAVFAC Marianas will come up with a new way to contract out ship repair services and lease out the property that the Guam Shipyard [GSY] sits on.

NAVFAC Marianas Commander Capt. John Heckmann says they decided to go back to the drawing board after negotiations with the Guam Shipyard failed. 

 

“Recently we came to a conclusion that we were reaching some irreconcilable differences on the lease terms that we the Navy and GSY just couldn’t come into agreement on frankly so we felt it was in our best interest to terminate the negotiations and backup and reconsider our strategy going forward,” said Capt. Heckmann.

NAVFAC Marianas is now considering a new way of contracting out ship repair services that would combine both the contract for repairs and the lease of the property together. Currently the Military Sea Lift Command contracts out ship repairs and the Navy leases the ship repair facility property through a lease with the Guam Economic Development Authority who in turn leases the property to the Guam Shipyard. “Instead of a long term real estate lease that would be upwards of 40 years in duration we’re going back to a shorter term contract arrangement where MSC would be contracting directly for ship repair services and part of that arrangement we would make the shipyard property government furnished property under the terms of that contract,” explained Capt. Heckmann

 This means that the Military Sea Lift command would issue a contract out for ship repairs and the property itself would just be a part of that contract rather than a separate lease. Since the contract would only be for five years at a time it would do away with long term leases of the property. However, the Navy isn’t set yet on this idea. Instead they will conduct an industry survey first to see if this idea will work. They plan on putting the survey out in mid January and once completed they will decide how to proceed but in the interim the current lease with GEDA and the Guam shipyard will remain in place. “Details are still being worked out to see is that gonna work we’re still mulling that over but that’s the concept that we’re kind of laying out to the industry right now with this market survey,” said Capt. Heckmann. The NAVFAC Commander says once they decide how to proceed the new solicitation to bid will be open to everyone including the Guam Shipyard.