Sunday, June 7, 2009

Japan may get buildup jobs: Congress debates giving access to housing projects

By John Yaukey • PDN Washington Bureau

Key House lawmakers are weighing a measure that would give Japanese contractors the same access as American firms to more than $2.5 billion in upcoming U.S. military construction projects on Guam.

It's part of a larger plan to move 8,000 Marines and their dependents from Okinawa, Japan, to Guam, starting in 2010.

The contracts are for new military housing on Guam, which looks to enjoy an economic boon from the move.

But the new construction would require expertise, workers and materials from far and wide, generating jobs wherever the bids go.

Rep. Neil Abercrombie, D-Hawaii, thinks the lion's share of those jobs should go to American companies.

"It's strange that there would be some sort of carve-out like this for the government of Japan," said Abercrombie, a senior member of the Armed Services Committee who is now running for governor. "This has been handled in offices and closed briefings."

Joshua Tenorio, who works for one of the major contractors on Guam, said local firms should be given priority for the military contracts.

"After all, the people of Guam will have to live with this change in the long term," said Tenorio, director of business development for Core Tech International.

Yet, Tenorio said it was no surprise that Japan would want a substantial part of the projects to go to Japanese firms.

"I just hope, if they were to be guaranteed a portion of the pork, that they be required to subcontract projects to small businesses on Guam," he added.

Clifford Guzman, vice president of technical operations at the Guam-based GPS Group, said his main concern is for local companies to be able to partner with the military contractors, whether American or Japanese.

"I'm hopeful that Guam-based companies will improve their competencies so they can participate in these projects," Guzman added.

Typically, military housing on an American territory is built using a 20-year-old public-private arrangement. Private firms -- usually American -- finance and build the housing in exchange for long-term maintenance and rental contracts.
Guam Task Force - Our contractor contact is a partnership between US, Japan and Guam companies, so whatever will be the outcome of this talk, we are in business.

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