The U.S. Navy has awarded a combined $997 million contract to ten construction firms to build and repair fuel pipelines, storage tanks, and related equipment at Navy and Marine Corps installations around the world. The indefinite-delivery/indefinite-quantity, firm-fixed-price contract covers construction, maintenance, repair, and engineering services for petroleum, oil, and lubricant facilities, with work split evenly between sites inside and outside the continental United States.
The contract was awarded competitively after the Navy received 17 offers, as reported by The Defence Blog. It is managed by the Naval Facilities Engineering and Expeditionary Warfare Center, or NAVFAC EXWC, the contracting activity based at Naval Base Ventura County in Port Hueneme, California. NAVFAC EXWC serves as the Navy's primary center for research, testing, and engineering of expeditionary logistics, ocean systems, and battle damage repair, according to a SAM.gov listing for the contracting activity.
Each of the ten companies holds a separate contract number, running from N39430-26-D-2001 through N39430-26-D-2010, and the Navy obligated a $587,438 seed task order along with $10,000 to each company at the time of award, per the same account. The recipient of that seed task order was not disclosed. The Navy can solicit bids from any of the ten firms for individual projects and will select whichever company offers the best value for a specific task order, and the overall arrangement runs through August 2031.
Who Won the Work
The ten awardees named in the contract include Bristol Engineering Services Co. LLC of Anchorage, Alaska; CMS Corp. of Bargersville, Indiana; PCI BHATE JV LLC of Atmore, Alabama; APTIM Federal Services LLC of Baton Rouge, Louisiana; Environmental Chemical Corp. of Burlingame, California; Weston Solutions Inc. of West Chester, Pennsylvania; Tepa & Pond Constructors JV of Kansas City, Missouri; Dawson Technical Inc. of San Antonio, Texas; WSP USA Government Solutions Inc. of New York, New York; and Pacific Design Builders LLC of Tamuning, Guam. Five of the ten are designated small businesses, and the solicitation set a $45 million small-business size standard under NAICS code 237120.
Two of the ten current awardees, APTIM Federal Services and Bristol Engineering Services, also held prime positions on NAVFAC EXWC's predecessor global fuel contracts in both 2015 and 2020, illustrating long-term continuity among the specialized firms the Navy relies on for fuel facility engineering. Guam-based Pacific Design Builders brings its own recent track record to the award; the company was also awarded a $297 million NAVFAC Pacific contract in July 2025 for military housing construction at Andersen Air Force Base in Guam, according to Engineering News-Record. Guam's role as a hub for both housing and fuel infrastructure underscores how central the island has become to Indo-Pacific defense logistics.
A Legal Challenge Cleared the Way
Getting to this point required clearing a formal industry objection. In September 2025, the U.S. Government Accountability Office denied a pre-award bid protest filed by Hawaii-based contractor Environet Inc., which had challenged the Navy's key personnel experience requirements and response deadlines for the underlying solicitation, N3943025R2001, according to the U.S. Government Accountability Office. That decision cleared the path for the competitive task order solicitations now governed by commercial technical standards through the contract's 2031 end date.
NAVFAC EXWC issued the original request for proposal in March 2025 under that same solicitation number. Task orders awarded under it must meet construction and repair standards set by the American Petroleum Institute and Steel Tank Institute, covering cathodic protection, corrosion control, and spill containment, per HigherGov. Individual task orders have historically ranged between $1 million and $25 million, with performance periods spanning 18 to 36 months, based on the government-vehicle history compiled by GovTribe.
Why the Navy Is Spending Nearly $1 Billion Now
The $997 million ceiling marks close to a 25 percent increase over NAVFAC EXWC's previous $800 million global fuel infrastructure contract vehicle, which was awarded across eight construction firms in February 2015. That earlier contract concentrated work primarily across five regions: the Far East, continental United States, Hawaii, Europe, and the Marianas, with the Far East and continental U.S. each accounting for 35 percent of the total, according to Department of War contract records.
The expanded funding follows a broader reorganization of how the military manages fuel. After the 2021 Red Hill Bulk Fuel Storage Facility contamination in Hawaii, Congress reorganized bulk petroleum management under the FY2022 National Defense Authorization Act, shifting global bulk fuel management responsibility to U.S. Transportation Command while pushing the Navy to modernize and decentralize its distributed fuel storage infrastructure, the Government Accountability Office found. Under that arrangement, NAVFAC EXWC handles the physical construction and structural engineering of tanks and pipelines, while the Defense Logistics Agency Energy manages the fuel itself and task order funding through Defense Working Capital Funds.
The global petroleum, oil, and lubricants program that NAVFAC EXWC manages maintains the bulk fuel systems supplying ships, aircraft, and vehicles worldwide. A separate, related architect-engineer design services contract, capped at $145 million across all task orders and covering mechanical, civil, structural, electrical, fire protection, architectural, waterfront, and environmental design work, runs on its own 60-month base ordering period and is distinct from the construction contract awarded this week. Funds tied to the current award are set to expire at the end of fiscal year 2026.
