US Defence Dept. budgets for US$4b spend on Air Force base improvements

The US Air Force has dangled a US$4 billion carrot in front of US contractors that are bidding for refurbishment contracts on bases around the world.

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By  Eudore Chand Published  November 27, 2003

The US Air Force has dangled a US$4 billion carrot in front of US contractors that are bidding for refurbishment contracts on bases around the world. The work, which is mainly associated with improving the environment of bases, includes demolition, repair, emergency response, operations and maintenance opportunities, according to an Air Force spokesperson. Work on all contracts is to be completed by November 2008. “The Air Force can issue delivery orders totalling up to the maximum amount indicated above (US$4 billion), though actual requirements may necessitate less than this amount,” each of the contract announcements said. As many as 22 US companies, including Jacobs Engineering Group and Tetra Tech, are expected to bid for the for construction and engineering work, the Defense Department said last week. Michael Bieber, vice president for investor relations at Tetra Tech, said he understood from Air Force officials that US$4 billion represented the total combined potential value of the newly awarded contracts. But he said he understood the entire sum could go to any one of the contractors or to any combination of them. Air Force contracting personnel could not immediately be reached for comment. The Air Force Center for Environmental Excellence said it anticipated making up to three additional contract awards next month. In a note on its Web site, it said the value of the work could rise to US$10 billion.

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