Defense Infrastructure: Guam Needs Timely Information from DOD to Meet Challenges in Planning and Financing Off-Base Projects and Programs to Support a Larger Military Presence

Abstract : The processes used by the government of Guam to develop the key cost estimates for planned off-base projects and programs varied depending on project or program value, complexity, and size; whether independent consultants provided input; and the extent to which DOD provided data to help set project requirements. As a result, the estimates prepared to date vary in quality, and the overall costs to develop supporting off-base infrastructure are still uncertain. These off-base projects range from large, multiyear projects, such as improving Guam's road network linking the commercial port to DOD's bases, to small, local projects, such as expanding certain fire stations. In instances where DOD was involved in clarifying or providing updated information on its buildup requirements, and the government of Guam used independent consultants to help develop and verify cost estimates, we found that the government of Guam developed cost estimates that may better reflect likely final requirements and may better justify investment decisions since they are informed by expert analysis and the most up-to-date planning information. For example, when Guam's Department of Public Works initially estimated that it needed $4.4 billion to improve the road network on Guam, it did not have the benefit of DOD's involvement. However, after the May 1, 2008, hearing and after engaging DOD in further defining buildup requirements, Guam's Department of Public Works was able to narrow the scope of the project from overall highway improvements to roadways directly affected by the military buildup. Guam hired consultants from two national transportation and engineering firms, using funding from the Federal Highway Administration, to develop and validate cost estimates based on DOD's input in clarifying requirements.