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DOD Spending Low, Corps Look for More Work in Alaska

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Published on : Nov 24, 2014

Military construction across Alaska continues to decline. Government contractors expect to keep busy for the time being with work delegated by other federal agencies.

The United States Army Corps of Engineers expects to have more than US$410 million worth of work available on at least 400 projects in the 2015 fiscal year. Chris Tew, the Alaska Contracting Division chief said that is low compared to the US$416 million spent in 2014.

The spending was till now driven by military installations constructions across the state, but the situation has changed now. Tew mentioned that the Corps of Engineers has US$144 million worth of military construction on almost 15 projects. This is a reduction of 11 per cent from the US$162 million spent in the previous fiscal year. Most of that spending was utilized at Fort Wainwright.

The Corps’ military construction budget was almost US$270 million in 2012.

According to Tew, the reduction in Defense Department work has been offset by work other federal agencies do not have the capacity to function on their own, including the Federal Aviation Administration, the National Oceanic and Atmospheric Administration and the Bureau of Land Management.

Tew said that the department had worked itself out of quite a few missions. Although most of the reduction in work can be linked to a general objective to cut the spending of the Defense Department, another reason for it is the fact there are simply fewer needs at Alaska bases.

After an explosion of investment in military structures that started in the early 2000s, the annual figures are returning to the original workload.

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