Military Construction

The Senate Appropriations Committee proposed $173.2 billion in FY 2027 base discretionary funding, including $3.7 billion for VA construction and $28.6 billion for Department of War military construction and family housing. The proposal points to potential construction and health IT demand, but it is not enacted and does not establish specific solicitations or awards.

The U.S. Army’s October 2026 construction reform initiative aims to deliver projects up to 50% faster and at 30% lower cost through design-build, modular construction, and expanded OTA use. The shift could create opportunities in military construction and repair—including $315 million in Coast Guard work at Base Kodiak—while increasing contractor schedule, design, and cost exposure.

Granite Construction reported a record $7.5 billion backlog and third-quarter revenue growth of 23%, with approximately $1.3 billion tied to federal work. The contractor expects to pursue billions in federal opportunities over the next several years, including military construction using flexible delivery methods authorized by the 2026 NDAA.

The USACE Los Angeles District will host November industry days in Las Vegas and Long Beach to outline five planned OTA design-and-construction opportunities at Air Force and Space Force installations. Contractors can learn about anticipated two-step qualifications and pitch processes and delivery methods, but formal solicitations will control requirements; some networking and feedback sessions require separate submissions or RSVPs.

The U.S. Navy has awarded a **$78 million** contract to Conti Federal Services LLC to build ammunition storage and maintenance facilities at Naval Air Station Sigonella, Italy. The investment, funded by fiscal 2024 military construction appropriations, significantly enhances military logistics and readiness in the Mediterranean region.

The Department of War has awarded significant contracts totaling billions to various defense sectors. Key highlights include Lockheed Martin's $53.9 billion PAC-3 missile contract and the Air Force's $1.84 billion contract for advanced targeting systems, presenting vast opportunities for industry stakeholders.

The 2027 NDAA progresses with nearly $1.9 billion slated for military enhancements in Guam. This funding prioritizes key infrastructure, missile defense, and housing projects, opening a range of contracting opportunities for GovCon firms involved in construction and military support services.