The $33.2-billion price tag for implementing the Pentagon’s current Base Realignment and Closure (BRAC) round is 48% higher than the Dept. of Defense initially anticipated, says Wayne Arny, deputy undersecretary of defense. The factors behind the increase include the effect of inflation and the construction of additional facilities, Arny told the House military construction appropriations subcommittee at an April 22 hearing. For the Army, 2009 is the largest year of the current BRAC round, with 96 contracts slated to be awarded, said Keith Eastin, an assistant Army secretary. Fiscal 2010 will be the current closure-and-realignment round’s final year. Past years’
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.