DZSP 21 Awarded $138 Million Modification for Guam Base Support

The Chantilly, Virginia, contractor secured its largest-ever award to keep running U.S. military facilities across Joint Region Marianas, lifting the deal's cumulative value to $908.1 million.

First Published: July 29, 2026, 1:23 PM ET

CHANTILLY, VIRGINIA — DZSP 21 LLC received a $138 million modification to keep running U.S. military base operations across Guam, its largest federal award ever.

The cost-plus-award-fee modification lifts the contract’s cumulative face value to $908.1 million and exercises option period six, the Navy said in a contract announcement on July 29, 2026 at 5:00 PM ET as announced on war.gov. Fiscal 2026 operations and maintenance funds of $32.7 million post at the time of award and expire at the end of the current fiscal year.

“We have worked diligently to become the Navy’s BOS contractor of choice,” the company said on its corporate website, describing a workforce it calls committed to excellence according to dzsp21.com.

The award matters beyond Guam because it funds the daily upkeep of a strategic Pacific hub that underpins U.S. force posture near the South China Sea. The work sustains housing, utilities, and port operations that keep service members and their families supported far from the mainland.

DZSP 21 LLC is a joint venture of Amentum and Parsons Corporation, headquartered at Naval Base Guam and registered in Chantilly, Virginia, according to dzsp21.com. The company provides products and services at eight locations on Guam, including Naval Base Apra Harbor, the Naval Hospital, and Andersen Air Force Base according to dzsp21.com. Base operations support covers management, port operations, ordnance handling, facility management, and utility systems according to highergov.com.

The modification benefits DZSP 21 and its more than 1,500 employees, many of them local hires whose paychecks circulate through Guam’s economy. Federal contracting sustains a large share of employment on the island, a link tracked by the Guam Contractors Association according to guamcontractors.org. The Navy gains continuity on a mission-critical contract while rival facilities firms lose a shot at one of the Pacific’s steadiest revenue streams.

The firm has received more than $2.2 billion in federal contracts since its founding in October 2004, with award totals cresting above $150 million in 2018 and $136 million in 2024 according to highergov.com. The parent contract carries a potential value of $342.2 million and a period of performance extending to January 2029 according to highergov.com. Work under this modification is expected to finish by July 2027.

Measured against peers, the award stands out for a single facilities contractor. It ranks as the 152nd Department of Defense contract awarded in Virginia in 2026 and one of only two Pentagon contracts issued nationwide that day. It surpasses the company’s previous record of $106.3 million, though it remains well below the year’s largest Navy award of $8 billion.

For the average American, the spending reflects how the Pentagon pays private firms to run overseas bases rather than staffing every task with uniformed personnel. Taxpayer dollars flow to contractors who keep water running and runways lit at installations that shield trade routes.

This has happened before. DZSP 21 has held the Guam base operations mission across a chain of re-issued contracts, including predecessors N62742-20-C-1199 and N40192-23-C-5300, the latter valued at $546.3 million according to highergov.com. Option exercises like this one serve as a routine mechanism for extending long-running service deals.

Naval Facilities Engineering Systems Command, Marianas, in Guam is the contracting activity and will oversee performance and future option decisions. A date for the next option decision has not been announced.

Guam’s role as a fortress island stretches back generations, and this award is only the latest chapter. Japanese forces seized the island hours after Pearl Harbor in December 1941, holding it until U.S. Marines and soldiers retook it in the Battle of Guam from July 21 to August 10, 1944, according to Encyclopedia Britannica. That campaign cost roughly 1,800 American lives and left Guam a permanent forward base for the U.S. military. Eight decades later, the contractors who keep those bases functioning inherit a legacy forged in that fight.

This contract represents the 1st contract awarded to DZSP 21 LLC, in 2026, bringing the company’s total contract value for the year to $138,004,329. It is also the 152nd Department of Defense contract awarded in Virginia during 2026. This is the largest contract ever awarded to DZSP 21 LLC, surpassing the company’s previous record of $106,304,464, and it is notable within the Navy portfolio. Specifically, it falls between the 2026 Navy portfolio’s year-to-date minimum of $9,046,496 and maximum of $8,000,000,000. Overall, this award was announced among 2 Department of Defense contracts issued nationwide on July 29, 2026.