U.S. Navy expands ship repair capacity at key Pacific hub

The U.S. Navy awarded Cayuse Native Hawaiian Veterans LLC a $249 million contract to repair Military Sealift Command vessels in Guam, the Department of War announced August 12, 2026.

The contract adds Cayuse as a new awardee under a previously established multiple-award contract vehicle, a process the Navy calls a rolling admission. Work will take place in Guam and is expected to run through November 2027, with a five-year ordering period built into the contract. Military Sealift Command, headquartered in Norfolk, Virginia, is the contracting activity overseeing the award.

The contract was set aside for companies certified under the HUBZone program, a Small Business Administration designation reserved for firms based in historically underutilized business zones. The Navy solicited the work through the Government Point of Entry website and received two proposals before selecting Cayuse. Only $3,500 in fiscal 2026 Navy operations and maintenance funds will be obligated at the time of award, covering the contract’s minimum guarantee. The Navy said all remaining funding will be released through individual delivery orders as specific repair jobs are assigned over the life of the contract.

Military Sealift Command operates a fleet of civilian-crewed ships that move military cargo, fuel and supplies for the Navy, and Guam has functioned as one of its central repair and logistics hubs in the western Pacific for decades. The command’s Ship Support Unit in Guam, based at Naval Base Guam, coordinates pier-side services, re-arming, re-supply and repair work for Military Sealift Command’s fleet. Capt. David L. Reyes, commodore of Military Sealift Command Far East, described the unit’s role during a change of command ceremony in 2025.

“As the logistical backbone of the U.S. Navy’s global reach, MSC plays a critical role in sustaining naval forces worldwide. Ship Support Unit Guam serves as a vital hub, ensuring that MSC vessels are fully mission-capable through timely maintenance, logistical support, and coordination of pier-side services,” said Reyes.

Guam Shipyard, a private facility built at the site of a former Navy repair yard that closed in 1997 under a base realignment decision, has provided the island’s primary drydock and overhaul capability since then. The facility supports visiting Seventh Fleet units, submarines assigned to Commander Submarine Squadron 15, and Military Sealift Command vessels, along with authorized repair work for Jones Act commercial ships. The nearest full-capability commercial U.S. repair facility outside Guam sits in Hawaii, more than 3,000 miles away, a distance that has shaped how the Navy plans ship maintenance scheduling across the Pacific for years.

That distance has made Guam increasingly central to Navy logistics planning as the Pentagon has shifted more attention toward the Indo-Pacific region. Capt. Robert R. Williams, a former commodore of Military Sealift Command Far East, has described Guam’s location in the western Pacific as making Naval Base Guam a vital hub for the Navy’s operations and power projection in the region.

Cayuse Native Hawaiian Veterans LLC is a Native Hawaiian Organization-owned company, a designation that allows it to compete for certain federal set-aside contracts alongside its HUBZone certification. The Navy’s announcement did not specify which Military Sealift Command vessels will receive repairs under this contract or how many individual delivery orders it expects to issue over the five-year ordering period.