Guam - The Navy and the Guam Shipyard have not been able to reach an agreement on the terms and conditions of a long term lease of 49 acres of Navy property and operation of a ship repair facility.

"We appreciate the hard work and commitment of the professionals at the Guam Shipyard," said Naval Facilities Engineering Command (NAVFAC) Pacific Vice Commander Capt. Pete Lynch. "We value their efforts to try to arrive at common ground on a lease, but unfortunately we could not agree to final terms and conditions."

The Navy will proceed with a new procurement action to identify the most efficient and cost-effective means to support the military's ship repair requirements.  The Navy continues to extend the current interim lease with the Guam Shipyard facility on a hold-over agreement on a month-to-month basis. According to NavFac the Navy plans to announce a market survey within the next few weeks, which could allow GSY, GEDA and other ship repair professionals to compete for future ship repair work for Guam.