The Guam Public Utilities Commission on Oct. 30 approved GWA's award of the Pressure Zone Realignment Phase 2 construction contract to Sumitomo Mitsui Construction Company, with a base bid of $23,242,777 and an increase for phase 2b to $8,286,659.

ALJ Fred summarized the procurement: the IFB produced Sumitomo Mitsui as the lowest responsible bidder; most of the overall contract (over $15 million) is funded through grant awards, and the additional phase 2b funding is financed with bond and internal funds. The project covers pressure reducing/sustaining valve stations, flow meters, electrical infrastructure and associated site work at 16 island sites. The ALJ found the project necessary to create pressure zones, enable district metering and reduce non‑revenue water.

Fred recommended approval of the contract and the change order for phase 2b as prudent and necessary. He advised against approving the full 10% contingency requested by GWA at this time, noting GWA has authority under its contract protocol to incur up to 20% over an approved amount without prior PUC approval. Commissioners discussed contingency calculations and funding allocations between grant and bond funds.

The commission approved the contract award and change order; the motion carried unanimously. The ALJ's report and the PUC record emphasized that the project is critical to pressure control, will enable district metering for leak detection and is expected to be completed by mid‑2027 under the current schedule.