# Army Accelerates Military Construction

In October 2026, the U.S. Army launched a military construction reform initiative targeting delivery up to 50% faster and at 30% lower cost through greater use of design-build, modular construction, and expanded Other Transaction Agreement (OTA) authority. The signal identifies new federal facility construction and repair opportunities, including $315 million in Coast Guard work at Base Kodiak, Alaska. For contractors, faster delivery and alternative contracting approaches may bring more work but also increase schedule, design, and cost exposure, with fewer standard FAR protections under OTAs.

- Contractors pursuing military construction and repair work should prepare for accelerated schedules and assess their capacity to manage design-build delivery and associated design and cost risks.
- Firms considering OTA work should evaluate and negotiate the terms carefully, since these agreements may provide fewer standard FAR protections.
- Design and construction firms can consider forming design partnerships to support design-build opportunities; the signal specifically identifies $315 million in Coast Guard work at Base Kodiak.

**Jurisdictions:** federal
**Industries:** Construction & Infrastructure, Defense & Military
**Topics:** Physical Infrastructure, Contracting Vehicles
**Published:** November 04, 2026

### Government Entities
- U.S. Army (Army)
- U.S. Department of Defense (DoD)
- U.S. Coast Guard (USCG)

### Vendors
- Perini Management Services (awardee)
- Tutor Perini (awardee through subsidiary)
- Granite Construction ()

### Key Quotes
> Yes, design-build shifts both the design and the construction risk onto the contractor. That said, the Army would still set the basic elements required for the project, so the Army does keep some of the design risk, and still may hire a design consultant to ensure that the project meets the Army's essential purpose.
> — Douglas Proxmire, Partner

> Streamlining procurement does not eliminate construction risk.
> — Trent Cotney, Partner

> This new authority is much broader, allowing MILCON OTAs for repair and construction projects for facilities, including the planning, design, engineering, prototyping, piloting and execution of such repair and construction projects.
> — Stephen Tobin, Government Contracts Partner

### Sources
- [Dotted Line: Faster military construction creates opportunities, risks for contractors](https://finance.yahoo.com/small-business/articles/dotted-line-faster-military-construction-185100840.html) - Yahoo Finance