U.S. and UK Secure Future of Diego Garcia with $656 Million Support Contract

The U.S. Department of Defence has awarded a major base operating support contract for the strategic Diego Garcia facility, signaling continued long-term investment in the site amid sensitive ongoing negotiations regarding the territory’s sovereignty.

The contract, awarded to the UK-US joint venture Amentum Mitie Pacific, begins with an initial $85.2m fixed-price agreement.

However, with all options and extensions included through to January 2034, the total value is expected to exceed $656m.

Strategic Continuity Amid Sovereignty Shift

The announcement comes at a critical geopolitical juncture. The UK Government is currently seeking to finalise the transfer of sovereignty of the British Indian Ocean Territory (BIOT) to Mauritius.

Under the proposed deal, the UK aims to:

• Cede sovereignty of the archipelago to Mauritius.
• Secure the future of the joint US/UK military base via a 99-year lease.
• Mitigate concerns regarding the impact of the handover on base operations.

Countering Regional Influence

While the base is jointly maintained, the U.S. military remains the primary user of the facility.

The decision to solidify long-term support services follows concerns that any handover of the territory could inadvertently benefit China, given the close diplomatic and economic ties between Mauritius and Beijing.

Contract Details

The US Department of Defence confirmed on 13 January that the contract was competitively procured, receiving three bids. The scope of work for Amentum Mitie Pacific includes:

• Base operating support services at the US Navy Support Facility.
• A mobilisation and base period.
• Seven subsequent option years and a potential six-month extension.

The Diego Garcia base remains a cornerstone of Western military presence, situated in the heart of the Indian Ocean, even as its legal status transitions from a British Overseas Territory to a leased facility under Mauritian sovereignty.

Source: Naval Technology