$249M ship repair contract awarded to Guam company

By Pacific Island Times News Staff

The Military Sealift Command in Norfolk, Virginia, has awarded a $249 million ship repair contract to Blue Steel Marine LLC, a Guam company based in Talofofo.

"This action represents a rolling admission to a previously awarded multiple-award contract. Work will be performed in Guam and is expected to be completed by November 2027," the Department of War said.

The contract includes a five-year ordering period. The U.S. Navy's fiscal 2026 operation and maintenance funds in the amount of $3,500 will be obligated at the time of award and will expire at the end of the current fiscal year. All other funding will be provided on individual delivery orders as they are issued.

Krystle Merfalen, Blue Steel’s founder, said the award recognizes positions the company as a prime vendor with a direct vehicle to contribute to fleet readiness and vessel sustainment in the Pacific theater.

"With 14 years specifically in ship repair, I've worked my way up in an industry where women are rarely represented, especially in leadership roles," Merfalen said. "This award is the result of years of experience, resilience, and building a team that understands the level of excellence required to support Department of Defense operations."

Born and raised on Guam and as a military daughter and spouse, Merfalen has long understood the island's critical role in U.S. military logistics, maritime and readiness operations.

Her career began on the ground, gaining technical expertise, managing repair projects, and leading teams in demanding shipyard and maritime environments.

Over time, she built a reputation for reliability, precision, and leadership, ultimately founding Blue Steel Marine to bring those same standards to a locally driven company.

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"It took years of learning the industry, the trades, leading teams, solving real problems in the field, and earning trust within my team and with all stakeholders,” Merfalen said.

“Being from Guam, it means even more to now lead a company that contributes directly to our island's role in national defense and to be able to truly give our people rewarding and fulfilling opportunities here at home,” she added.

Merfalen said the award highlights the growing strength of locally owned businesses in Guam's maritime sector. The Western Pacific has become an increasingly demanding theater for U.S. naval operations, and local capacity matters.

"I hope this shows that there is space for our people in this industry and that local talent here in Guam can compete at the highest level," she said.

"We're proving that world-class ship repair can be done right here at home at the hands of our people with like-minded partners in the industry. And we are proud to play a direct role in keeping America's fleet ready,” she added.

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