FY2026 ERCIP Funding?

$723.0 million across 14 projects and design

US Army Corps of Engineers Awards $2 Billion 10-Year Pipeline

Microgrids Military & Defense News
Marin Holt
May 5, 2026
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4 minutes read

Contract Ceiling: $2 billion shared capacity
Contract Term: 10 years through April 2036
Awardees: 14 prequalified firms
DoD Contract Notice Date: April 17, 2026
FY2026 ERCIP Funding: $723.0 million across 14 projects and design

The Contract

This MATOC contract, structured as firm-fixed-price design-build and design-bid-build construction services, will run through April 16, 2036. The contract includes a three-year base period followed by seven one-year option periods. The 14 named awardees include Parsons Government Services, Hensel Phelps Construction, Tutor Perini Corporation (through its subsidiary Perini Management Services), Honeywell International, and CDM Constructors. The contract supports the Department of Defense Energy Resilience and Conservation Investment Program (ERCIP), a defense-wide military construction program. Eligible task orders encompass secure microgrids, battery energy storage systems, solar photovoltaic generation, backup generation, electrical distribution hardening, smart grid technologies, cybersecurity frameworks, water resilience systems, and energy conservation upgrades. USACE received 30 bids for this procurement.

Why It Matters

The ERCIP program aims to improve installation energy resilience, enhance physical and cybersecurity, and reduce energy costs at military bases. The FY2026 Military Construction, Defense-Wide budget proposes approximately $723.0 million for ERCIP projects and design, following $636.0 million in FY2025 funding. Priority sites mentioned under the program include US Army Garrison Ansbach in Germany, Camp Arifjan in Kuwait, and Fort Cavazos in Texas. Other candidate sites for FY2026 span Fort Bragg, White Sands Missile Range, and Cape Cod Space Force Station, with additional overseas work anticipated in Guam, Germany, and Japan. The contract’s geographic scope is global, though contract terms reference “military installations nationwide.” This procurement signals a continued focus by the Department of Defense on hardening installation energy systems against grid instability, cyber risks, and climate exposure, which are considered critical for mission readiness.

Critical Perspective

USACE has not disclosed specific details regarding the allocation of task orders, including which projects will be awarded first or the expected distribution of work between microgrids, standalone storage, and generation upgrades. The criteria USACE will employ to distribute task orders among the 14 prequalified firms also remains undisclosed. Furthermore, while five of the 14 awardees are identified as small business joint ventures, their specific names were not listed by Microgrid Knowledge. The contract terms cover “military installations nationwide,” but the specific task order-level coordination for overseas sites (OCONUS) has not been detailed.