Army Awards $61.5M Fort Hood Microgrid Contract
Energy-services firms bidding on federal installation work should note the sole-source structure and the planned follow-on systems at the base.
Updated on Nov. 2, 2026 in Utilities
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The Army Corps of Engineers awarded Dominion a $61.5 million contract to build a microgrid at Fort Hood, the Army base near Killeen. The system will serve about 2.9 MW of connected load, including critical facilities, and is scheduled for completion in early May 2029. Operators in the utility and energy-services sector should note that the Army is pursuing more such systems at the base.
Why it matters
The Army is pursuing microgrids to keep critical facilities powered during grid outages, with the Fort Hood system designed to run 14 days in grid independence. The project was procured through sole-source contracting under authority Congress provided for certain Energy Resilience and Conservation Investment Program projects at installations with privatized utility systems.
The Corps awarded Dominion $61.5 million, roughly double the $31.5 million project cost in 2022 budget documents. The system will serve about 2.9 MW of connected load, of which 2.12 MW is classified as critical.
The players
U.S. Army Corps of Engineers
The federal engineering agency that manages large military construction and procurement and awards contracts for installation infrastructure.
Dominion Energy
A large U.S. energy and utility company with an established microgrid and energy-services business serving government and commercial customers.
The details
The microgrid will connect to a 12.47-kV distribution system, with automated switches allowing portions of two feeders to separate during an outage. Natural gas engines provide dispatchable generation and set the voltage and frequency reference for the solar array, which will sit on canopies above parking areas behind Building 1001. During normal grid conditions, the gas engines stay disconnected while solar generation offsets demand.
Timeline
2022: Defense budget documents listed a $31.5 million Phantom Warrior project cost.
May 2025: The Corps announced the procurement and named Dominion the intended sole-source contractor.
March 2026: Dominion received a separate $16.65 million contract for a Network Enterprise Center microgrid.
October 2028: Network Enterprise Center microgrid completion is scheduled.
Early May 2029: Phantom Warrior microgrid completion is scheduled.
Market Landscape
The Fort Hood award draws on sole-source authority under the Energy Resilience and Conservation Investment Program for installations with privatized utilities. It follows a 2025 procurement announcement and a separate March 2026 Dominion microgrid contract at the same base.
Utilities and energy-services firms bidding on federal microgrid work should track the sole-source and multi-firm contract structures the Army is using. Companies that supply natural gas generation, solar integration, or distribution switching equipment may see demand signals from the planned additional Fort Hood systems.
The takeaway
Operators should watch for the additional Fort Hood microgrid systems targeted for fiscal 2030, since their scope and contracting method will signal how the Army approaches future installation energy projects. Firms in the sector can position for such work by monitoring federal procurement notices tied to the Energy Resilience and Conservation Investment Program.
What happens next
Completion of the Network Enterprise Center microgrid is scheduled for October 2028, and the Phantom Warrior microgrid is scheduled for early May 2029.
Further reading
For more on how regional power systems are changing, see Utilities coverage in Killeen.
Source note: This article includes information reported by Engineering News-Record (ENR) magazine.
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