acec 050112

NC Military Business Center

DoD Military Construction Trends

and NC Program

May 1, 2012

Agenda

• Department of Defense budget trends • Army construction and engineering trends• Army NC FY12/FY13 snapshot• Navy construction and engineering trends• Navy/USMC NC FY12/FY13 snapshot• NCMBC resources, events and questions

DoD Budget

• Budget Control Act of 2011– $487b cuts over 10 years; higher than Bush budget – Sequestration: additional $500-$600b over 10 years– “Slowdown in spending – no procurement holiday”

• Strategic guidance (Jan 2012): shapes military post- IQ/AF, post-Budget Control Act

• President’s budget submittal, FY2013: $613 billion– $525b base; $88b overseas contingency operations

DoD Construction

• NCMBC.us, “Federal Construction” page

• SAME FY2013 DoD Program Briefings– NAVFAC– Army Corps of Engineers– USAF– DoD Energy Security

NAVFAC TrendsFY2013 Program:•MILCON: $1.7b; Housing: $102m; BRAC: $165m•MILCON: Down from $3.8b in FY2012•58% Navy, 42% USMC•MIDLANT: 22% of workload, tied 1st (w/SW)•Acquisition strategy:

– “the method in the DD1391…is the way it will happen”– MACC TO’s: “if can’t negotiate to budget w/#1, go to #2”

NAVFAC Trends

Delivery method: •Design build (60%), Design bid build (40%)•Shift to more in-house (IH) design (shift AE to IH)

– Maintain/enhance core competencies– Lowest cost; reduced funding for contracted services– Reduced workload facilitates transition– Design staff stay at FY2010 levels; 5% of design IH– IH RFP prep for all DB projects; IH design some DBB

NAVFAC Trends

BIM:•Implementing “snail's pace”•Issue is Navy IT system inadequacies•Two pilots: NAVFAC SE (FY12), NAVFAC SW (FY13)•NAVFAC not only designs/acquires; must run and maintain facilities

NAVFAC Trends

Total Ownership Cost (TOC):•New tri-service tool to evaluate TOC of DB proposals•Uses automated Excel spreadsheets; replaces Energy and Sustainment technical factor•Focus on 7 facility types and major cost drivers:

– Initial design and construction; 40 year energy costs; 40 year sustainment costs

•Two FY12 pilots; implement FY13

NAVFAC Trends

Energy Technology Clearinghouse•High demand for insertion of new technologies •Streamline integration of proven technologies •Help AEs/Government to select technologies•Regionally organized based on climate zones•Clearinghouse available APR 2012 (FBO.gov) •Future tri-services/DOE clearinghouse in development

NAVFAC Trends

Overall trends•MILCON continue trend down to $1.2b to $1.7b annually (FY08 level)•OICC MCIEast is “winding down”•O&M-funded, SRM projects remain constant•Heavy focus in O&M projects on:

– Energy efficiency– Security

Remaining NAVFAC FY12

Project Location Value Acquisition Tool Key Dates

PN138 BEQ Wallace Creek Camp Lejeune

$ 27,214,000 Stand Alone Single Phase Price Performance Trade-Off

Bids due 11 May anticipate award June 12

P705/710 Camp Lejeune

$79,000,000 Stand Alone In final discussions due 4 May 12

P1285 SOF Armory Facility Expansion

Camp Lejeune

$6,670,000 BVSS, LPTA To be award late May 12

P-30 Auto Infantry Squad Battle Course

Camp Lejeune

$16,821,000 BVSS, LPTA, anticipated award early 4th qtr

To be advertised 1 May 12

Remaining NAVFAC FY12

Project Location Value Acquisition Tool Key Dates

P-Q1440 SOF G3X Training Facility

Camp Lejeune

$10,000,000 Acquisition MAC-General Construction

Anticipated award 1st Qtr FY 13

NAVFAC FY13 Program

Project Location Value Acquisition Tool Key Dates

P003-Staff NCO Academy facilities

Camp Lejeune

$ 28,986,000 To Be advertised Aug/Sept 13

P-601 Armory MCAS Cherry Point

$ 11,581,000 To be advertised Spring of FY 13

P-163 Marine Air Support Squadron Compound

MCAS Cherry Point

$34,310,000 To be advertised Nov/Dec 12

P 711- Personnel Admin Center

New River $8,525,000 To be advertised Dec 12

NAVFAC FY13 Program

Project Location Value Acquisition Tool Key Dates

P 1425 Overhead Range Baffle System

Camp Lejeune

$3,000,000 To Be advertised Oct/12

Q1218 SOF Marine Battalion Company/Team Facilities

MCAS Cherry Point

$ 53,399,000 To be advertised Sept 12

SOF Survival Evasion Resist Escape Training Facility

Camp Lejeune

$5,465,000 To be advertised Sept 12

P 8144 Medical Clinic Replacement Center

New River $21,200,000 To be advertised Spring 2013

NAVFAC FY13 Program

Project Location Value Acquisition Tool Key Dates

P-25 Replace Delalio Elementary School

MCAS New River

$23,000,000 Sometime in FY 13

USACE Trends

FY2013: “A Year of Transition” •Mission, force structure changes driving strategies•Facility Investment Strategies:

– Sustain required facilities – Dispose of excess facilities – Improve energy / cost savings – Improve facility quality – Build-out critical facility shortfalls

USACE Trends

FY2013 Program•USACE MILCON program: $4.9b (FY12: $9.1b)

– Army MILCON: $2.1b (FY12: 4.3b, -55%)– DoD MILCON: $2.4b (FY12: $3.3b, -6%)

• SOF, DeCA, DoDEA, DLA, Medical, etc.

– Overseas contingency construction -80%

•O&M funded, SRM projects: stable from FY12

USACE Trends

Energy and Environmental•Energy Initiatives Task Force (EITF):

– Huntsville District lead– Engage private capital– Supports goal, 25% renewable energy by 2025– Purchase up to $7b in energy over 30 years

•Net Zero master planning initiative: energy, water and waste

USACE Trends

Project Delivery:•Centers of standardization, MATOCs evolving•Updating standard designs for energy•Establishing IDIQs based on region, not facility type•Multiple delivery methods: DB, DBB, adapt build•Adapt build: moving to energy as driving factor•LCCA: if provide enhancements, must provide LCCA for the enhancements

USACE Trends

Project Delivery:•Life Cycle Cost Analysis (LCCA): required for all proposed enhancements•LEED: FY12 National Defense Authorization Act prohibits government from paying above silver•Congress wants competition, “Better Buying Power”

– “More SB involvement, more local contractors”– If not two bidders on task order, will re-compete

USACE Trends

“Paradigm Shift”•Surge era to post-surge era•MILCON focus to SRM focus•Energy as consideration to energy as driver•MILCON transformation to innovation•Corps as service supplier to systems integrator

Remaining USACE FY12

Project Location Value Acquisition Tool Key Dates

PN 70351 Hospital Alteration (Grow the Army)

Fort Bragg $ 57,600,000 Stand alone Construction, est. advertising date 2/24/12/

Projected award date 6/1/12 (USACE Savannah)

PN 60272 SOF Communications Training Facility

Fort Bragg $10,758,000 MATOC, adv. 4/20/12 Projected award date 7/11/12

PN 69758 SOF Brigade HQ Facility/95th CA

Fort Bragg $19,000,000 MATOC adv. 4/13/12 Project award date 7/4/12

PN 71224 SOF Admin-Company Ops Ph 2/4th MISOG

Fort Bragg $ 26,000,000 MATOC adv 3/8/12 Project award date 5/28/12

Remaining USACE FY12

Project Location Value Acquisition Tool Key Dates

PN 60821 SOF Squadron HQ Addition

Fort Bragg $11,000,000 MATOC adv. 1/18/12 Projected award date 5/20/12 (USACE Wilmington)

PN 76364 SOF Battalion Ops Complex

Fort Bragg $41,000,000 MATOC, adv. 4/13/12 Projected award date 7/7/12

PN 69458 SOF Battalion Ops Complex (4th MISOG)

Fort Bragg $23,478,000 MATOC adv. 2/28/12 Project award date 6/7/12

PN 69277 SOF Access Control point/SOTF

Fort Bragg $ 2,300,000 MATOC adv 4/9/12 Project award date 6/14/12

Remaining USACE FY12

Project Location Value Acquisition Tool Key Dates

PN 43335 NCO Academy Fort Bragg $42,000,000 MATOC Adv. 4/15/12 Projected award date 5/30/12 (USACE Savannah)

PN 69835 Unmanned Aerial Vehicle Maintenance Hangar

Fort Bragg $54,000,000 MATOC, adv. 4/30/12 Projected award date 6/30/12

PN 70751 (ACP) Brigade Complex Facility

Fort Bragg $18,000,000 MATOC adv. 3/15/12 Project award date 7/15/12

Remaining USACE FY12

Project Location Value Acquisition Tool Key Dates

PN 76373 SOF USASOC HQ Annex/USASOC

Fort Bragg $12,000,000 MATOC adv. 2/3/12 Projected award date 5/25/12 (USACE Wilmington)

P9770500 DDESS Facility Fort Bragg $ 3,138,000 MATOC, adv.6/1/12 Projected award date 8/30/12

P-AMD02051, Replace McNair Elem School

Fort Bragg $23,086,000 MATOC adv. 6/1/12 Project award date 8/30/12

P-AM10081 Replace Murray Elementary

Fort Bragg $22,000,000 MATOC adv 6/1/12 Project award date 8/30/12

Remaining USACE FY12

Project Location Value Acquisition Tool Key Dates

P80087 General Purpose Warehouse

Fort Bragg $13,800,000 MATOC adv. 7/2/12 Projected award date 8/31/12 (USACE Savannah)

P 371417, Transpired Solar Collectors

Fort Bragg $ 1,500,000 MATOC, adv.5/11/12 Projected award date 7/18/12

Unrestricted DB/DBB MATOC

UNK $499,000,000 Adv. 7/1/12 Project award date 9/30/12

Two 8(a) DB SATOC UNK $100,000,000 adv. 2nd QTR Project award date 8/30/12

Remaining USACE FY12

Project Location Value Acquisition Tool Key Dates

6 Unrestricted Full Service AE Design

UNK $12,000,000 UNK

Two restricted Full Service AE Design

UNK $ 4,500,000 UNK

Four Unrestricted Full Service Installation Specific AE Design

UNK $ 12,500,000 UNK

One SB Environmental MATOC

UNK $ 45,000,000 UNK

USACE FY13 Program

Project Location Value Acquisition Tool Key Dates

P-69287 SOF Battalion Operations Facility

Fort Bragg $ 40,481,000 March 2013 anticipated award date

P-69493 SOF Sustainment Brigade Complex

Fort Bragg $ 24,693,000 March 2012 anticipated award date

P-69382 SOF Civil Affairs Battalion Complex

Fort Bragg $31,373,000 March 2012 anticipated award date

P-65052 SOF Support Addition

Fort Bragg $3,875,000 March 2012 anticipated award date

USACE FY13 Program

Project Location Value Acquisition Tool Key Dates

P-55121 Aerial Gunnery Range

Fort Bragg $ 42,000,000 Dec 2012 anticipated award date

P78499 Infrastructure Fort Bragg $ 30,000,000 May 30 2013 anticipated award date

P-80112 Unmanned Aerial Vehicle Complex, Phase 2

Fort Bragg $31,373,000 February 2013 anticipated award date

Agency FY13 Program

Project Location Value Acquisition Tool Key Dates

Replace Pipeline DLA Seymour Johnson AFB

$1,850,000

TRICARE Management Activity Medical Clinic Replacement

Seymour Johnson AFB

$53,600,000

Senior Leader Perspective

Dorothy Robyn, Deputy Under Secretary of Defense•Facility energy strategy: reduce demand, expand renewable supply, improve energy security•DoD installations, test-beds for energy technologies

– Microgrids, efficient integrated buildings, nano-technology HVAC, on-site generation

•DoD taking new technology risks ESCOs will not•Civilian renewable energy siting challenges

Senior Leader Perspective

USACE and Air Force•3 good things:

– SRM will remain 90% of current program– Major increase in investment in energy projects– Barracks and QOL are still priorities

•Worries– Cost, government buildings 35% higher than civilian– Selecting right technologies – and maintaining them

Senior Leader Perspective

Rear Admiral Mossey (NAVFAC)•3 good things:

– SRM will remain 80% of current program– Major increase in investment in energy projects– MILCON is down – but $1.75b is still huge for Navy

•Worries– Government may not be ready to own technologies

that industry can provide, or maintain the facilities

Upcoming NCMBC Events

• Consolidated Construction Teaming Forum (8 MAY)• Defense Contractor Academy (JUN – AUG)• NC Federal Environmental Symposium (13 JUN)• NC Federal Advanced Technology Symposium (17 JUL)• Defense Trade Show (7 AUG)• NC Aerospace Supplier Conference (14 AUG)• 2012 Federal Construction Summit (10-11 OCT)

Contact Information

• Scott Dorney, Executive Director, Phone: 910-678-0190, dorneys@ncmbc.us

• Sue Kranes, MILCON Initiative PM, 336-601-0446, kraness@ncmbc.us

• Paulanne Page, MILCON Specialist, 910-330-8560, pagep@ncmbc.us

• Carolyn Bunting, MatchForce Administrator, 910-578-2579, buntingc@ncmbc.us

NCMBC Resources

NCMBC Resources• Business Development Team• MILCON Specialists• Websites: MatchForce.org, ncmbc.us• Federal construction page (ncmbc.us)

– Market entry checklist– Capability matrices (contractor, designer, supplier)– Spreadsheets (Forecast, MACC/MATOC, Primes)– Current bidding projects list– Summit, other event materials

• Federal Construction Events

Checklist

Presentations

Spreadsheets

Forecast Spreadsheet

Justification Data

Future MILCON Projects

Current Prime Contracts

Current Multiple Award Contracts

Current AE IDIQ Contracts

Construction Opportunities

in NC - Updated Daily

Pre-Award Support and Resources

• Notification to Contractors of Project Forecast• Networking, Team Building and Strategic Planning• Monitoring & Notification of Project Solicitations &

Opportunities• Solicitation Requirement Interpretation & Support• Proposal Support & Review• Proposal Revision and Clarification Support• Debriefing Support for unsuccessful offers

Post Award Support and Resources

•Project Management Team Execution Training & Support– FARS/DFARS and Contract Requirement Interpretation– Partnering and Client Communications– Resources for subcontractors and vendors– Quality Control Plans & Program Execution Support– Safety Plans & Program Execution Support– Submittals & Project Deliverable Requirements– Schedule Development & Issues– Schedule of Values Development– Invoicing, Change Orders, Certified Payroll & Project Admin Support