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 Trends

FY2013 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 “snale’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


P-Q1440 SOF G3X Training Facility

Camp Lejeune

$10,000,000 Acquisition MAC-General Construction

Anticipated award 1st Qtr FY 13

NAVFAC FY13 Program


P003-Staff NCO Academy facilities

Camp Lejuene

$ 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


P 1425 Overhead Range Baffle System

Camp Lejuene

$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 Lejuene

$5465,0,000 To be advertised Sept 12

P 8144 Medical Clinic Replacement Center

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

NAVFAC FY13 Program


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: 44.3b, -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 recompete

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


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



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


PN 69458 SOF Battalion Ops Complex (4th MISOG)


PN 69277 SOF Access Control point/SOTF

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



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


PN 70751 (ACP) Brigade Complex Facility




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


P-AM10081 Replace Murray Elementary

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



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



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


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


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


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


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


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, [email protected]

• Sue Kranes, MILCON Initiative PM, 336-601-0446, [email protected]

• Paulanne Page, MILCON Specialist, 910-330-8560, [email protected]

• Carolyn Bunting, MatchForce Administrator, 910-578-2579, [email protected]

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

Acec 050112

Technology

navfac sw fy13 navfac

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navfac trendsbim

b army milcon

navfac se fy12

navfac trendsfy2013

b cuts

b base