1. NC Military Business
Center
DoD Military
Construction Trends
and NC Program
May 1, 2012
2. 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
3. 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
4. DoD Construction
• NCMBC.us, “Federal
Construction” page
• SAME FY2013 DoD
Program Briefings
– NAVFAC
– Army Corps of Engineers
– USAF
– DoD Energy Security
5. 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”
6.
7. 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
8. 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
9. 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
10. 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
11. 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
12. Remaining NAVFAC FY12
Project Location Value Acquisition Tool Key Dates
PN138 BEQ Wallace Creek Camp $ 27,214,000 Stand Alone Single Bids due 11 May
Lejeune Phase Price anticipate award
Performance Trade- June 12
Off
P705/710 Camp $79,000,000 Stand Alone In final
Lejeune discussions due 4
May 12
P1285 SOF Armory Facility Camp $6,670,000 BVSS, LPTA To be award late
Expansion Lejeune May 12
P-30 Auto Infantry Squad Camp $16,821,000 BVSS, LPTA, To be advertised
Battle Course Lejeune anticipated award 1 May 12
early 4th qtr
13. Remaining NAVFAC FY12
Project Location Value Acquisition Tool Key Dates
P-Q1440 SOF G3X Training Camp $10,000,000 Acquisition MAC- Anticipated
Facility Lejeune General Construction award 1st Qtr FY
13
14. NAVFAC FY13 Program
Project Location Value Acquisition Tool Key Dates
P003-Staff NCO Academy Camp $ 28,986,000 To Be advertised
facilities Lejuene Aug/Sept 13
P-601 Armory MCAS $ 11,581,000 To be
Cherry Point advertised Spring
of FY 13
P-163 Marine Air Support MCAS $34,310,000 To be advertised
Squadron Compound Cherry Point Nov/Dec 12
P 711- Personnel Admin New River $8,525,000 To be advertised
Center Dec 12
15. NAVFAC FY13 Program
Project Location Value Acquisition Tool Key Dates
P 1425 Overhead Range Camp $3,000,000 To Be advertised
Baffle System Lejuene Oct/12
Q1218 SOF Marine Battalion MCAS $ 53,399,000 To be
Company/Team Facilities Cherry Point advertised Sept
12
SOF Survival Evasion Resist Camp $5465,0,000 To be advertised
Escape Training Facility Lejuene Sept 12
P 8144 Medical Clinic New River $21,200,000 To be advertised
Replacement Center Spring 2013
16. NAVFAC FY13 Program
Project Location Value Acquisition Tool Key Dates
P-25 Replace Delalio MCAS New $23,000,000 Sometime in FY
Elementary School River 13
17. 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
18. 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
19.
20.
21. 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
22. 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
23. 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
24. 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
25. Remaining USACE FY12
Project Location Value Acquisition Tool Key Dates
PN 70351 Hospital Fort Bragg $ 57,600,000 Stand alone Projected award
Alteration (Grow the Army) Construction, est. date 6/1/12
advertising date (USACE
2/24/12/ Savannah)
PN 60272 SOF Fort Bragg $10,758,000 MATOC, adv. 4/20/12 Projected award
Communications Training date 7/11/12
Facility
PN 69758 SOF Brigade HQ Fort Bragg $19,000,000 MATOC adv. 4/13/12 Project award
Facility/95th CA date 7/4/12
PN 71224 SOF Admin- Fort Bragg $ 26,000,000 MATOC adv 3/8/12 Project award
Company Ops Ph 2/4th date 5/28/12
MISOG
26. Remaining USACE FY12
Project Location Value Acquisition Tool Key Dates
PN 60821 SOF Squadron HQ Fort Bragg $11,000,000 MATOC adv. 1/18/12 Projected award
Addition date 5/20/12
(USACE
Wilmington)
PN 76364 SOF Battalion Ops Fort Bragg $41,000,000 MATOC, adv. 4/13/12 Projected award
Complex date 7/7/12
PN 69458 SOF Battalion Ops Fort Bragg $23,478,000 MATOC adv. 2/28/12 Project award
Complex (4th MISOG) date 6/7/12
PN 69277 SOF Access Fort Bragg $ 2,300,000 MATOC adv 4/9/12 Project award
Control point/SOTF date 6/14/12
27. 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 Fort Bragg $54,000,000 MATOC, adv. 4/30/12 Projected award
Vehicle Maintenance Hangar date 6/30/12
PN 70751 (ACP) Brigade Fort Bragg $18,000,000 MATOC adv. 3/15/12 Project award
Complex Facility date 7/15/12
28. Remaining USACE FY12
Project Location Value Acquisition Tool Key Dates
PN 76373 SOF USASOC HQ Fort Bragg $12,000,000 MATOC adv. 2/3/12 Projected award
Annex/USASOC 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 Fort Bragg $23,086,000 MATOC adv. 6/1/12 Project award
McNair Elem School date 8/30/12
P-AM10081 Replace Murray Fort Bragg $22,000,000 MATOC adv 6/1/12 Project award
Elementary date 8/30/12
29. Remaining USACE FY12
Project Location Value Acquisition Tool Key Dates
P80087 General Purpose Fort Bragg $13,800,000 MATOC adv. 7/2/12 Projected award
Warehouse date 8/31/12
(USACE
Savannah)
P 371417, Transpired Solar Fort Bragg $ 1,500,000 MATOC, adv.5/11/12 Projected award
Collectors date 7/18/12
Unrestricted DB/DBB UNK $499,000,000 Adv. 7/1/12 Project award
MATOC date 9/30/12
Two 8(a) DB SATOC UNK $100,000,000 adv. 2nd QTR Project award
date 8/30/12
30. Remaining USACE FY12
Project Location Value Acquisition Tool Key Dates
6 Unrestricted Full Service UNK $12,000,000 UNK
AE Design
Two restricted Full Service UNK $ 4,500,000 UNK
AE Design
Four Unrestricted Full UNK $ 12,500,000 UNK
Service Installation Specific
AE Design
One SB Environmental UNK $ 45,000,000 UNK
MATOC
31. USACE FY13 Program
Project Location Value Acquisition Tool Key Dates
P-69287 SOF Battalion Fort Bragg $ 40,481,000 March 2013
Operations Facility anticipated
award date
P-69493 SOF Sustainment Fort Bragg $ 24,693,000 March 2012
Brigade Complex anticipated
award date
P-69382 SOF Civil Affairs Fort Bragg $31,373,000 March 2012
Battalion Complex anticipated
award date
P-65052 SOF Support Fort Bragg $3,875,000 March 2012
Addition anticipated
award date
32. USACE FY13 Program
Project Location Value Acquisition Tool Key Dates
P-55121 Aerial Gunnery Fort Bragg $ 42,000,000 Dec 2012
Range anticipated
award date
P78499 Infrastructure Fort Bragg $ 30,000,000 May 30 2013
anticipated
award date
P-80112 Unmanned Aerial Fort Bragg $31,373,000 February 2013
Vehicle Complex, Phase 2 anticipated
award date
33. Agency FY13 Program
Project Location Value Acquisition Tool Key Dates
Replace Pipeline DLA $1,850,000
Seymour
Johnson AFB
TRICARE Management Seymour $53,600,000
Activity Medical Clinic Johnson AFB
Replacement
34. 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
35. 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
36. 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
37. 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)
40. 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
51. 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
52. 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