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”

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

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)

38. 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

39. NCMBC Resources

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

43. Checklist
Presentations
Spreadsheets

44. Forecast Spreadsheet
Justification Data

45. Future MILCON Projects

47. Current Prime Contracts

48. Current Multiple Award Contracts

49. Current AE IDIQ Contracts

50. Construction
Opportunities
in NC - Updated
Daily

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