Presentation 9

NAVFAC MIDLANT/CO

CAPT JOHN W. KORKA, P.E.

1

Old Dominion UniversityCivil and Environmental Engineering

Visiting Council SeminarFederal Contracting Opportunities

CAPT John W. Korka, CEC, USNCommanding Officer, NAVFAC Mid-Atlantic

29 November 2012

2

The key considerations we should apply to every decision:

• Warfighting First Be ready to fight & win today, while building the ability to win tomorrow

• Operate Forward Provide offshore options to deter, influence, & win in an era of uncertainty

• Be Ready Harness the teamwork, talent and imagination of our diverse force to be

ready to fight & responsibly employ our resources Sailors will be trained

Subs, ships, aircraft will be maintained

Shore commands will be enabled to support what you need to do your job

We will be judicious with resources

Chief of Naval Operations Tenets

2

3

Naval Facilities Engineering Command(NAVFAC)

Our Mission:NAVFAC is the Systems Command that:

- builds and maintains sustainable facilities;

- delivers utilities and services; and

- provides Navy expeditionary combat forces capabilities.

Our Vision:Our expertise enables mission success.

4

NAVFAC Atlantic

CAPT MaurerCommanding OfficerNAVFAC Southwest

CAPT BranchCommanding OfficerNAVFAC Washington

CAPT CarielloCommanding OfficerNAVFAC EURAFSWA

CAPT WordenCommanding OfficerNAVFAC Midwest

CAPT KorkaCommanding OfficerNAVFAC Midlant

CAPT LaPlatneyCommanding OfficerNAVFAC Northwest

FY 13 ~$9.2B Volume of Business! – Approximately 19,000 people

NAVFAC SWOICC MCI-West10 PWDs9 ROICCs

NAVFAC NW3 PWDs

NAVFAC MW4 PWDs

NAVFAC WASH

NAVFAC MLOICC MCI-East

5 PWDs2 ROICCs

11 PWDs1 ROICCs

NAVFAC SE17 PWDs6 ROICCs

NAVFAC EURAFSWA5 PWDs5 ROICCs

NAVFAC Atlantic7 FECs55 PWDs2 OICCs23 ROICCs

CAPT KiwusCommanding OfficerNAVFAC Southeast

3

5

NAVFAC Mid-Atlantic Area Of Responsibility

NSY PortsmouthKittery, ME

NSU Saratoga Springs, NY

NS Newport, RI

SUBASE New London, CT

NAES Lakehurst, NJ

Wallops Island

MCAS Cherry Point, NC

Officer in Charge of Construction

Sugar Grove, WV

NSA Mechanicsburg, PANSAPhilly

PNBC Annex (Navy Yard)

JRB Willow Grove, PA

NWS Earle, NJ

Marine Corps Reserve – 50

Navy Support Centers – 31

Cutler, ME

Rangeley, ME

Prospect Harbor, ME

11 December 2012

NAS Oceana

Dam Neck Annex

JEB Little Creek-Ft. Story

NAVSTA Norfolk

NSA Hampton Roads

Norfolk Naval Shipyard

NAVWPNSTA Yorktown

Cheatham Annex

North CarolinaIntegrated Product Team Demographics: 226 Billets

23 Military 181 Civilian

18 Contractor

Hampton RoadsIntegrated Product Team Demographics: 1628 Billets

46 Military 1572 Civilian

10 Contractor

MIDLANT CoreDemographics: 648 Billets

12 Military 619 Civilian17 Contractor

Northeast Integrated Product TeamDemographics: 1128 Billets

26 Military 1091 Civilian

8 Contractor

NAVFAC MIDLANT Demographics: 3630 Billets

107 Military 3463 Civilian

53 Contractor

6

NAVFAC Mid-AtlanticBusiness Volume

• Capital Improvements Construction $1B $1B $1B Design $1B $1B $1B

• Public Works Service Contracts $194M $193M $197M Maintenance $118M $113M $112M Utilities $358M $366M $363M Transportation $101M $100M $101M

• Environmental Environmental Services (In-House) $11M $11M $11M Compliance $40M $20M $20M ERN $60M $56M $60M BRAC $16M $11M $10M

• Asset Management Planning Documents $18M $15M $15M

Workload -- Operations FY12 FY13 FY14

* As reflected in FY12 PRESBUD

Slight Dow

nward

Trend

4

7

Construction63%

Utilities15%

Maintenance13%

Transportation 4%

Environmental4%

Planning 1%

FY 13 Work Distribution Contracts--Location & Type

Design Bid Build

44%

Design Build56%

MAC42%

Other6%

Stand Alone52%

Hampton Roads33%

North Carolina

43%

Northeast21%

FEC MW 3%

* NOTE: FY13 MILCON data only

Location Contract Design

Business Volume $3B

8

Future Growth Area Energy

8

Key Information• 183 Installations and Supported Sites

• Land Area: 91,400 Acres

• Facilities structures: 9,321

• 122 Piers

• 6 Runways

• 10 Drydocks

• Homeported Ships/Squadrons:

• 6 Carriers

• 63 Surface Ships

• 27 Submarines

• 31 Aircraft Squadrons

NSA Mechanicsburg

NIOC Sugar Grove

NSA Saratoga Springs

Portsmouth Naval Shipyard

NAVSTA Newport

SUBASE New London

NWS Earle

NAS Oceana Dam Neck AnnexJEB Little Creek-Ft. StoryNAVSTA NorfolkNSA Hampton RoadsNorfolk Naval ShipyardNAVWPNSTA YorktownCheatham Annex

NCTAMSLANT Cutler

NAVSOC Prospect Harbor

NSA PhiladelphiaPNBC Annex (Navy Yard)

Wallops Island

Navy Operational Support Centers – 31

Energy Profile (Shore)FY13 Utilities Budget: ~$222M

Annual Energy Consumption: ~9,600,000 MBTU

Annual Water Consumption: ~3,398,000 KGAL

Average Electrical Demand: 300+ MW

5

9

By Installation

NSA Hampton

Roads$7M

Norfolk Naval Shipyard

$2M

NSA PA$24M

SUBASE New London

$24 NAVSTA Norfolk

$5M

Portsmouth Naval Shipyard

$30M

NAVSTA Newport

$7M

JEBLCFS$8M

NWS Earle $1M

NASOceana

$5M

By Project Type

Energy Project Investments

10

No Surprises– Uncompromising Quality

– On-time Delivery

– Within Budget

– Zero Safety Mishaps

• Professional/Technical Competency

• Innovative Solutions

• Communications, Communications, Communications

Leadership’s Expectations

6

11

Keys to Success

• Partnership: Contractor NAVFAC/Customer – Communicate, Collaborate, Coordinate

– Proactive, concise and honest

– Modifications/RFIs must be in writing and resolved promptly and accurately

– Positive Relationship– Professional, fair and reasonable

– D/B contracts require strong partnering btwn GC/Designer w/ subcontractor engagement

• Understand expectations – Know your contract references and criteria

– Realistic schedules…request Government help when needed!

• Quality – Get it right the first time…saves time, money and contract close-out

• Safety…an absolute– Zero mishaps/safety culture (Prime and Subcontractor)

• Pride and Ownership11

12

Risks to Success

• Poor communication, allowing problems to languish, and lack of documentation will cripple timely execution and quality.

• What you can do to drive success:–Take direction and requirements from NAVFAC representatives only…direct other interested parties to your NAVFAC Construction Manager

– Subcontractor Management…our contract is with you - not your subs –lead/direct their actions because it impacts your reputation

– HVAC and Fire Protection system design and installation is a common weak point - make sure the performance and submittal requirements are understood and the right NAVFAC experts are engaged through your construction manager

– Be proactive in NAVFAC Red Zone…makes an impact in the homestretch

– Pick the right Quality Control Manager…saves re-work and delays

– Adherence to three phases of control…Preparatory, Initial, and Follow-up is a proven method of success

12

7

13

• MIDLANT facilities and environmental program funding keeps pace in FY13; uncertainty in out-years

• Constant focus on Safety and Quality

• Minimize contract cost & schedule growth

• Continue to mature mainstreaming of Energy and Sustainability Initiatives

• Ownership and Good Communications drive success

• Overarching goal is to produce Quality, Best-value Solutions in support of the Warfighter

Summary

14

Thank You for Your Support

…to the fleet, the fighter, & the family!

Learn more about NAVFAC1. Visit our webpage @

www.navfac.navy.mil

2. Go to “Organization” Tab

3. Select desired NAVFAC component

4. Go to “Contact Us/Visitors”

8

15

Questions?

16

Back-Up Slides

9

17

Energy Conservation and Investment Program (ECIP)– Part of MILCON program, projects between $300K - $4M – Focuses on large scale energy projects with significant cost savings that exceed

SRM Minor construction threshold– Renewable (solar, wind, etc) or “game changers”– FY13 P536 Energy Recirculation System Bldg 633 Complex, Phil, PA

Range ($10M - $25M)

Energy Special Projects (RMe)– Funded by Navy Operations & Maintenance funding– Established as a separate SRM allocation in FY12– FY13 ($56.3M); expected to result in 391,697 MBTU annual savings– Targets aging & inefficient facility & infrastructure upgrades & repairs with

financial payback– eROI scoring tool used to prioritize projects

• Navy energy website: https://energy.navy.mil• POC: Arnold Agustin, (757) 341-1205

NAVFAC Mid-AtlanticEnergy Program

18

NAVFAC Mid-AtlanticEnergy Program

Navy Energy Saving Contracting Opportunities

Financed Energy Projects (FEP)– Energy Saving Performance Contracts (ESPC)

• Contracts with Energy Service Companies (ESCOs)

• Guaranteed savings, usually include O&M throughout repayment term

– Utility Energy Service Contracts (UESC)• Utility sponsored programs

• Quicker to implement than ESPC, typically smaller in scope

Major Maintenance & Repair Program Energy Projects (MMRPe)– FY13 ($5.6M); FY14 ($5.3M)

– Energy projects to maintain and recapitalize utilities infrastructure

– Rolled into the NWCF utility rate