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, [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