520 likes | 748 Views
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
E N D
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
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
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, 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
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