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The Value Methodology:. The Framework for the Army’s Response to the Perfect Storm 26 June 2005 SAVE International Conference, San Diego, CA. By Jeffery T. Hooghouse . AIA . AVS Deputy Chief Architect of the Corps. Overview of Presentation. History of Initiative
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The Value Methodology: The Framework for the Army’s Response to the Perfect Storm 26 June 2005 SAVE International Conference, San Diego, CA By Jeffery T. Hooghouse . AIA . AVS Deputy Chief Architect of the Corps
Overview of Presentation History of Initiative Pilot Project Sets the Stage The Perfect Storm USACE Response S&C Workshop Follow-on Studies Summary
Difference? Value Engineering -vs- Value Methodology
History of Initiative 1996- Whole Barracks Renewal Program 1998- Barracks Mid-program Review 1999/2000- Program Review 2001- HQUSACE VE Studies Ft Meade Pilot Project GAO Audit on Privatization
History of Initiative 1996- Whole Barracks Renewal Program 1998- Barracks Mid-program Review 1999/2000- Program Review 2001- HQUSACE VE Studies Ft Meade Pilot Project GAO Audit on Privatization
Ft Meade Pilot Project • Cut Construction time by 55% • (NTP dates approx. same, pictures taken in NOV 02) • Occupancy appropriate • Materials & Methods • Cost Decreased while Quality Increased COST TIME QUALITY FY 00/01 Ft Army Type II, $140/SF, 22% complete FY00/01 Ft Meade Type V, $105/SF, 88% complete
The Perfect Storm Multiple ‘Peaking’ Programs w/Critical Facilities Needs Critical Questions… How much, when? BRAC 05 IGPBS MILITARY WORKLOAD Army Modular Forces Temp Bldgs GWOT Spt Installations OVER TIME NOW
Approximate Magnitude • Operations/Administration • - 500,000 SF or 11½ acres of Office Space • Apartments • - 540,000 SF for 1,500 Soldiers or 750 Two-Bdrm Apts • Cafeteria • - 30,000 SF for 800 Soldiers • Truck Maintenance Shop • - 280,000 SF or 6.4 Acres Shop Space • Parking Lots • - 182,000 SY or 36 Football Fields • Mini-Storage • - 65,000 SF or 325 Single Car Garages
ASA (I&E) Directive • “Asst. Secretary of the Army objective is … • Leverage Private Industry Standards & Best Practices • Innovative Design & Construction Practices • Maintain level of Quality / Value • Optimize Life-cycle costs • Execute faster • 25 Year “Functionality” Life
USACE Response Established Program Delivery Team HQDA & HQUSACE Three Focus Groups Planning & Programming VM Focus for Requirements Development Acquisition & Execution 5 Industry Forums / Market Research Master Acquisition Strategy Standards & Criteria
Standards & Criteria Focus Initial Value Management Study: Comparison of MILCON to Industry (Functional / Operational / Technical) Development of Model RFPs (Performance versus Prescriptive) Inputs to other Focus Areas (ie., Evaluation Criteria, etc.) Outputs of Scope / Resourcing (Planning and Programming Focus) Identification of Roadblocks Implementation “Path Forward”
First Wave Facilities • Tier I Facilities: • Barracks • Dining Facility • Company Operations Facility • BDE/BN Headquarters • Tactical Vehicle Maintenance • Facility
With the goal in mind…. MILCON Barracks (1+1) $168/SF (OSD Unit Cost) Private Industry Apartment Installation Industry • Function: House Soldiers • Construction Type: Type I or II non-combustible • Occupancy Type: Residential • Operations: Accommodate Sleeping/Bathing, Relaxation/Cooking, Accommodate Privacy, Gather People, Facilitate Circulation • Function: House People • Construction Type: All Types • Occupancy Type: Residential • Operations: Accommodate Sleeping/Bathing, Relaxation/Cooking, Accommodate Privacy, Gather People, Facilitate Circulation
With the goal in mind…. Dining Facility $228/SF (OSD Unit Cost) College Cafeteria Installation Industry • Function: Feed People • Construction Type: Type I or II non-combustible • Occupancy Type: Assembly • Operations: Feed People, Prepare and Serve Food, Accommodate Seating and Dining, Accommodate Studying, Gather People, Facilitate Circulation • Function: Feed People • Construction Type: All Types • Occupancy Type: Assembly • Operations: Feed People, Prepare and Serve Food, Accommodate Seating and Dining, Accommodate Studying, Gather People, Facilitate Circulation
With the goal in mind…. Company Operations Facilities $140/SF (OSD Unit Cost) Industrial/Admin Warehouse Installation Industry • Function: Centralize Operations • Construction Type: Type I or II non-combustible • Occupancy Type: Business/Storage • Operations: Manage People, Centralize Command & Operations, Store & Move Supplies • Function: Centralize Operations • Construction Type: All Types • Occupancy Type: Business/Storage • Operations: Manage People, Centralize Command and Operations, Store and Move Supplies
With the goal in mind…. Brigade/Battalion Hq. $155-170/SF (OSD Unit Cost) Office Buildings Installation Industry • Function: Administer Military Operations • Construction Type: Type I or II non-combustible • Occupancy Type: Business • Operations: Manage People, Centralize Operations, Manage Business Activities • Function: Administer Business • Construction Type: All Types • Occupancy Type: Business • Operations: Manage People, Centralize Operations, Manage Business Activities
With the goal in mind…. Tactical Equip Maint Facility $159-170/SF (OSD Unit Cost) Heavy Equip Maint Facility Installation Industry • Function: Maintain and Repair Vehicles • Construction Type: Type I or II non-combustible • Occupancy Type: Factory (Mod-High Haz) • Operations: Maintain and Repair Vehicles, Organize Equipment and Tools, Store Parts, Admin, Operations, Training, Deployment • Function: Maintain and Repair Vehicles • Construction Type: All Types • Occupancy Type: Factory (Mod-High Haz) • Operations: Maintain and Repair Vehicles, Organize Equipment and Tools, Store Parts, Admin, Operations
Follow-on Studies • Development of the Program Management Plan for Milcon Transformation • Risk Analysis Workshop • Senior Leader Workshop • RFP Development Workshop • Future VM Workshops….. • Organizational Planning Workshop • Management of Implementation • Future Requirements Definition
Summary • The Army needs our help….. • Quality / Value Improvements • Leverage Industry Best Practices • Improve Execution Time • Life Cycle Cost Improvements • Areas of Opportunity for Innovation • Identify Roadblocks & Barriers