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North Carolina Military Business Center Military Construction Market September 16, 2009

North Carolina Military Business Center Military Construction Market September 16, 2009. Mission and Goals. Mission: To leverage military and other federal business opportunities for economic development and quality of life in North Carolina Goals:

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North Carolina Military Business Center Military Construction Market September 16, 2009

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  1. North Carolina Military Business Center Military Construction Market September 16, 2009

  2. Mission and Goals • Mission: • To leverage military and other federal business opportunities for economic development and quality of life in North Carolina • Goals: • Increase military business for NC companies • Integrate military/families into workforce • Support defense-related recruitment • Community College System, 12 offices in NC

  3. Services and Metrics • Business Development: • Identify, source opportunities and assist businesses • Technology Resources (ncmbc.us, MatchForce.org): • Contract and employment intel, matching, notification Data as of: 11 SEP 2009

  4. Strategic Focus2008 - 2009 • Pre-positioning: NC teams for future opportunities • Subcontracting: with major defense primes • Aerospace Alliance, Defense Machining Initiative • Leveraging base growth in North Carolina • Leveraging military construction opportunities ($5 - 7 billion in NC by 2012)

  5. Military Construction Marketplace Transformation of the force Relocation of forces from overseas Base Realignment and Closure (BRAC) Higher quality of life standards (new, SRM) Commercialized family housing Sustainable installations “Grow the Force” American Recovery and Reinvestment Act (ARRA)

  6. Military Construction Opportunities Prime and subcontracts Family housing (commercialized) Military Construction (MILCON) Sustainment, restoration, modernization (SRM) American Recovery and Reinvestment Act (ARRA)

  7. Fort Bragg / Pope AFB Population increase: 8,203 military + families Military Construction (MILCON): see table SRM Construction/ Repair: >$100m FY09 Housing Privatization (Generals, FY10, $5.4m) Water/Waste Water (ONUS, $575m)

  8. Fort Bragg / Pope AFB FY10 • Regular MILCON (Army) • Veh Maintenance Shop, 525th BFSB, $19.5M • Battle Command Training Center, $50.0M • Veh Maintenance Shop, 7th Trans, $17.5M • SF Prep Course Barracks & DFAC, $16.5M • Company Ops Roundout, 192d EOD, $3.3M • Schools • Albritton Junior High School Addition, $3.5M

  9. Fort Bragg / Pope AFB FY10 • Special Operations Forces (SOF) Construction • SF Prep Training Facility, $24.6M • SOF Civil Affairs Bn HQ, 95th CA Bde, $13.0M • SOF Group HQ, 3d SF Group, $15.5M • SOF Unmanned Aerial Vehicle Hangar, $2.9M • SOF Military Working Dog Facility, $5.9M • SOF N Operations Addition, $28.0M

  10. Fort Bragg / Pope AFB FY10 • Special Operations Forces (SOF) Construction Cont. • SOF Operations Support Additions, $14.0M • SOF Civil Affairs Bn Complex, $17.6M • SOF Bn Operations Complex, $24.1M • BRAC • Combined FORSCOM/USARC HQ, Ph 2, $146M • Consolidated Troop Med Clinic (Pope), $28.0M

  11. Fort Bragg / Pope AFB FY10 • BRAC MILCON Cont. • Band Training Facility, $4.2M • Family Housing Privatization – General Officers Quarters, $5.4M • Grow The Army • Hospital – Freestanding Clinic, $32.0M • Automated Multi-Purpose Gun Range, $4.4M • Total: $479.0 Million

  12. Sustainment, Restoration and Modernization (SRM) Mix of work in FY09: • Structures (Roofs, Renovations, and Small Buildings): $40M • Mechanical (HVAC, Plumbing): $20M • Roads, Grounds, Utilities: $20M • Small Projects (HVAC, Renovations): $20M

  13. Construction Opportunities Camp Lejeune and MCAS Cherry Point Construction Opportunities

  14. Camp Lejeune / Cherry Point Population increase: 11,477 military + families Military Construction (MILCON): $3B in 4 years SRM Construction / Repair: >$100m in FY09 Housing Privatization: up to 850 new units through public private venture (AMCC and Lincoln Properties)

  15. Camp Lejeune / Cherry Point FY10 EMS/Fire Vehicle Facility $10.6M Modify K-Ranges, Phase II $20.2M GTF Multi-Purpose Gun Range $17.2M Pre-Trial Detainee Facility $18.5M Tactical Support Van Pad (MACC) $5.4M MP Working Dog Kennel (MACC) $8.3M Ordnance Magazines (MACC) $12.3M SOI East Facilities (MACC) $56.9M

  16. Camp Lejeune / Cherry Point FY10 Field Training Facility (MACC) $37.1M Consolidated Info/Telecom Complex $46.1M New Base Entry Point & Road, Ph I $79.1M Utility Expansion $56.2M Parallel Taxiway $17.8M Apron Expansion, Ph II $35.6M Naval Hospital Addition $64.3M Naval Hospital Renovation & Addition $57.9M

  17. Trends and Factors Design Build delivery method predominates Performance-based requirements: EPAct 2005, LEED Silver All construction types (I-V), including modular Standardization: design (USA), processes, RFPs MILCON transformation, centers of standardization, 8 (Corps of Engineers) Major increase in use of MATOC/SATOC (Corps) and MACCs (NAVFAC, USCG)

  18. Trends and Factors “Focus on safety, quality and speed” Meet small business goals Corps, NAVFAC encourage mentor-protégé, Joint Ventures, subcontracting and competing Market flush with NC and out-of-state contractors Quality facilities for military and families!

  19. Challenges • Regulatory and policy issues • experience factor (level playing field) • proximity (non)factor • lower familiarity with NC contractors • cost to compete in DB, 2-phase environment • consolidation, standardization, MACC/MATOC • proposal development time too short • no short list announcements (Navy projects) • high liquidated damages (Navy projects)

  20. Challenges • Market related issues • high competition: market flooded with new contractors • awards often 30-40% below government estimate • cost to execute (margins smaller) • “Design build divorce:” GC’s dumping partners • joint ventures offer opportunities (growing interest among NC contractors)

  21. Construction Opportunities American Recovery and Reinvestment Act (ARRA)

  22. Military Construction (ARRA) • Fort Bragg • Child Development Center: $11.3m • Energy Management/Control System: $1.0m • Camp Lejeune / Cherry Point • Facility Energy Upgrades: $13.7m • Repair Bachelor Enlisted Quarters: $3.0m • Solar Training Pool: $0.7m • Facility Energy Improvements: $0.4m • Raleigh • Armed Forces Reserve Center (JFHQ): $39.5m

  23. SRM Projects (ARRA) Fort Bragg: $98.9m Camp Lejeune: $39.8m Pope AFB: $5.9m Seymour Johnson AFB: $16.0m Gastonia, Armory: $0.7m Charlotte, Navy Operational Spt Fac: $8.0m Greensboro, Navy Operational Spt Fac: $7.5m Total $194.8m

  24. Military Construction Opportunities Finding and Competing For Military Construction Opportunities (Strategies and NCMBC Tools)

  25. Current Prime Contractors

  26. Current Multiple Award Contracts

  27. 3987X Constr

  28. Future MILCON Projects

  29. North Carolina Capabilities Matrix

  30. Construction CompanyMarket Entry Strategies Team with successful GCs or form new DB team Compete on prime contract solicitations Compete for MACC solicitations (mechanical, roofing, etc) for specialized, small work Subcontract with GCs and MACC holders (NCMBC current prime, MACC lists) Subcontract to housing PPV’s (AMCC, Picerne Military Housing – online registration then visit

  31. What Businesses Need to Do Follow checklist on Links page (ncmbc.us) Register MatchForce.org Register,capabilities matrix (ncmbc.us) Register, subcontracting page (ncmbc.us) Register as government contractor, ccr.gov Market to DB teams, primes (spreadsheets on ncmbc.us), housing PPVs Attend NCMBC MILCON events: Summit OCT 27

  32. Contact Information Scott D. Dorney, Executive Director, (910) 323-4824, dorneys@ncmbc.us Courtney Smedick, MatchForce Administrator. (910) 323-4892, smedickc@ncmbc.us All NCMBC staff, including MILCON Specialists, “contact us” tab at www.ncmbc.us

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