Society of American Military Engineers Post Leadership Workshop Washington DC Post

1. Mike Schultz Society of American Military Engineers Post Leadership Workshop Washington DC Post Mike Schultz Chief Installation Support Division, Regional Integration Team Leader for Northwestern Division & Huntsville Center 17 May 2012

2. Agenda • Overview • What is Changing • MILCON Overview • Project Delivery • Safety • Energy and Sustainability

3. USACE Overview • USACE provides value for the Nation and diverse stakeholders. • Across the globe, we deliver positive impacts for today and tomorrow - in construction, natural resource management, energy and sustainability and capacity building, disaster response, contingency support, and more. • We deliver services in partnership with industry based on historically strong collaborative and innovative working relationships.

4. USACE Military Missions Fort Belvoir Housing • Military Construction • Installation Support • Environmental • Energy and • Sustainability • Interagency Support • International Services • Real Estate Services • COCOM Support • Research and • Development • Geospatial Support West Point Library HAAN Bridge, FT Bliss, TX

5. What is Changing in Military Programs • Reduction in MILCON program and number of projects • Ascending Host Nation Program • Proportional reduction in the Army and increase in the Air Force and DOD programs (% of program) • Potential increased requirements to support COCOM theater engagement • Increased requirements for energy and sustainability • Increased potential requirements for Restoration and Modernization of existing facilities • Increased customer expectation for enterprise solutions

6. Military Missions Program TrendsFY01-16 Program ($Millions) Fiscal Year As of 16 Apr 12

7. Near-Term MILCON Overview MILCON FY 12 & Prior Total Program 359 projects / $9.2B EOY Execution Projection 337 projects / $8.4B • Army – 180 projects / $4.39B • Air Force – 62 projects / $1.5B • DOD – 93 projects / $3.24B • ECIP – 20 projects / $63.8M • DECIP – 4 projects / $3.4M MILCON FY13 President’s Budget - 149 Projects / $4.9B (excl. Navy $67M) • Army – 68 projects / $2.1B (MCA, MCAR, AFHC, AFHI) • Air Force – 14 projects /$311M (MCAF, MAFR, FHAF) • DOD – 51 projects / $2.4B (DODM, DODS, DLA, MCN, MCDA, MDAM, NSA,SOF) • ECIP – 16 projects / $50M (est) Potential Future BRAC – DOD/DA discussions ongoing • DoD and HQDA requested additional BRAC authority to Congress to properly shape existing installation inventory to match evolving strategic and mission requirements.

8. NWD 12/$510M Military ConstructionDivision and District Boundaries(FY13 President’s Budget)MCA/MCAR/Health Affairs/Air Force NAD 15/$872M Alaska LRD 18/$369M Seattle North Atlantic SPD 7/$118m Portland Northwestern New York Chicago Sacramento Omaha Cincinnati Baltimore Great Lakes & Ohio River South Pacific San Francisco Norfolk Kansas City POD 11/$417m Louisville Little Rock Los Angeles Albuquerque Tulsa Atlanta Southwestern South Atlantic Honolulu Savannah Pacific Ocean SAD 15/$295M Ft. Worth Mobile Dallas Districts Outside the US: Europe (Germany) Far East (Korea) Japan LEGEND: Div./Regional HQ location District HQ location Division boundary District boundary State boundary SWD 12/$421M Other Special Assignments: Huntsville Engr & Spt Center (Chemdemil) TAC-Winchester (Africa, Bosnia, Mid East) St Louis District - Archaeology Philadelphia District-Brokered MILCON Mobile District (Panama, Puerto Rico, etc) # Projects/Funding

9. FY13 MILCON President’s Budget – • MILCON OVERVIEW Facilities Investment in Army Priorities (MCA, MCAR, MCNG) $ Billions *Does not include minor construction or planning and design

10. Project Delivery Acquisition of standard facilities using more regional vice product line contracts Developing regional models and updating standard designs for energy. Employ multiple delivery methods Design Bid Build Design Build Adapt Build Lifecycle Cost Analysis (LCCA) Focus on… Quality Schedule Budget Closeout Project Delivery 10

11. Energy and Sustainable Design ASHRAE 189.1 is our standard. (version 2009) ASHRAE 189.1 is exceeded as the project moves towards compliance with EISA 2007 A Life Cycle Cost Analysis, (LCCA) is required for all energy enhancement measures exceeding ASHRAE 189.1 Tri-service initiative underway for design proposals to include a LCCA for evaluation LEED Certification – FY 12 NDAA prohibition on LEED Gold and Platinum, requires LCCA for items Above LEED silver Energy and Sustainable Design 11

12. Energy Initiatives Task Force (EITF) • Established by the Secretary of the Army, September 2011 • Central management office for cost-effective renewable energy projects • EITF provides centralized support to garrison staff • Private sector financing • Large-scale renewable energy projects / greater than 10MW • Land-use and third-party financing authorities: EUL, easement, ESPC, PPA and UESC • Renewable and Alternative Energy Production for Federal Installations • Draft IDIQ RFP posted on FedBizOps 24 Feb 2012 • Supports the DOD goal to produce or consume 25 percent of its total energy use from renewable sources by year 2025 • Purpose is to procure reliable, locally generated, renewable and alternative energy through power purchase agreements or other contractual equivalents • Intent of the government to purchase energy produced; not to acquire generation assets • Allows for the purchase of energy up to $7B total over a period of 30 years or less from renewable energy plants that are constructed and operated by contractors using private sector financing

13. Safety and Occupational Health • USACE is a leader in construction safety management – our contractor team has an accident rate of approx 10% of the general construction industry • USACE EM 385-1-1 Safety and Health Requirements manual is a requirement in all DoD construction comments • Currently starting the next revision of the manual – will be requesting industry input as drafts are developed – will be located on USACE safety website: http://www.usace.army.mil/CESO/Pages/Home.asp • USACE is the Army lead for Facilities System Safety- goal is to design, construct, operate and maintain facilities that are safe and healthy • Focused on six high hazard areas- cranes, fall protection, hazardous energy, arc flash, diving, • dredging

14. FY13 MILCON Overview FY13 Budget Overview Document can be found at: http://comptroller.defense.gov/budget2013.html Links to Budget Materials: US Army Budget Documentation, US Air Force Budget Documentation, and Defense Wide Budget Documentation http://www.asafm.army.mil/offices/BU/BudgetMat.aspx?OfficeCode=1200 http://comptroller.defense.gov/defbudget/fy2013/budget_justification/pdfs/07_Military_Construction/13-TRICARE_Management_Activity.pdf • USACE Contracting website: • http://www.usace.army.mil/BusinessWithUs/Contracting.aspx • USACE Safety and Occupational Health website: • http://www.usace.army.mil/CESO/Pages/Home.aspx 14

15. Through deeds, not words, we are BUILDING STRONG

16. Questions?

17. Backup

18. FY13 President’s Budget LRD Total LRD (19) : $369M

19. FY13 President’s Budget NAD Total NAD (15) : $872M

20. FY13 President’s Budget NWD Total NWD (12) : $510M

21. FY13 President’s Budget POD Total POD(11) : $417M

22. FY13 President’s Budget SAD Total SAD(15) : $295M

23. FY13 President’s Budget SPD Total SPD(7) : $118M

24. FY13 President’s Budget SWD Total SWD(11) : $421M