Regional Dredging Acquisition Strategy

1. Regional Dredging Acquisition Strategy October 26, 2006

2. Regional Dredging Acquisition Strategy Overview Bob Prince, SAD -Regional Strategy -Industry Involvement New Acquisition Strategy Laura Harrell, SAD MATOC Initiative How Will it Really Work? Leo Hickman, SAM Questions Bob Prince, SAD

3. Regional Strategy • Moving from District Centric to Regional Focus • Consistent Approach • Contract Specifications • Contract Administration • Quality Assurance • Contracting Tools • Regional Planning – Regional Project Schedule Integration ESTABLISHMENT OF REGIONAL DREDGING INTEGRATOR- ANGIE PREMO, SAD

4. Industry Involvement • Listen to Concerns • Pre-Proposal Conferences • Regional approach Will Incorporate: • Reduced Cycle Times • Faster Award • Reduced Complexities • Opportunity to Clarify/Discuss Proposals

5. SAD Regional Contracting South Atlantic Regional Business Center Mobile Regional Contracting Center Savannah Regional Contracting Center Jacksonville Regional Contracting Center

6. FY 05 South Atlantic Division Contract Dollars Obligated Contract Dollars without Hurricane Dollars ($800M) Type of Work $1.4 Billion $402M $320M $34M • FY 2006 SAD Regional Contracting Focus • Military Transformation – Construction • Regional Dredging Strategy • Hurricane Support – Blue Roof/Housing/ Ice

7. ACQUISITION TRENDS IN SAD CONSTRUCTION • IN FY-99: • 65% of ALL Solicitations Were Sealed Bid • 20% 8(a) Negotiated • 5% Design-Build • NO IDIQs for Construction • IN FY-06: • Only Dredging Solicitations Were Sealed Bid • 25% 8(a) Negotiated • 33% Design-Build • All Military Construction Were “Best-Value” • 10 IDIQs for Military Construction

8. SAD ACQUISITION TRENDS IN FY-07 • Less than 5% of ALL Solicitations Will Be Sealed Bid—Downward Trend Will Continue! • 25% plus 8(a), But More Competitive Than Negotiated Matches • 70% of Construction Design-Build – Primarily Army • If not Design-Build, then Price – Performance Trade-Off • MATOCs and SATOCs Will Serve as Primary Contract Vehicles for Military Construction in ALL of USACE

9. SOUTH ATLANTIC DIVISION Regional Contracting Centers CURRENT CONTRACT TOOLS REGIONAL CONTRACTTOOLS • INDIVIDUAL RFP SOLICITATIONS • INDIVIDUAL IFB SOLICITATIONS • SDB8a NEGOTIATED CONTRACTS • SDB 8a IDIQs • WOMAN OWNED • HUB ZONE IDIQs • SDVO IDIQ’s • PURCHASE ORDERS • FACILITY TYPE MATOCs/SATOCs • GEOGRAPHIC MATOCs • INSTALLATION SATOC s • DREDGING MATOCS REGIONAL CONSTRUCTION ACQUISITION STRATEGY = +

10. Regional Dredging Approach New Strategy Requires Formal Acquisition Plan • Requires HQ USACE approval • Still in draft • Finalize and obtain approval • Duration of MATOCs- 12 month base plus two 12-month options • 4 Groups with $5OOM Capacity - $2 Billion total • Place of performance: SAD Area of Operation

11. Regional Contracting • SAJ Has Contracting Lead for the SAD • Dolly Colwell, Contract Specialist, SAJ for MATOC Establishment • Pre-Proposal Conferences – First Targeted for Feb 07 in Jacksonville, Second in Wilmington date TBD, Third in Mobile date TBD, & Fourth in Charleston date TBD. • Four Solicitations Issued to Determine MATOC Contractors for Groups I, II, III & IV • Solicitations Will Be Staggered; Not Issued Simultaneously

12. MATOC Solicitations-Key Points • Ordering Capacity per Grouping Will Be Shared; No Ceilings per Contractor • MATOC Solicitations Will Result in at Least Two Awards per Grouping • Solicitations for MATOCs Will Include: • General Project Descriptions • Terms and Conditions • Contract Clauses • Evaluation Factors • Parameters for Ordering Against MATOCs

13. Using MATOCs For Ordering Work (Task Orders) • Ordering Officials – SAD Procuring Contracting Officers (PCOs) • Task Orders Against MATOCs: • All MATOC Contractors given a Fair Opportunity to compete for work • MATOC Contractors Make Business Decision per Request for Proposal Whether to Participate in Competition • Plans & Specifications Project Specific • Less Involved Evaluation Process- Factors Keyed & Rank Ordered Specifically by Project (i.e., equipment availability, safety, performance, price) • Anticipate Primarily LPTA • Task Order Process Will NOT Require Interface With FedTeDS ! • SAD Districts Will Continue to Solicit & Administer their Projects

14. Group I • Coast Guard Certification Required • Hopper Dredge Work Only • Environmental Window Work Only • Specific projects identified, but not all inclusive i.e., Savannah Harbor Bar • Will have capacity for contingencies • Total Group Value: NTE $500M • Competition: Unrestricted • Place of Performance: Identified by Task Order • Will be restricted to Southeastern United States

15. Group II • Coast Guard Certification: Not required • No Environmental Windows • Mainly Shallow Draft/Small Harbor Work, i.e., AIWW, IWW • Specific Projects Identified, but Not All Inclusive • Will Have Capacity for Contingencies • Total Group Capacity: NTE $500M • Competition: Small Business –8(a)/HubZone • Place of Performance: Identified by Task Order • Will Be Restricted to Southeastern United States

16. Group III • Shore Protection Projects/ Beach Renourishment • May Require Coast Guard Certification • Environmental Windows May Apply • Specific Projects Identified, but Not All Inclusive i.e., Palm Beach Harbor, Pawley’s Island • Will Have Capacity for Contingencies • Total Group Value: NTE $500M • Competition: Unrestricted • Place of Performance: Identified by Task Order • Will Be Restricted to Southeastern United States

17. Group IV • Projects Not Meeting Parameters of Groups I-III • May Require Coast Guard Certification • Various Types of Plant & Equipment • May Involve Environmental Windows • Specific Projects Identified, but Not All Inclusive i.e., Tampa Harbor, Gulfport Harbor • Will Have Capacity for Contingencies • Total Group Value: NTE $500M • Competition: Unrestricted • Place of Performance: Identified by Task Order • Will Be Restricted to Southeastern United States

18. MATOC Enhancements • One Time Interface with FedTeDS per Group over 3 year Period • No Requirement for Task Order Competitions (Pricing Proposals) in FedTeDS • More Recent Surveys = More Accurate Surveys • Reduces Procurement Cycle Time (Cut by 45 days) • Establishes Long-Term Contractual Relationships • Fosters Improved Communication with Industry for Strategies/ Annual Forecasting/Projections • Task Orders Allow for Real Time Pricing Capturing Market Conditions

19. Points of Contact • Dolly Colwell SAJ 904-232-3739 • Cindi Tolle SAJ 904-232-1144 • Laura Harrell SAD 404-562-5210 • Angie Premo SAD 404-562-5130 • Bob Prince SAD 404-562-5125 • Leo Hickman SAM 251-441-5665 • Sherrel Bunn SAS(W) 910-251-4866

20. Discussions and Questions

21. “Plain English” Definitions • Multiple Award Task Order Contract (MATOC)- Type of Indefinite Delivery /Indefinite Quantity (IDIQ) Contract that Serves as the Basic Contract Vehicle Establishing Terms & Conditions & Rules of Engagement for Work Ordered. • Task Order - Term Used for Issuing Work Using a MATOC. • RFP- Request for Proposal- Can be Used for a Standalone Contract or to Obtain Pricing Proposal Under a MATOC. The RFP Issued to MATOC Contractors Will Contain the Government Plans/Specifications Unique to Project. Contractor Returns the RFP with Proposal & Pricing Paying Attention to Evaluation Factors in the RFP. The MATOC Contractor Makes Individual Business Decision Regarding Whether to Compete for Specific Projects Considering Capacity, Commitments & Plant/Equipment. • Release of Pricing Information Done in Strict Accordance with FOIA and FAR Rules.