US Army Corps of Engineers One Corps Serving the Army and the Nation Army MILCON Transformation… Update MT Standards & Criteria Team Leader Headquarters, U.S. Army Corps of Engineers NCSU Engineer Forum 21 May 2007

US Army Corps of Engineers One Corps Serving the Army and the Nation DASA (I&H) Direction The Challenge Align with Industry USACE Reinventing MILCON Processes Framing the Strategy The Model RFP… Time, Cost, Quality? The Model RFP… What does it do? After Award? Pilots & Lessons Learned Overview

US Army Corps of Engineers One Corps Serving the Army and the Nation DASA(I&H) Direction Development of strategy and implementation plan to support the major permanent restationing initiatives that the Army will execute. Overall objective is to provide the ability to establish, reuse/re-purpose facilities with minimum lead-time, leverage private industry standards and practices and to reduce acquisition/lifecycle costs Nov 2004

US Army Corps of Engineers One Corps Serving the Army and the Nation IGPBS Army Modular Forces BRAC 05 MILITARY WORKLOAD OVER TIME Multiple ‘Peaking’ Programs w/Critical Facilities Needs Critical Questions… How much, when? Temp Bldgs Bldgs NOW Installations MILCON/GWOT Spt Our Challenge!!!

US Army Corps of Engineers One Corps Serving the Army and the Nation Align with Industry… MILCON Barracks (1+1) $168/SF, Scope: 99,500 SF Private Industry Apartment Function: House People Construction Type: All Types Occupancy Type: Residential Operations: Accommodate Sleeping/Bathing, Accommodate Relaxation/Cooking, Accommodate Privacy, Gather People, Facilitate Circulation Function: House Soldiers Construction Type: Type I or II non-combustible Occupancy Type: Residential Operations: Accommodate Sleeping/Bathing, Accommodate Relaxation/Cooking, Accommodate Privacy, Gather People, Facilitate Circulation IndustryInstallation Projected cost savings 15-20% Projected time savings 20-30%

US Army Corps of Engineers One Corps Serving the Army and the Nation USACE Reinventing MILCON Processes on the Fly Winning GWOT Innovation & Improvement TrainingTraining Quality of Life Business Efficiencies Manning the Force Quality Outcomes BRAC Execution MILCON Execution MILCON Process Reinvention StationingStationing Inherently linked Activities MILCON Transformation Modular Force Initiative Initiative Real Estate Support Enviromental Support “USACE must reinvent MILCON processes while executing Mission requirements and implementing MILCON Transformation”

US Army Corps of Engineers One Corps Serving the Army and the Nation Framing the Strategy Team effort between government and industry (Forums) Minimize Perceived Risk –Two Phase Approach, Performance Based, Process Consistency, Evaluation, Execution, etc.) Programmatic Acquisition Strategy Approved – 1 Feb 2006 –Moving away from acquiring facilities one at a time –ST Application (FY06-07), DB –MT Application (FY08 Transition), Combination of DB/DB(B) Design COS, IDIQs, Geographic Execution, etc. –LT Application (Beyond…), D-Adapt-B The Primary Mechanism: USACE MT Model RFP

US Army Corps of Engineers One Corps Serving the Army and the Nation The Model RFP… Time, Cost, Quality? Model RFP Objectives for Time, Cost and Quality: –Aggressive Time goals established –20% reduction in cost over the existing design criteria and USACE processes up front in the programming –The primary factor in the competition is to maximize quality within the time and cost constraints –Phase II Evaluation Factors, C/T/Q

US Army Corps of Engineers One Corps Serving the Army and the Nation The Model RFP… What It does Consistency via RFP throughout the Army Sets the baseline Functional, Operational, and Technical Standards Sets ambitious Schedule and Budget, & Evaluates on Quality received Performance based requirements, maximizing flexibility, and minimizes proposal efforts Tailored only for site specific requirements Provides for Life Cycle Cost, Maintainability, Durability, ATFP, Energy Efficiency, and Sustainability in evaluation factors

US Army Corps of Engineers One Corps Serving the Army and the Nation After Award? Streamlined: Design After Award –DOR vs Contractor vs USACE –Design Review Process and Options –Level of Design Detail –Release for Construction –Site Specific Coordination QCS, Schedules, Submittals, Environmental…. CQC, Temp Const Facilities, Closeout Submittal….

US Army Corps of Engineers One Corps Serving the Army and the Nation Pilots & Lessons Learned Pilots –FT Campbell, Ft Bliss, FT Bliss, Ft Carson, Ft Riley Model RFP LL –State of the Art (DBIA!!) –Pilot Projects Status Corporate Lessons Learned –Performance vs Prescriptive –Culture/Perceptions –Consistency –Quality Drivers Inherent

US Army Corps of Engineers One Corps Serving the Army and the Nation Contracting Procedures Past Government methods –IFB –RFP Best Value RFP Best Value –LPTA –1 Step RFP –2 Step RFP Contract Mechanisms Design Build –Performance vs Prescriptive –MATOC - Multiple Award Task Order Contracts –SATOC - Single Award Task Order Contracts

US Army Corps of Engineers One Corps Serving the Army and the Nation Some Differences Between Public and Commercial Design- Build Government- Competition in Contracting Act Follow-on Contracts Must be Competed Price is a Consideration “Best Value” (Price/Quality) Price Usually Established at Award (FFP) All Terms Defined at Award Commercial – No Competition Required On-Going Relationships are Common Quality Based Selection is Common Price Often Established After Design Starts Can Use “Guaranteed Maximum Price” FAR has no Exact Comparable Pricing Method

US Army Corps of Engineers One Corps Serving the Army and the Nation Contracting Procedures Developing the Request For Proposal Section D - Proposal Submission Requirements, Evaluation Criteria and Basis of Award RFP Sections & or Proposal Requirements.Contract Forms,and Conditions –0010 Solicitation, Offer & Award - SF 1442 –00100 Instructions, Conditions & Notices to Offerors –00110 Phase 1 Design-Build Selection Procedures –00120 Phase 2 Design-Build Selection Procedures –00600 Representations and Certifications –00700 Contract Clauses –00800 Special Contract Requirements

US Army Corps of Engineers One Corps Serving the Army and the Nation Award Bases “Best Value Continuum” (FAR ) Two General Approaches: –Lowest Price, Technically Acceptable Proposal –Cost/Quality Trade-off Process

US Army Corps of Engineers One Corps Serving the Army and the Nation "Lowest Price, Technically Acceptable Proposal" Government States Minimum Needs Evaluate Go/No-Go Criteria Appropriate When- –Little or No Innovation Allowed –Govt. Not Permitted to Pay $1 More for a Much Better Proposal –Small and/or Noncomplex Projects Least Work/Award Documentation for Govt. Evaluators

US Army Corps of Engineers One Corps Serving the Army and the Nation "Lowest Price, Technically Acceptable Proposal" Government States Minimum Needs Evaluate Go/No-Go Criteria Appropriate When- –Little or No Innovation Allowed –Govt. Not Permitted to Pay $1 More for a Much Better Proposal –Small and/or Noncomplex Projects Least Work/Award Documentation for Govt. Evaluators

US Army Corps of Engineers One Corps Serving the Army and the Nation Cost/Quality Trade-off Process Quality may be More, Less, or Equally Important than Price Must be Determined and Stated – FAR (e) Relative Importance of Each Factor, including Price, must be Stated - FAR (d) Trade-off determines “Best Value”

US Army Corps of Engineers One Corps Serving the Army and the Nation Cost/Quality Trade-off Process Proposal Evaluated Against “Comparative” Standards Can Use Some Go/no Go Factors This Method Appropriate When –Variations in Design Solutions or Industry Capability Will Add Value

US Army Corps of Engineers One Corps Serving the Army and the Nation Proposal Evaluation Criteria Inform Offerors How Proposals Will Be Evaluated Identify All Significant Factors and Subfactors and their Relative Importance Describe Basic Evaluation Process Describe Basic Evaluation Criteria State the Basis of Award SSA Must Approve Revisions After RFP Issued

US Army Corps of Engineers One Corps Serving the Army and the Nation “Evaluation Standards” Establish Minimum Level of Compliance With RFP Describe in RFP: –Minimum Standards Where Possible –Each Factor and Significant Subfactor –How They Will Be Evaluated

US Army Corps of Engineers One Corps Serving the Army and the Nation “ Proposal Evaluation Categories “Quality” Information –“Design-Technical” –“Performance Capability” “Price” or “Cost” Information Oral Presentations (Optional)

US Army Corps of Engineers One Corps Serving the Army and the Nation “ Two-Phase Design-Build Selection Procedures FAR 36.3 Primary Considerations For Using 2 Phase Primary Considerations For Using 2 Phase Considerable Design Proposal Costs? Technical Proposal Provides Quality/Innovation Advantages to Gov’t? Expected Number of Offers?

US Army Corps of Engineers One Corps Serving the Army and the Nation “ First Phase” Primary Considerations For KTR Qualifications Past Performance Past Experience Management Key personnel

US Army Corps of Engineers One Corps Serving the Army and the Nation Phase 1: Open Competition Conducted in Accordance with FAR Offerors Submit: –Information on Certain “Performance Capability” Aspects –No Price Proposal Government “Short-Lists” Most Highly Qualified Offerors for Phase 2 Must State Maximum Number (3,4,5) in the Solicitation

US Army Corps of Engineers One Corps Serving the Army and the Nation Purpose of Performance Capability Proposal Provides the Government With Enough Information to Determine Whether the Offerors Will Have a High Probability of Successfully Completing the Project. Organization and Technical Approach Experience and Past Performance Key Personnel Financial Capability-Bonding Contract Duration Preliminary Schedule Financial Capability Subcontracting Plan SB/SDB/WOB Past Performance

US Army Corps of Engineers One Corps Serving the Army and the Nation Phase 2: Only Most Highly Qualified Offerors Firms Short-listed in Phase 1 Submit: –Extensive Design/Technical Information –Remainder of Performance Capability Information –Cost/Price Proposal and Price Breakdowns

US Army Corps of Engineers One Corps Serving the Army and the Nation Phase 2: Only Most Highly Qualified Offerors May Be Continuation of Same Solicitation or Separate Solicitation Government may Offer Stipends to Unsuccessful Phase 2 Offerors –Government Shares Estimated Cost to Develop Technical Design Proposal –Technical Proposal Must Meet Minimum Standards –See Exhibit 2 for ECB , Use of Stipends in MILCON Funded D-B Projects

US Army Corps of Engineers One Corps Serving the Army and the Nation Purpose of Technical Proposal Provides the Government Enough Information to Determine Whether the Design Proposals Meet or Exceed the Minimum Requirements.

US Army Corps of Engineers One Corps Serving the Army and the Nation Typical Design-Technical Categories Technical Approach (Narratives) Specifications Drawings Renderings Design Calculations List of Materials, Catalog Cut Sheets Models/Brand Names

US Army Corps of Engineers One Corps Serving the Army and the Nation Required Level of Detail for Technical Submission Information Must Establish Mutual Understanding of Project Scope of Work Inversely Proportional to Level of RFP Design Criteria ("Nominal" to "Full") RFP can Use Combination of Nominal, Partial, Full Some Design Development Effort Internally Required by D-B Teams

US Army Corps of Engineers One Corps Serving the Army and the Nation Contract Line Item Schedule Fair and Reasonable Material Unbalancing Price Breakdown Information Price Not The Key Evaluation Criteria