NAVFAC MIDLANT 21 October 2010 CAPT John Heckmann, CEC, USN Executive Officer, NAVFAC Mid-Atlantic Naval Facilities Engineering Command Mid-Atlantic Workload Projections 1

2 Worldwide Facilities Engineering Expertise

3 Supported Command Demand Signal Unprecedented Workload Increase $ BILLIONS FY FY10 $15.9B Programs Since ARRA - OCO - GoJ Guam - USMC Guam - USMC GTF - IVAN/ KATRINA BOS/SRM NWCF DOD OTH NAVY OTH BRAC MC GTF OCO ARRA ERN MPN/RPN KATRINA GOJ GUAM MC GUAM FY08 $13.8B IVAN Nov 06 Projected Workload MILCON (DOD) MILCON (MC) MILCON (NAVY) 3

4 MIDLANT Business Volume Capital Improvements  Work-In-Place (WIP) $1.050B $ 1.279B $1.608B  Design-In-Place (DIP) $1.612B $1.558B $1.341B Public Works  Facilities-In-Place (FIP) $175.2M $182.4M $180.2M  Facilities Sustainment $104.1M $122.1M $124.4M  Utilities $354.4M $371.9M $378.9M  BSVE$ 92.7M $ 97.0M $ 99.6M Environmental  Environmental Services (In-House) $ 12.3M $ 10.2M $ 10.1M  Compliance (Salary $s excluded) $ 5.1M $ 5.4M $ 5.9M  ERN$ 59.2M $ 56.6M $ 57.7M  BRAC$ 12.1M $ 16.2M $ 13.0M Asset Management  Real Estate-In-Place (RIP)$ 13.5M $ 15.0M $ 15.5M Workload -- Operations FY09 FY10 FY11

5 NAVFAC MIDLANT Area Of Responsibility NSY Portsmouth Kittery, ME NSU Saratoga Springs, NY NS Newport, RI SUBASE New London, CT PWD Maine NAES Lakehurst, NJ Wallops Island PWD New London PWD Newport ROICC Cherry Point MCAS Cherry Point, NC Camp Lejeune, NC PWD PA OICC Camp Lejeune Sugar Grove, WV Cheatham Annex NWS Yorktown, VA PWD Yorktown Norfolk Naval Base, VA NSA Norfolk, VA Fort Story NAB Little Creek, VA NAS Oceana, VA NNSY Portsmouth, VA Dam Neck Annex PWD Portsmouth PWD Oceana PWD Little Creek PWD NSA PWD Norfolk NSA Mechanicsburg, PA NSA Philly PNBC Annex (Navy Yard) JRB Willow Grove, PA NORTHEAST IPT Staff 1,196 Business (FY10) $494M HAMPTON ROADS IPT Staff 1,646 Business (FY10) $1,074M NORTH CAROLINA IPT Staff 178 Business (FY10) $1,529M PWD Earle NWS Earle, NJ MCRCs – 48 Locations NOSCs – 40 Locations

6 Drive toward Sustainable Infrastructure & Renewable Energy! Push beyond LEED Silver Implement Low Impact Development (LID) Early Contract Involvement (USACE call it “Integrated Design-Bid-Build”) Determining pilot project for HR Benefits of DB and DBB for technically complex projects Zero safety mishaps Proactive involvement Accountability Turnkey approach with FFE Meet DOD Small Business Goals and Push 75% of Requirements to Design-Build NAVFAC Execution Goals

7 Navy Energy Saving Contracting Opportunities: – Energy Conservation Investment Program (ECIP) Part of MILCON program, projects btwn $300K - $4M Must be renewable (solar, wind, etc) – Financed Energy Projects (Projects must pay for themselves from savings) Energy Saving Performance Contracts (ESPC) – Contracts with Energy Service Companies (ESCOs) – Guaranteed savings, usually include O&M throughout repayment term Utility Energy Savings Contracts (UESC) – Utility sponsored programs – Quicker to implement than ESPC, typically smaller in scope Navy energy website: POC: Arnold Agustin, (757) MIDLANT Public Works Energy Program

8 FY12/13 Energy Special Project Program Program Amounts –$295M planned for FY12 –$312M planned for FY13 Scope considerations –Financial benefits (Include current work around costs, current repair costs and future replacement costs) –Energy savings $/MBTU –Include new retro and/or re-commissioning projects –Incorporate energy audit projects into program submission –Include roof and HVAC replacements –Focus on building envelope projects Criteria weighting – financial benefits (39%); – shore consumption reduction (9%); – reliable energy for critical infrastructure (26%); – regulatory compliance/stakeholder expectations (13%); and – development of enabling infrastructure (13%)

9 USMC Guidance on Roof/Solar Projects with complete roof replacements will incorporate roof-top solar thermal and/or photovoltaic systems Reflective roof products shall be used in combination unless cost prohibitive or not technically feasible Vegetative roofing systems considered on a case-by-case basis Ground mounted PV systems considered with limited roof area and/or improper orientation

10 Sustainable Systems Integration Model Example: JEB LC-FS Mandated Reductions Area: 2212 acres GFA: 4.4 M sf Facilities: 404 Buildings Population: 12,464 Water Demand MGY 0.63 MGD GHG Emissions 65,649 MTCo2eq/Yr (Non-mobile) Power Demand 127G Whr/Yr 28.77KWhr/SF 26 % 34 % 30 % 59 MGY Nearly 1/3 rd Olympic Swimming Pool/day 22,320 MTCo2eq/Yr 4,500 cars off the road 38 GWhr/Yr Power for 900 homes

11 Capital Improvement Highlights MILCON & BRAC Virginia - Hampton Roads –Special Operations Command – 1 Projects $ 19M –MCON - 20 Projects $263M –NATO – 1 Project$ 3M –Specials, Demo, Energy – 9 Projects$ 20M Hampton Roads $305M FY08-11 Hampton Roads $305M FY08-11 POC: CAPT(s) Eric Aaby, Patrick McCormack, /1502

12 MILCON Program Highlights MIDLANT Hampton Roads –Approximately $282M – Design Level 23% DB (3 projects) 77% DBB (10 projects) – Acquisition 38% Stand Alone (5 projects) 23% Admin/General/Industrial MACC (3 projects) 38% 8A MAC (5 projects) –Program Allocation NAVSTA Norfolk (7 projects) NAS Oceana (1 projects) NAVPHIBASE Little Creek (2 projects) Naval Weapons Station (NWS) Yorktown (2 projects) NSA Norfolk (1 projects)

13 Hampton Roads Highlights: FY11 P835Replace Fuel Pier, NAVSTA Norfolk($58M) P828Piers 9 & 10 Upgrade, NAVSTA Norfolk ($2.4M) P862Pier 1 Upgrades, NAVSTA Norfolk ($10M) P743Ordnance Cargo Logistics Trng, MWS Yorktown ($21.4M) P-835 Replace Fuel Pier, NAVSTA Norfolk P-835 Replace Fuel Pier, NAVSTA Norfolk

14 MILCON Construction Acquisition Tools & Milestones P No.Project NameActivity Project Dollar Amount Design Level Acquisition Method Acquisition Tool Issue IFB/RFP Current Projected Award Date Q773SOF SUPPORT ACTIVITY (SUPPACT) OPERATIONS FACILITY N61414: NAVPHIBASE LITTLE CREEK VA $18,669,000Design Build RFP - BVSS (One Step) MAC - General 7/6/1011/16/10 838E-2D FACILITIES UPGRADE N62688: NAVSTA NORFOLK VA $6,402,000Design Bid Build RFP - LPMAC - General 8/27/1012/17/10 743NAVY ORD CARGO LOGISTICS TRAINING COMPLEX N69212: NAVAL WEAPONS STATION YORKTOWN $21,346,000Design Build RFP - BVSS (One Step) MAC - General 9/22/102/25/11 879NORFOLK HARBOR CHANNEL DREDGING N62688: NAVSTA NORFOLK VA $42,830,000Design Bid Build IFB/ICBStand Alone Construction Contract 12/8/102/28/11 101ROAD IMPROVEMENTS CAMP ALLEN AREA N57095: NAVSUPPACT NORFOLK VA $1,700,000Design Bid Build RFP - LPMAC - 8A6/24/102/28/11 516ASHIP REPAIR PIER REPLACEMENT INC 2 OF 3 N62688: NAVSTA NORFOLK VA $100,000,000Design Bid Build RFP - BVSS (One Step) Stand Alone Construction Contract 5/27/103/31/10 828DDG 1000 UPGRADES TO PIERS 9 AND 10 UPGRADE N62688: NAVSTA NORFOLK VA $2,400,000Design Bid Build RFP - BVSS (Two Step) MAC - 8A1/24/115/4/11

15 MILCON Construction Acquisition Tools & Milestones P No.Project NameActivity Project Dollar Amount Design Level Acquisition Method Acquisition Tool Issue IFB/RFP Current Projected Award Date 202RIVERINE SQUADRON THREE BOAT STORAGE BUILDING N69212: NAVAL WEAPONS STATION YORKTOWN $1,920,000Design Bid Build RFP - BVSS (One Step) MAC - 8A DB3/1/115/19/11 132SOF CAFETERIAN60191: NAS OCEANA VA $14,170,000Design Build RFP - BVSS (Two Step) MAC - 8A DB2/3/117/8/11 835REPLACE FUEL PIER N62688: NAVSTA NORFOLK VA $58,000,000Design Bid Build RFP - BVSS (One Step) Stand Alone Construction Contract 11/9/107/11/11 600HOST NATION INFRASTRUCTUR E NC1002: Z/VARLOCS $2,700,000Design Bid Build RFP - BVSS (One Step) Stand Alone Construction Contract 7/10/099/30/11 862PIER 1 UPGRADES TO BERTH USNS COMFORT N62688: NAVSTA NORFOLK VA $10,035,000Design Bid Build RFP - BVSS (One Step) Stand Alone Construction Contract 4/22/1110/25/11 201RIVERINE SQUADRON TWO BOAT & VEHICLE MAINTENANCE FACILITY N61414: NAVPHIBASE LITTLE CREEK VA $1,890,000Design Bid Build --4/4/116/15/11 TOTAL $282,062,000

16 FY12 MILCON Program Highlights MIDLANT (Hampton Roads) POM12 OSD Submit (tentative until Congress Authorizes and Appropriates) – Approximately $366M –67% DB (4 projects) –33% DBB (2 projects) –Program Allocation NS Norfolk (2) NAB Little Creek (2) NNSY (1) NAS Oceana (1)

17 MIDLANT Summary Robust construction programs continuing –Energy program increasing Sustainable Behavior - LEED/LID Emphasis Focus on safety, quality & speed Contract Acquisition Strategies – Mostly full and open: MACC applicability reviewed – Small Business applicability reviewed for all acquisitions – Use of Design/Build vs Design/Bid/Build where appropriate – Interest in energy enhancements and other betterments Stakeholders jointly find Quality, Best-value solutions

18 Questions

NAVFAC MIDLANT 21 October 2010 Back-Up Slides Hampton Roads IPT

20 Solicitation & Award Venues: – FEDBIZOP’s address – – NECO’s (Navy Electronic Commerce Online) address – – NAVFAC Portal under Business Opportunities address – – POC: Acquisition Office, MIDLANT Summary

21 Field Offices Public Works Departments – 11 Installations Officer in Charge of Construction – Camp Lejeune, NC Resident Officer in Charge of Construction – Cherry Point, NC Integrated Product Teams Hampton Roads: VA, WV North Carolina: NC Northeast: PA, NJ, CT, RI, ME, NY, NH, VT, MA, MD, DE Business/Support Lines Capital Improvement Public Works Environmental Asset Management Contingency Engineering Acquisition, Financial Management, CIO, Counsel NAVFAC MIDLANT Organization

22 Design/Acquisition Planning Strategic Program Guidelines –Design Strategy Determine in-house capacity for RFP/design development –Construction Acquisition Strategy – general guidelines >$30M Stand Alone Full and Open <$30M Consideration for MACC applicability Small Business set-aside consideration given to all acquisitions, but generally applies to projects <$15M Planning becomes more tactical when the program is authorized –Variation from Design-Build when upfront design required due to Project complexity/Specific Design control Required Client desires Permitting requirements Need for IH design experience –Variations in Acquisition Strategy include Small Business goals and available capability MACC capacity and scope applicability Use Stand Alone where MACCs do not offer specialization (Piers/Airfields) Project packaging due to proximity of projects Timing of multiple solicitations

23 Typical Acquisition Approach Full and Open Competition Full and Open Set-Aside for Small Business Multiple Award Construction Contracts (As many as 6 contractors selected) –Small Business set-aside within MACC –Full and Open within MACC Indefinite Delivery Indefinite Quantity A&E Contracts – Follow-on Task Orders are negotiated Indefinite Delivery Indefinite Quantity Construction Contracts –Paving, Fencing, Roofing, Painting, Utility Distribution Facility Support Service Contracts –Vehicle Rental, Maintenance, Custodial, Grounds, etc.

24 Hampton Roads Highlights: FY Replace Minimart-Gas Station, NAVSTA, Norfolk($3.3M) P838E-2D Facility Upgrades, NAVSTA Norfolk($6.4M) Q773SOF Support Activities Operations, Little Creek($19M) Replace Minimart-Gas Station, Little Creek($5.2M) P132SOF Cafeteria, Oceana($14M) Replace Minimart-Gas Station, NAVSTA Norfolk

25 Special Projects & Demolition Acquisition Tools & Milestones Client Project Number Project NameActivity Project Dollar Amount Design Level Acquisition Method Acquisition Tool Issue IFB/RFP Current Projected Award Date RM SP- REPAIR LOWER BASE FLOOD GATES. N00129: NAVSUBASE NEW LONDON CT $1,200,000Design Bid Build Sole SourceMAC - Admin 9/6/1012/31/10 RM DD-2 RPL STOP LOGS WITH MOTORIZED SLUICE GATES N32443: NSA NORFOLK NAVY SHIPYARD $2,948,000Design Bid Build RFP - BVSS (One Step) -12/21/103/17/11 RM DRYDOCK 2 - REPAIR CAISSON 2 N32443: NSA NORFOLK NAVY SHIPYARD $4,696,000Design Bid Build RFP - BVSS (One Step) -3/17/117/8/11 DE375-08DEMO ST.J. BLDGS 13 & 46 N32443: NSA NORFOLK NAVY SHIPYARD $923,000Design Bid Build Sole SourceStand Alone Construction Contract 6/23/1012/31/10 DE187-08DEMO SJCA BLDGS (39, 41, 90 & M-4) N32443: NSA NORFOLK NAVY SHIPYARD $1,064,000Design Bid Build Sole SourceStand Alone Construction Contract 6/23/1012/31/10 DE134-07DEMO VARIOUS FACILITIES, BLDGS 117,118,178,703,2 38,1511 & M-23 N32443: NSA NORFOLK NAVY SHIPYARD $1,109,000Design Bid Build Sole SourceStand Alone Construction Contract 8/3/1012/31/10 DE A128 DEMOLITION N62688: NAVSTA NORFOLK VA $6,432,640Design Bid Build --5/23/117/12/11 TOTAL $18,372,640

26 Project No. Project NameActivity Project Dollar Amount Project Type Design Level Issue IFB/RFP Current Projecte d Award Date P1030Solar Ventilation PreheatJEB Little Creek/Ft. Story$774,000ECIPFY11 P1201GSHP and Solar WallNAS Norfolk$1,253,000ECIPFY11 TOTAL $2,027,000 Energy Projects Acquisition Tools & Milestones

27 MIDLANT Environmental Restoration Large Environmental Restoration Contracts CLEAN (Comprehensive Long-term Environmental Action, Navy) 2 contracts (CH2M Hill and TetraTech NUS) awarded in FY 08 by NAVFAC Atlantic. Current option expires MAY option year remaining. COR Lee Anne Rapp, (757) RAC (Removal Action Contract) 2 contracts AGVIQ (small business) and Shaw Environmental (large business) awarded in FY 08 by NAVFAC Atlantic. Current option expires MAY option year remaining. COR Zane Perry, (757) Upcoming Removal Actions (~ $1M) that will use above contracts: ABL, WV- Sites 1, 5, 10, SWMU 27Portsmouth NSYD, NH – DRMO Calverton, NY – Site 6aCutler, ME – Site 2 Bedford, MA – Site 4St Juliens Creek, Va – Site 21 Camp Lejeune, NC – Site 73 Naval Station Norfolk – Site 18 Mechanicsburg, PA – Storm DitchCamp Lejeune, NC – Site 35 POC: Nina Johnson (757)

28 MIDLANT Environmental Contracts Under Development Contract TypeScopeLocation of Work Contract Capacity/ Duration Type Projected IFB/RFP Projected Award Date Restoration Services EMAC – remediation system operation, removal actions Hampton Roads$80M/ 5 yrs Small Business Sources Sought Jan10 Nov 10 TOTAL $80 M POCs: Sean Heaney - (757) (Compliance) Bob Schirmer – (757) (Restoration) Dave Noble – (757) (NEPA)

29 Products and Services: Shore Infrastructure Plans (SIP), special studies, and project development –Regional Integration Plans, Regional Shore Infrastructure Plans, Installation Master Plans, Special Studies –Anti-Terrorism; Traffic/parking; Installation Appearance Plans (IAP) –Project development (1391s), Business Case Analysis, COA’s and siting studies –Base-wide Asset Evaluations (AE) and Basic Facilities Requirements (BFR) with Facility Planning Document (FPD) update and Planning Actions Encroachment Studies: –Assessments of “encroachment” threats to military bases, ranges and military air training routes: Encroachment Action Plans (EAP) –AICUZ/RAICUZ –May lead to “Encroachment Partnering” Contracts: –Continue to use 2 ongoing local 5- year $ M IDIQ Planning contracts, held by LANT) Asset Management (Planning)

30 MIDLANT Asset Management (PPV) Public Private Ventures (PPV): Navy leverages private developer expertise & debt placement Construction, renovations, asset and property management for military families and unaccompanied (bachelor) service members DoN’s private partners own and operate the inventory and contract for all services, including design/build. For design/construction opportunities, must contact private partners. Refer to OSD PPV website for existing project info: Ongoing Housing PPV projects : Mid-Atlantic, Lincoln Property Company, ~ 5,857 homes Hampton Roads Bachelor Housing, Hunt/ACC, ~ 3,682 beds Northeast, Balfour Beatty, ~ 3,121 homes Camp Lejeune/Cherry Point, Actus Lend Lease, ~ 8,059 homes Mid-Atlantic San Diego, Location: DC, MD, Lincoln Property Company, ~ 259 homes Mid-Atlantic Phase III/Camp Lejeune Phase IV, Lincoln Property Company, ~ 200 homes Future Housing PPV projects: Mid-Atlantic Phase IV/Camp Lejeune Phase V, Lincoln Property Company – 4Q FY10 Camp Lejeune Phase VI – 2Q FY11 POC: Dawn Baronner, (757)

31 Asset Management (Planning) PWD Desired Engr/Planning Studies/Hiring Desired Start PWD New LondonSmall Craft Boat Basin Concept Study1Q FY11 PWD NorfolkNS Norfolk Traffic and Parking Study1Q FY11 PWD NSA NorfolkRoof Study - LRA2Q FY11 PWD MaineMaster Plan for the USS Constitution2Q FY11 PWD NSA Norfolk Multi-Purpose Trail Study4Q FY11 PWD PennsylvaniaSpace Consolidation Analysis3Q FY11

32 MIDLANT Asset Management (Real Estate) Enhanced Use Leasing (EUL): Navy leverages private developer expertise & debt placement Construction, repair, improvements and maintenance in exchange for entitlements to Navy Real Estate Navy EUL Web Site for current status: Multiple sites now under Phase I development. Additional sites are under consideration for future opportunities. 2 sites in Phase II process: Active Procurements: SUBASE New London, CT: 43,500 SF parcel of land SUBASE New London, CT: SE Corner Retail, 4 acres NAVSTA Norfolk, Norfolk, VA: South Depot Annex, 12 acres Upcoming RFQs: NAB Little Creek, VA: Approx 8 Acre parcel of land POC: Mitch Cooperman, (757)

33 Hampton Roads area: Current Term Expires Hampton Roads 8(a) Design/Build MAC: AUG 11 – Chesapeake Contractors JV, LLC – Bay Electronic Company, Inc. – Arriba Corporation – York River Electric – THR Enterprises, Inc. Hampton Roads IPT MACCs

34 Hampton Roads area: Current Term Expires Hampton Roads General MAC: DEC Options – Hourigan Construction Corp. – Centennial Contractors Enterprises, Inc. – M. A. Mortenson Company – Archer Western Contractors, LTD – Sauer Incorporated dba Sauer Southwest – Tesoro Corporation – Virtexco Corporation – W. M. Jordan Company, Inc. Hampton Roads IPT MACCs

35 Mid-Atlantic area: Current Term Expires MIDLANT Hangar/Industrial: JUN Options – Vanguard Contractors – M. A. Mortenson – American Bridge Co – Hourigan Construction – Coakley & Williams Construction MIDLANT Administrative Design/Build MAC SEP Options – John C. Grimberg Co. – The Haskell Company – M. A. Mortenson – Archer Western – Hourigan Construction Corp Hampton Roads IPT MACCs

36 Current Term Expires Personnel Support & Administrative Facilities – VirginiaSEP 11 – HR, Virginia Area and Part of North Carolina – Cederquist, Rodriquez, Ripley, PC BDA Rodriquez, Ripley, Maddux, & Motley Civil Design & Engineering ServicesMAY 11 – MIDLANT AOR – R. Kenneth Weeks Engineers  Repairs and Alterations to Petroleum StorageMAR 11 – MIDLANT AOR – Austin Brockenbrough & Associates, LLP Hampton Roads IPT A/E Contracts

37 Current Term Expires Structural/Waterfront Design and Engineering ServicesNOV Options – HR, Virginia Area and Part of North Carolina – DBA - NRW Engineering, PC – K. Roomsburg Architectural Design & Engineering ServicesOCT Options – HR, Virginia Area and Part of North Carolina – HBA – H&A Joint Venture  Civil/Structural/Waterfront Services SEP Options – MIDLANT AOR – Transystems Corp Architectural Design & Engineering ServicesMAR 11 – MIDLANT AOR – HBA Architecture & Interior Design, Inc  Architectural Design & Engineering ServicesAPR Options – HR, Virginia Area and Part of North Carolina –AECOM Hampton Roads IPT A/E Contracts

38 Hampton Roads area:Current Term Expires Painting and Vinyl Coating Wall Covering MAR 11 – Taylor Enterprises Hampton Roads RoofingMAR option – Construction & Cabling Specialists, Inc Hampton Roads IPT Construction IDIQs

39 Hampton Roads Facility Support Contracts Contracts are Performance Based & SBA Programs are utilized wherever possible Pending Solicitations Issue RFP Award – Annual Tank and POL Lines Services DEC 10 APR 11 – Maintenance of Direct Digital NOV 10MAR 11 – Annual Diving Services NOV 10FEB 11 – Regional Custodial MAY 11SEP 11

40 Current Term Expires Personnel Support, Administrative & Training FacilitiesSEP Option –MIDLANT AOR Civil Design & Engineering ServicesMAY 11 –MIDLANT AOR Architectural Design & Engineering ServicesMAR 11 –MIDLANT AOR Repairs and Alterations to Petroleum StorageMAR 11 –MIDLANT AOR Industrial/Operations Facilities FEB 11 –MIDLANT AOR MIDLANT A/E Contracts POC: Acquisition Office (757)