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US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Army MILCON Transformation… Army MILCON Transformation… UpdateUpdate
MT Standards & Criteria Team LeaderHeadquarters, U.S. Army Corps of Engineers
NCSU Engineer Forum21 May 2007
US Army CorpsUS Army Corpsof Engineersof 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
OverviewOverview
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
DASA(I&H) DirectionDASA(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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
IGPBS
Army Modular Forces
BRAC 05
MIL
ITA
RY
WO
RK
LO
AD
OVER TIME
Multiple ‘Peaking’ Programsw/Critical Facilities Needs
Critical Questions…How much, when?
TempTemp BldgsBldgs
NOW Installations
MILCON/GWOT Spt
Our Challenge!!!Our Challenge!!!
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Align with Industry…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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
USACE Reinventing USACE Reinventing MILCON Processes on MILCON Processes on
the Flythe Fly
Winning GWOT
Winning GWOT
Winning GWOT
Winning GWOT
Innovation &
Innovation &
Improvement
ImprovementInnovation &
Innovation &
Improvement
ImprovementTraining
Training
Training
Training
Quality of
Quality of
LifeLife
Quality of
Quality of
LifeLife
Business Business
Efficiencies
EfficienciesBusiness Business
Efficiencies
Efficiencies
Manning
Manning
the Force
the Force
Manning
Manning
the Force
the Force
Quality Outcomes
BRAC
BRAC
Execution
Execution
BRAC
BRAC
Execution
Execution
MILCON
MILCON
Execution
Execution
MILCON
MILCON
Execution
Execution
MILCON Pro
cess
MILCON Pro
cess
Reinvention
Reinvention
MILCON Pro
cess
MILCON Pro
cess
Reinvention
Reinvention
Statio
nin
gS
tation
ing
Statio
nin
gS
tation
ing
Inherently lin
ked Activitie
s
MIL
CO
N
MIL
CO
N
Tran
sform
ation
Tran
sform
ation
MIL
CO
N
MIL
CO
N
Tran
sform
ation
Tran
sform
ation
Mo
du
lar Fo
rce
Mo
du
lar Fo
rce
Initiative
Initiative
Mo
du
lar Fo
rce
Mo
du
lar Fo
rce
Initiative
Initiative
Real Estate
Real Estate Support
Support
En
virom
ental
En
virom
ental
Su
pp
ort
Su
pp
ort
“USACE must reinvent MILCON processes while executing Mission requirements and implementing MILCON Transformation”
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Framing the StrategyFraming 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
The Model RFP… The Model RFP… Time, Cost, Quality?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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
The Model RFP… The Model RFP… What It doesWhat 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
After Award?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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Pilots & Lessons LearnedPilots & 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Contracting ProceduresContracting 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Some Differences Between Some Differences Between Public and Commercial Public and Commercial
Design-BuildDesign-Build
Government- Competition in
Contracting ActFollow-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 RequiredOn-Going Relationships are CommonQuality Based Selection is Common
Price Often Established After Design StartsCan Use “Guaranteed Maximum Price”FAR has no Exact Comparable Pricing Method
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Contracting ProceduresContracting Procedures
• Developing the Request For ProposalSection D - Proposal Submission Requirements, Evaluation Criteria and Basis of AwardRFP Sections 00110 & 00120 or 00111
• 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Award BasesAward Bases“Best Value Continuum”“Best Value Continuum”
(FAR 15.101)(FAR 15.101)
• Two General Approaches:
– Lowest Price, Technically Acceptable Proposal– Cost/Quality Trade-off Process
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
"Lowest Price, "Lowest Price, Technically Acceptable Technically Acceptable
Proposal"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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
"Lowest Price, "Lowest Price, Technically Acceptable Technically Acceptable
Proposal"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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Cost/Quality Trade-off Cost/Quality Trade-off ProcessProcess
• Quality may be More, Less, or Equally Important than Price Must be Determined and Stated – FAR 15.304 (e)
• Relative Importance of Each Factor, including Price, must be Stated - FAR 15.304 (d)
• Trade-off determines “Best Value”
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Cost/Quality Trade-off Cost/Quality Trade-off ProcessProcess
• 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Proposal Evaluation Proposal Evaluation CriteriaCriteria
• 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
““Evaluation Standards”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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
““Proposal Evaluation Proposal Evaluation CategoriesCategories
• “Quality” Information
– “Design-Technical”
– “Performance Capability”
• “Price” or “Cost” Information
• Oral Presentations (Optional)
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
““Two-Phase Design-Two-Phase Design-Build Selection Build Selection
Procedures FAR 36.3Procedures FAR 36.3
Primary Considerations For Using 2 Primary Considerations For Using 2 PhasePhase Considerable Design Proposal Costs?• Technical Proposal Provides
Quality/Innovation Advantages to Gov’t?• Expected Number of Offers?
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
““First Phase”First Phase”
Primary Considerations For KTR Primary Considerations For KTR QualificationsQualifications
Past PerformancePast ExperienceManagement
Key personnel
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Phase 1: Open Phase 1: Open CompetitionCompetition
• Conducted in Accordance with FAR 36.303-1
• 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Purpose of Purpose of Performance Capability Performance Capability
ProposalProposal• 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Phase 2: Phase 2: Only Most Only Most Highly Highly
Qualified OfferorsQualified 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 CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Phase 2: Only Most Phase 2: Only Most Highly Highly
Qualified OfferorsQualified 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 2005-7, Use of Stipends
in MILCON Funded D-B Projects
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Purpose of Technical Purpose of Technical ProposalProposal
• Provides the Government Enough Information to Determine Whether the Design Proposals Meet or Exceed the Minimum Requirements.
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Typical Design-Technical Typical Design-Technical CategoriesCategories
• Technical Approach (Narratives)• Specifications• Drawings• Renderings• Design Calculations• List of Materials, Catalog Cut Sheets• Models/Brand Names
US Army CorpsUS Army Corpsof Engineersof Engineers
One Corps Serving the Army and the Nation
Required Level of Detail for Required Level of Detail for Technical Submission Technical Submission
InformationInformation
• 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 CorpsUS Army Corpsof Engineersof 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 CriteriaPrice Not The Key Evaluation Criteria