Military DesignBuild Opportunities The North Carolina Perspective

1
Military Design-Build OpportunitiesThe North
Carolina Perspective
ACEC-NC FEDERAL FORUM McKimmon Center, NCSU,
Raleigh, NC 19 May 2009

• Joseph A. Angell II, PE, CCM
• Commander, CEC, US Navy (Ret)
• Director, Federal Activities
• KCI Technologies
• Director, DBIA NC Chapter
• President, SAME Coastal Carolina Post
• Chair, ACEC-NC Design-Build Committee
• Co-Chair, ACEC Federal Agencies Procurement
  Advisory Committee (DoD Subcommittee)

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Objective

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Camp Lejeune, NC 2-3 Billion 15,000 Marines
Families
Fort Bragg, NC 2-4 Billion 20,000 Soldiers
Families

• Headquarters Buildings
• Barracks
• Vehicle Maintenance Facilities
• Training Facilities

• Headquarters Buildings
• Barracks
• Vehicle Maintenance Facilities
• Training Facilities
• Community Support Facilities

3
Military Design-Build OpportunitiesThe North
Carolina Perspective

• Objective

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Opportunity and Challenge for the NC Based
• Design-Builder

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method

• Challenge
• High Percentage of Construction and Design Work
  Being Performed by Out-of State Firms
• Current Estimate is Approximately 50 of
  subcontracting and 90 of Design
• 250 Million of Subcontracts/year
• 1,800 6,300 Engineer-Designer years
• 360 - 1,260 Engineer-Designers/year

• Opportunity
• Assume 1 Billion/year in requirements
• Assume 50 of contract is subcontracted -
  500M/year
• 5-10 Design Fees - 200 - 700 Million
• 2,000 7,000 Engineer-Designer years
• Approximate 5 year program
• 400 1,400 Engineer-Designers/year

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Reasons for Lack of In-State Execution

Lack of Experience with Design-Build Delivery
Method
Lack of Experience with Military Buyers and
Selection Boards
4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Lack of Experience with Federal Contracts and
Liability Issues
Work Force Restrictions
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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Reasons for Lack of In-State Execution

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Lack of Experience with Military Buyers and
Selection Boards

• Challenges
• Installation Acquisition Offices Located
  Out-of-State
• Savannah District in Savannah, GA executes work
  for Fort Bragg
• Further Complicated by Centers of
  Standardization (CoS) Initiative
• NAVFAC Mid-Atlantic in Norfolk, VA executes work
  for Camp Lejeune
• Little or Know Familiarity with Source Selection
  Officials
• Other State-wide Work Meeting Needs of NC Design
  Firms
• Limited Military Experience to show on Proposals
• Limited Knowledge of Selection Criteria and
  Procedures

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Reasons for Lack of In-State Execution

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Lack of Experience with Design-Build Delivery
Method

• Challenges
• Vast Majority of Projects in NC executed under
  Design-Bid-Build Method or Construction
  Management at Risk Method
• Limited Use by
• NC Department of Transportation
• Charlotte-Mecklenburg School System
• Limited Partnering Relationships with Builder
  General Contractors

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Reasons for Lack of In-State Execution

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Lack of Experience with Federal Contracts and
Liability Issues

• Challenges
• General Contractors Concerned with Design
  Liabilities in D-B Relationship (typically in an
  adversarial relationship with Engineer-Designer)
• Very few General Contractors have Military
  Contract Experience and do not have Staff
  Knowledgeable in the Management of these
  Contracts
• Many General Contractors Fear the High Cost of
  Buy-In to Pursue Military Work

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Reasons for Lack of In-State Execution

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Work Force Restrictions

• Challenges
• Lack of Qualified and Experienced
  Superintendents, Labor and Designers to Perform
  this Work
• General Contractors Completing K12 and Higher
  Education School Bond Work
• Lack of Qualified General Contractor Work Force
  to Access Military Installations

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Efforts Underway to Increase In-State Execution

Lack of Experience with Design-Build Delivery
Method
Lack of Experience with Military Buyers and
Selection Boards
4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Lack of Experience with Federal Contracts and
Liability Issues
Work Force Restrictions
11
Military Design-Build OpportunitiesThe North
Carolina Perspective

• Efforts Underway to Increase In-State Execution

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Lack of Experience with Military Buyers and
Selection Boards

• Efforts
• Political Support
• NC Military Business Center NC Military
  Foundation Established
• Publishes all Military Solicitations and Emails
  Matches to NC Firms based on Corporate Profile
  Established in MatchForce.org website
• Provides Free Service in Preparing Responses to
  Military Solicitations
• Requesting Acquisition Data from DoD to
  Determine Amount of Work Awarded to and
  Subcontracted to NC Construction Related Firms
• Held Several Professional Association Forums and
  Seminars with Acquisition Officials to Introduce
  NC Firms
• Pursuing Marketing Efforts to show Relevant
  Experience on Proposals

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Efforts Underway to Increase In-State Execution

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Lack of Experience with Military Buyers and
Selection Boards

• Efforts
• Pursuing Marketing Efforts to show Relevant
  Experience on Proposals
• Headquarters Buildings Office Building or
  Office Park
• Barracks Dormitory, Garden Style Apartments or
  Senior Living Facility
• Vehicle Maintenance Facility Jiffy Lube (on
  steroids)
• Training Facilities Classrooms or Athletic
  Facilities
• Community Support Facilities Churches, Office
  Buildings, Retail, Restaurants, Gymnasiums

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Efforts Underway to Increase In-State Execution

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Lack of Experience with Design-Build Delivery
Method

• Efforts
• Established DBIA Chapter in NC to Provide
  Training and Support in use of Design-Build
  Delivery Method
• Held Joint Professional Association Design-Build
  Forum to Discuss Issues and Opportunities
• Conduct Classes in QA/QC, Safety, Submittals,
  etc.
• Discussing Teaming Arrangements with General
  Contractors and others
• Working with NC State University to Develop a
  Design-Build Consortium to Train Business Leaders
  in the Design-Build Delivery Method

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Efforts Underway to Increase In-State Execution

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Lack of Experience with Federal Contracts and
Liability Issues

• Efforts
• Education through NCMBC, DBIA and NC State
  University
• Develop Key Sub-consultant Relationships with
  Firms with Federal Contract Administration and
  Management Expertise
• Develop Partnering Agreements that Detail
  Responsibilities and Liabilities for all Parties
  on Military Design-Build Contracts

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• Efforts Underway to Increase In-State Execution

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
Work Force Restrictions

• Efforts
• Teaming and Joint Ventures Between Firms to Pool
  Resources to Compete for Larger Projects
• Continue to Hold Discussions with General
  Contractors on Military Opportunities and Pending
  End of K12 and Higher Education Bond Programs
• Seeking State Support to Assist in Documenting
  Construction Workers to Access Military
  Installations

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The North Carolina Solution

State of NC Leadership, Agencies Departments
ACEC PENC
Engineering Firms
US Congress
4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
NCSU/DBIA Partnership
NC Military Business Center Construction Initiativ
e
CAGC ABCC
General Contractors Subcontractors
Fort Bragg, NC 2-4 Billion
SAME Posts
AIA
DBIA-NC
Architecture Firms
Camp Lejeune, NC 2-3 Billion
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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The North Carolina Success Story in Progress

Engineering Firms
Architecture Firms
Fort Bragg, NC 2-4 Billion In New Facilities
4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
General Contractors
Camp Lejeune, NC 2-3 Billion In New Facilities
Specialty and Sub Contractors
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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The Military Design-Build Process

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method

• Design-Build Contract Solicitation Process
• Presolicitation Phase
• Identify Projects of Interest
• Identify how those projects will be executed
• Small Business Set-asides
• MATOC/SATOC/MACC
• Center of Standardization Execution
• GET ON TEAMS! We are not Primes!
• Long Term Relationships Matter!
• Work with GCs You Have Worked With Before
• Sources of Information
• North Carolina Military Business Center
• www.ncmbc.us
• FedBIZOPPS www.fbo.gov
• Agency Websites - various

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The Military Design-Build Process

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method

• Design-Build Contract Solicitation Process
• Sources Sought Notice
• Formalize Teaming Relationships
• Ensure Contract Risk Equals Contract Reward
• Phase 1 Solicitation
• Focus on Qualifications and Past Performance
• Be Closest to the Center of the Bullseye
• References Matter!
• Recent and Relevant!
• Short List Announcement 4 to 5 Firms
• Phase 2 Request for Proposal
• Develop 35 Design for Contractor to Price
• Develop Designer Price Proposal
• Develop Schedule to Prepare the Design
• Formalize Contract with Prime Risk Reward

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The Military Design-Build Process

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method

• Design-Build Contract Design Process
• Packages to be Submitted
• Site Civil Package
• Permit Applications
• Erosion Control Grading
• Stormwater Management
• Utility Connections
• Site Design
• Building Orientation
• Environmental Features
• Parking Areas/Roads
• Utilities
• Foundation/Building Design (Optional)

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The Military Design-Build Process

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method

• Design-Build Contract Design Process (Cont)
• Additional Packages to be Submitted
• Building Design
• Floorplans
• Elevations
• Structural Systems
• Interior Finishes
• Furnishes, Fixtures and Equipment (FFE)
• Mechanical/Electrical/Plumbing Systems
• Fire Protection/Life Safety
• Anti-Terrorism/Force Protection Systems
• Security Systems
• Communication Systems (SIPR/NIPR)

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The Military Design-Build Process

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method

• Design-Build Contract Design Process (Cont)
• Additional Services to be Provided
• Post Award Kickoff Meetings
• Partnering Workshops
• Concept Design Workshops
• BIM Building Information Modeling
• LEED Program Preparation
• Design Phase Documentation
• Construction Phase Documentation
• USGBC Submissions Defense
• Construction Administration
• Submittal Review
• Request for Information Processing
• Support for Proposed Change Orders
• As-Built Drawing Preparation
• Specialty Contractor Quality Control Reps

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The Military Design-Build Process

• Design-Build Contract Design Process (Cont)
• Goals for Design Team
• Keep Prime Contractor on Schedule
• Obtain Permits from State or Local Agencies
• Obtain Notice to Proceed from Federal
  Contracting Agency
• Schedule Constraints
• Federal Agency entitled to Review Periods for
  each Package Submittal
• Site Civil Package 14 - 21 days
• Building Packages 21 - 28 days
• Contract details number of Submittals for each
  Design Package
• Site Civil Package
• 2 Submittals (95 100)
• Building Packages
• 3 Submittals (50, 95 100)

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The Military Design-Build Process

• Design-Build Contract Design Process (Cont)
• Takeaways
• Keep Prime Contractor Happy!
• Long Term Relationships Matter
• No Secrets
• No Separate Deals with the Agencies
• Schedule Matters - ALOT!
• Take Care of Your Design Partners
• You May Be Working For Them Next Time
• Your Design is Your Future Make it Right!
• Some of Something is Better than All of Nothing!
• Watch the Bait Switch with People and
  Materials
• There is No Free Lunch It Takes to Play!

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The Military Design-Build Process

• Design-Build Contract Design Process (Cont)
• Moving Forward
• Designer/General Contractor Discussions
• CAGC/ACEC-NC/DBIA-NC/ABC
• Risk Sharing Builder vs. Designer
• Risk Sharing DB Team vs. Government
• Put QBS Back in the Selection Process
• Increase Value of the Design Team
• Devalue Contractors Who Switch Designers
• NC Construction Industry Respect in Military
  Market Value Local Knowledge
• Train NC Construction Industry Professionals in
  Military Design-Build Procedures
• NCMBC/PTAC
• NC State University
• DBIA-NC

4-7 Billion USACE/NAVFAC Military
Construction 75-90 Delivered Thru
Design-Build Method
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Military Design-Build OpportunitiesThe North
Carolina PerspectiveQuestions??
ACEC-NC FEDERAL FORUM McKimmon Center, NCSU,
Raleigh, NC 19 May 2009

• Joseph A. Angell II, PE, CCM
• Commander, CEC, US Navy (Ret)
• Director, Federal Activities
• KCI Technologies
• Phone [phone]
• Email joe.angell_at_kci.com

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Military Design-Build OpportunitiesThe North
Carolina Perspective

• The Military Design-Build Process