Regional Dredging Acquisition Strategy October 26, 2006

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

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

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

South South Atlantic Atlantic Regional RegionalBusinessCenter Mobile Regional Mobile Regional Contracting Center Contracting Center Savannah Regional Contracting Center SAD Regional Contracting Jacksonville Regional Jacksonville Regional Contracting Center Contracting Center

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

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 ACQUISITION TRENDS IN SAD CONSTRUCTION

SAD ACQUISITION TRENDS IN FY-07 uLess than 5% of ALL Solicitations Will Be Sealed BidDownward Trend Will Continue! u25% plus 8(a), But More Competitive Than Negotiated Matches u70% of Construction Design-Build – Primarily Army uIf not Design-Build, then Price – Performance Trade-Off uMATOCs and SATOCs Will Serve as Primary Contract Vehicles for Military Construction in ALL of USACE

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

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

Regional Contracting SAJ Has Contracting Lead for the SAD SAJ Has Contracting Lead for the SAD Dolly Colwell, Contract Specialist, SAJ for MATOC Establishment 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. 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 Four Solicitations Issued to Determine MATOC Contractors for Groups I, II, III & IV Solicitations Will Be Staggered; Not Issued Simultaneously Solicitations Will Be Staggered; Not Issued Simultaneously

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

Using MATOCs For Ordering Work (Task Orders) Ordering Officials – SAD Procuring Contracting Officers (PCOs) Ordering Officials – SAD Procuring Contracting Officers (PCOs) Task Orders Against MATOCs: 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

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

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

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

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

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

Points of Contact Dolly Colwell SAJ Dolly Colwell SAJ Cindi Tolle SAJ Cindi Tolle SAJ Laura Harrell SAD Laura Harrell SAD Angie Premo SAD Angie Premo SAD Bob Prince SAD Bob Prince SAD Leo Hickman SAM Leo Hickman SAM Sherrel Bunn SAS(W) Sherrel Bunn SAS(W)

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. 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. 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. 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. Release of Pricing Information Done in Strict Accordance with FOIA and FAR Rules.