US Army Corps of Engineers BUILDING STRONG ® US Army Corps of Engineers BUILDING STRONG ® Society of American Military Engineers Northern Virginia Chapter Lloyd C. Caldwell, P.E., SES Director, Military Programs 25 April 2013

BUILDING STRONG ® Agenda Overview and Missions MILCON & Environmental Programs Overview Strategic Context and Direction Project Delivery USACE Support to DoD Energy Programs FY13 Military Construction Contracting Forecast 2

BUILDING STRONG ® USACE Overview  USACE provides value for the Nation and diverse stakeholders.  Across the globe, we deliver positive impacts for today and tomorrow - in construction, natural resource management, energy and sustainability and capacity building, disaster response, contingency support, and more.  We deliver services in partnership with industry based on historically strong collaborative and innovative working relationships. 3

BUILDING STRONG ® Kabul Road, Bagram, Afghanistan FORSCOM HQ, Fort Bragg, NC USACE Military Missions National Geospatial Center, FT Belvoir, VA  Military Construction  Overseas Contingency Operations (OCO)  COCOM Support  Installation Support  Environmental  Real Estate Services  Interagency and International Services  Energy and Sustainability FOB Leatherneck, Afghanistan USAG Humphries High School (DODEA) School and Cyclone Shelter, Bangladesh 2012

BUILDING STRONG ® Military Missions Program Trends FY00-16 Program ($Millions) As of 19 Apr 13

BUILDING STRONG ® MILCON OVERVIEW MILCON FY 13 & Prior Total Program 219 projects / $6.5B EOY Execution Projection 194 projects / $5.9B  Army – 86 projects / $2.6B  Air Force – 16 projects / $388M  DOD – 71 projects / $2.8B  ECIP – 21 projects / $76M MILCON FY14 President’s Budget Projects / $4.0B  Army – 41 projects / $1.2B (MCA, MCAR, AFHC, AFHI)  Air Force – 29 projects / $577M (MCAF, MAFR, FHAF)  DOD – 47 projects / $2.2B ( DODM, DODS, DLA, MCN, MCDA, MDAM, NSA,SOF)  ECIP – 9 projects / $40M 6

BUILDING STRONG ® Alaska Pacific Ocean North Atlantic Northwestern Southwestern South Pacific South Atlantic Seattle Portland Sacramento San Francisco Los Angeles Honolulu Omaha Kansas City Chicago Tulsa Little Rock Mobile Savannah Norfolk Ft. Worth Louisville Baltimore New York Albuquerque Districts Outside the US: Europe (Germany) Far East (Korea) Japan Great Lakes & Ohio River Atlanta Other Special Assignments: Huntsville Engr & Spt Center (Chemdemil) TAC-Winchester (Africa, Bosnia, Mid East) St Louis District - Archaeology Philadelphia District-Brokered MILCON Mobile District (Panama, Puerto Rico, etc) Dallas Cincinnati LEGEND: Div./Regional HQ location District HQ location Division boundary District boundary State boundary Military Construction Division and District Boundaries (FY14 President’s Budget) NWD 21/$720M LRD 19/$608M SPD 24/$431M POD 12/$551M SAD 19/$380M 7 # Projects/Funding TAD 1/$45M SWD 9/$374M NAD 21/$925M

BUILDING STRONG ® Alaska Pacific Ocean North Atlantic Northwestern Southwestern South Pacific South Atlantic Seattle Portland Sacramento San Francisco Los Angeles Honolulu Omaha Kansas City Chicago Tulsa Little Rock Mobile Savannah Norfolk Ft. Worth Louisville Baltimore New York Albuquerque Districts Outside the US: Europe (Germany) Far East (Korea) Japan Great Lakes & Ohio River Atlanta Dallas Cincinnati LEGEND: Div./Regional HQ location District HQ location Division boundary District boundary State boundary FY14 Environmental Programs ($1.3B) NWD $259M LRD $78M NAD $305M SPD $146M POD $129M SWD $150M SAD $130M 8 HNC $130M MVD $25M

BUILDING STRONG ® What is Changing and Where are We going? 9

BUILDING STRONG ® Strategic Context 1.005B Current GSF End Strength Funding Real Property Mil Missions Strategic Focus Timely Delivery of Surge Construction Transformation BRAC05 and Realignment Grow the Army Continued Streamlining of Process Integration of technical capabilities across facilities life cycle enabling smart capital investment decisions of the Installation Management Community Army Facility Strategy 2020 MILCON Transformation New Construction Centric Spans full Facilities Life Cycle; MILCON last resort 10

BUILDING STRONG ® WHERE ARE WE GOING? Master Plan Area Development Plan DBB or DB RFP Design ENV Restoration RE Acquisition Construction Contract Admin Centralized Furniture Assessment R&M Projects FRP Regional MATOCs RE Disposal Disposal Integrated, technical capabilities across the full facilities life cycle providing solutions to complex engineering & construction problems ConstructionPlanning Fit-Out Sustainment and R&M

BUILDING STRONG ® Principal Acquisition Methods Design-Bid Build Design-Build Adapt-Build (for Army Standard Facilities) Standard Facilities Acquisition via geographic districts Centers of Standardization responsible for Army Standards/Criteria, maintaining Standard Designs, and Adapt-Build Models Developing regional models (based on climate zone) and updating standard designs for energy. Trends Less reliance on MATOCs for Military Construction; more stand-alone contracts* Reemphasizing use of 2-step procurement process for Design-Build (ensure sufficient design development in RFP for 1-step procurements) Other Services developing facilities standardization programs. Interest in more centralized management of Restoration and Modernization Programs *Use of MATOCs will continue for more specialized work and when procurement time is limited (eg. end of FY installation support Project Delivery Trends 12

BUILDING STRONG ® USACE Support to DoD Energy Program  Achieving savings 5-10 percent better on average over EPAct 2005 levels Strive to meet Energy Independence and Security Act (EISA 2007) by designing energy efficient facilities using current industry standards that promote life-cycle cost (LCC) effective energy efficient measures  Renewable energy sources integrated into projects when LCC effective  Seeking opportunities to immerse new technologies LEED Certification – Level Silver Army is developing Energy Use Intensity (EUI) targets for standard facilities to establish a baseline that ties directly into the Army’s metering system (MDMS) Intent is total accountability, designer, builder and operator

BUILDING STRONG ® Installation Energy & Sustainability USACE Adds Value… Support Net-Zero Initiative (energy, water and waste, 18 Installations) Life Cycle Approach (planning, design, construction, commissioning, operation, sustainment and disposal) Sustainment Restoration and Modernization (SRM), deep energy cuts, up to 50 percent Support planning and execution of alternative financing strategies  Energy Savings Performance Contracts  Utility Energy Saving Contracts  Power Purchase Agreements  Enhanced Use Leases Regional Energy Centers of Expertise (knowledge creation and sharing)

BUILDING STRONG ® 15 Support to DoD and the Nation- Today and Tomorrow Support the Combatant Commands’ security activities and the efforts of other U.S. government agencies around the globe to advance our Nation’s interests. Partner with the Installation Management Community at all echelons to deliver and maintain enduring installations and contingency basing Support the Nation and the Army in achieving energy security and sustainability goals