US Army Corps of Engineers BUILDING STRONG®

U.S. Army Corps of Engineers presentation to

2011 NC Federal Construction & Infrastructure Summit

MG Jeffrey J. Dorko Deputy Commanding General Military and International Operations U.S. Army Corps of Engineers 20 OCT 2011

BUILDING STRONG®

Agenda

Current Operations What’s Changing? Paradigm Shift Building Solutioneers Value Proposition Our Focus

Border Fence, Imperial Sand Dunes, CA

Kabul Road, Bagram, Afghanistan

FORSCOM HQ, Fort Bragg, NC

USACE Military Programs Missions

Community Hospital, FT Belvoir, VA

National Geospatial Center, FT Belvoir, VA

Al Mamoon Communications Tower, Baghdad, Iraq

Military Construction

Base Realignment and Closure (BRAC)

Overseas Contingency Operations (OCO)

Installation Support

Environmental

Energy and Sustainability

Interagency Support

International Services

Real Estate Services

COCOM Support

Research and Development

Geospatial Products/Services

BUILDING STRONG® 2011

1964 - 2009

2010

BRAC

BUILDING STRONG®

Overseas Contingency Operations

261Barracks

262Barracks

263Central Heating

Plant

264Barracks

267Barracks

265Barracks

271DFAC

LP

G

DH

W

DH

W

DH

W

DH

W

DH

W

DHW

SouthB

BM

TA

Nk

BiomassSystem

BUILDING STRONG®

Pentagon to cut spending by $78 billion

Senate panel cuts $6.4 billion from Pentagon request GovExec

DoD expects up to $100B more in cuts

BUILDING STRONG®

Military Missions Program Trends FY00-15

Fiscal Year

Program ($Millions)

Current $ as of Mar 11 (FY12 PB) FY09-10 Includes Military Carryover – FY 00 -15 AR, AF and DOD Reimbursable is separate

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 10 11 12 13 14 15

Army Construction

Air Force Construction

Engineering & Design

DOD

Host Nation/FMS

Environmental

OCO RDT&E

Other

ARRA

RE

ECIP

AR,AF & DOD Reimbursable

7

BUILDING STRONG®

What is Changing in Military Programs?

Reduction in MILCON program and number of projects Increased requirements for energy and sustainability

products and services Change in customer mix reducing the Army and increasing

the Air Force and DOD program (% of program) Increased potential requirements for Restoration and

Modernization of existing facilities Increased potential requirements to support COCOM

theater engagement Increased customer expectation for enterprise solutions

8

BUILDING STRONG®

Legislation, Executive Orders, and Policies

55 FEDERAL MANDATES

BUILDING STRONG®

Statutory Goal 30% by 2015

DOD Energy Intensity

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BUILDING STRONG®

Army’s Net Zero Hierarchy

“The primary goal is a focus toward net zero and when we talk about net zero, it's

not only net zero energy, but it's net zero energy, water, and waste. When you look at the term "net zero" or a hierarchy of net zero you must start with reduction, then progress through repurposing, recycling, energy recovery, disposal being the last. “

Ms Katherine Hammack, ASA(IE&E)

BUILDING STRONG®

USACE Engagement in Energy Efficiency Delivering energy saving solutions through education, training and technology

Specifically -

At the Building level

• Model for energy savings / Life Cycle Cost Analysis on every project • 40 to 55 percent energy savings • Better insulated facilities / improved HVAC, more efficient controls, better lighting and conserving water

At the Installation level

• Energy Master Plans / Area Development Plans • Central Utility Plants / Co-generation Plants • Micro grids, Meters and Renewable sources

At the Operational level

• Base Camp design, micro grid, portable and renewable sources

(Solar Hot Water Panels)

261Barracks

262Barracks

263Central Heating

Plant

264Barracks

267Barracks

265Barracks

271DFAC

LP

G

DH

W

DH

W

DH

W

DH

W

DH

W

DHW

SouthB

BM

TA

Nk

BiomassSystem

12

BUILDING STRONG®

Paradigm Shift Surge Era •Military Programs •Commodity •Energy/sustainability as a consideration •Transformation •Service Supplier

Post Surge Era •Military Missions •Value •Energy/sustainability as a driver •Innovation •Systems Integrator

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BUILDING STRONG®

Solutioneering

14

BUILDING STRONG®

Building Solutioneers

Foundational Competitive Distinguisher

Core Competencies

Execution Focus Integrated Project Delivery

Accountability Diverse Tech Knowledge

Expeditionary

Table Stakes

Risk Management Cost Effective/ Efficient

Value Proposition Employer of Choice

Process Improvement Virtual Capability

Critical Success Factors

Systems Thinking Learning Organization Alliance Development

Strategic Sense Making Innovation

Customer Relationships Scalability Flexibility

15

BUILDING STRONG®

Developing a Value Proposition “Great brands share four fundamental qualities:

They offer and communicate a clear, relevant customer promise. They build trust by delivering on that promise. They drive the market by continually improving the promise. They seek further advantage by innovating beyond the familiar.”* *Barwise and Meehan, “The One Thing You Must Get Right When Building a Brand,” Harvard Business Review, December 2010.

The basis of our value proposition is….

“problems solved with you, for you”

16

BUILDING STRONG®

Customer Value Proposition Health Affairs

DoD Education Agency

Installation Management Command

Defense Logistics Agency

BUILDING STRONG®

Our Focus

18

Military Missions Business Processes

- Enterprise Customer Program Management Plans - Codification of MILCON Transformed Processes - Military Programs Directorate Organizational Design

Energy & Sustainability

- Building-Level Optimization - Installation-Level Energy Performance Strategies - Operational Energy Initiatives - Deployment of Renewables - Joint Service Engineer Strategies

Military Missions Methods of Delivery

- Centers of Standardization - Installation Support - Acquisition Strategies and Tools - Enterprise Delivery of Energy Solutions

COCOM Support

- Overseas Contingency Operations - Theater Engagement Strategy Support