TFS erection at training site

NAVFAC Execution PlanFor Economic Stimulus

25 February 2009

Bloomberg: “Buffett Says the U.S. Is in Midst of an ‘Economic Pearl Harbor’ “* Investor Warren Buffet says we are in the economic equivalent of a Pearl Harbor, rattled by an initial attack and facing a lack of confidence that is creating further damage. He believes President Barack Obama is the exact type of leader we need to get us through the mess. * He also believes it would be wrong to bet against the U.S.

The “Oracle of Omaha”

“The President’s legislation is a major milestone for our Country’s recovery and the Department of the Navy will make the immediate investments necessary to put people back to work doing the work America needs done. The Department of the Navy has,

already in place, executable projects to ensure the Navy maintains the level of readiness expected of it. Our efforts will not only contribute to America’s recovery, it

will contribute to a strong America” Secretary of the Navy

NAVFAC Construction Program

0.01.02.03.04.05.06.07.08.09.0

10.011.012.013.0

2007 2008 2009 2010 2011 2012 2013 2014 2015

Major Contract Awards & WIP

$ BILLIONS

714

317

830

12271318

363

712

349

0

200

400

600

800

1,000

1,200

1,400

1,600

Oct 06 Oct 07 Oct 08 Jan 09

Millions of $

MILCON W/ BRAC & GWOT

DON MILCON

Total Carry-overEnd of FY08: $80M

40 Projects

22 Projects

MILCON CarryOver Execution

Reprogramming Requests

0.0

2.0

4.0

6.0

8.0

10.0

2004 2005 2006 2007 2008 2009 2010 2011

FISCAL YEAR

Major Contract Awards

WIP

Programmed AmountsNotional GoJ GuamMC MCON GuamGrow The ForceDefenseMCNRFH CONMC MCONNavy MCON

BRAC 05GWOT

SRM

$ BILLIONS

Economic Stimulus

• “Unprecedented Transparency” - Commitments will receive high levels of public scrutiny, with the website www.recovery.gov serving as a public venue for accountability and transparency of ARRA outlays.

• OMB has issued guidance outlining crucial accountability objectives:– Funds are awarded and distributed in a prompt, fair, and reasonable

manner; – The recipients and uses of all funds are transparent to the public,

and the public benefits of these funds are reported clearly, accurately, and in a timely manner;

– Funds are used for authorized purposes and instances of fraud, waste, error, and abuse are mitigated;

– Projects funded under this Act avoid unnecessary delays and cost overruns;

– Program goals are achieved, including specific program outcomes and improved results on broader economic indicators.

American Recovery and Reinvestment Act Implementing Guidance

Emphasis on Transparency and Effectiveness

ARRA Contract Requirements• Prime Contractor Reporting on Recovery.gov

– Monthly completion status of project – Jobs created and/or retained by the project– Subcontractor data

• Buy American Provision– Iron, steel & manufactured goods produced in USA– Waivers approved by OSD– Trade Agreements Act applies over $7.5 million

• Source Selection Requirements– Evaluation criteria for jobs retained and workforce

expansion – Along with standard criteria of past performance, small

business, technical capability, etc.

American Recovery and Reinvestment Act Service Comparison

ActiveReserve &

ANG SubTotal ActiveReserve &

AirNG SubTotalMilitary Construction 180,000 50,000 230,000 180,000 50,000 230,000 1,450,000 2,190,000Operations & Maintenance 1,474,530 364,570 1,839,100 1,095,960 39,040 1,135,000 400,000 4,240,010RDT&E (Energy) 75,000 75,000 75,000 75,000 75,000 300,000Family Housing, Construction 34,510 34,510 80,100 80,100 114,610Family Housing, O&M 3,930 3,930 16,460 16,460 20,390Homeowners Asst. Program 0 0 555,000 555,000BRAC 0 0 0Procurement 0 0 0Other (IG) 0 0 15,000 15,000

TOTAL: 1,767,970 414,570 2,182,540 1,447,520 89,040 1,536,560 2,495,000 7,435,010

Active Reserve Active ReserveMilitary Construction 208,000 0 72,000 0 280,000 28% 9%Operations & Maintenance 657,050 55,080 113,870 39,910 865,910 19% 17%RDT&E (Energy) 75,000 75,000 33% 25%Family Housing, Construction 0 -- --Family Housing, O&M 0 -- --Homeowners Asst. Program 0 -- --BRAC 0 -- --Procurement 0 -- --Other (IG) 0 -- --

TOTAL: 940,050 55,080 185,870 39,910 1,220,910 20% 13%

Defense Wide(D-W)

Total

Navy USMCDept of Navy

Subtotal

Army Air Force

Navy DoD Share

(ex. D-W)

Navy DoD Share

(incl. D-W)

NAVFAC ARRA ExecutionAppropriation Projects Amount

MCON BEQsEnergyCDCs

$100M$100M$80M

O&M – FSRM Infrastructure repairs, RM backlog projects, Utilities systems and PV installation

$916M

Medical MILCON New Construction and Alterations $638M

ECIP TBD Up to $120M

RDTE TBD Up to $75M

USAF MILCON TBD TBD

TOTAL: approximately $2B

Project Categories – MCNBased on DoN’s ARRA Project Lists

Category # of Proj

CWE ($000K)

Construct/Repair BQs 3 $100M

Construct/Repair CDCs 7 $80M

Energy Projects- Photovoltaic Systems (2)- Facility Energy Improvements (2)

4 $55M$35.5M$15.5M

Utility Recap- Steam Plant Decentralization- Rpl A/C Water Dist

6 $45M$22.6M$20.0M

MCN TOTAL = $280M

Major Categories

QOL - BQ35%

QOL - CDC29%

Utility Recap16%

Energy Projects20%

Project Categories – O&M,NBased on DoN’s ARRA Project Lists

Category # of Proj

CWE ($000K)

Energy Projects- Bldg Photovoltaic Systems (4)- Adv Meter Install & Sys Integration (3)- Facility Engineering Improvements (9)- Geothermal Well Drilling (1)

17 $265.6M$142.9M$92.5M$21.0M$9.1M

Air Operations- Runway/Taxiway/Apron Repairs (5)- Repair/Modernize Hangars (2)- Repair Air Traffic Control Bldg. (1)

8 $156.3M$115.9M$36.8M$3.6M

Port Operations- Wharf/Pier Repair (2)- Repair Caissons (2)- Bldg/Trng Facilty Rpr/ Renovations (2)- Repair Berths (2)- Pier Lighting/HVAC (2)

10 $90.5M$25.9M$21.2M$18.6M$14.4M$10.2M

Quality of Life- King Hall Galley Renovations Annapolis- BQ Repairs/Renovations (7)- Repairs to CDC

9 $97.7M$60.9M$36.0M$0.7M

O&M,N TOTAL = $657MMajor Categories

OMN Airfields25%

OMN Base Support4%

OMN Energy - Advance Metering

14%

OMN Energy - Alternative23%

OMN Energy - Facility Improvements

3%

OMN QOL - BQ5%

OMN QOL - OTHER9%

OMN Roofing2%

OMN Shipyard7%

OMN Utility Recap1%

OMN Waterfront7%

Project Categories – O&M,NRBased on DoN’s ARRA Project Lists

Category # of Proj

CWE ($000K)

Reserve Centers- NOSC Facility Modernization (8)- HVAC Renovation (1)

9 $40.2M$37.4M

$2.8M

Air Operations- Rpr/Rpl Airfield Lighting - Repair Hangar Doors

2 $14.8M$12.5M$2.3M

O&M,NR TOTAL = $55M

Major Categories

OMNR Airfields27%

OMNR QOL - OTHER73%

Project Categories – O&M,MCBased on DoN’s ARRA Project Lists

O&M,MC TOTAL = $113MMajor CategoriesCategory # of

ProjCWE

($000K)Energy and Utility- Facility Energy Improvements (10)- Boilers/HVAC (14)- Other

26 $74.6M$45.3M$27.4M$1.9M

Utility- Rpr Water Main - Rpr Comm Cables on Ranges- Gas Line, Steam Sys & Sewer Rprs (4)

6 $13.8M$5.0M$4.8M$4.0M

Strategic Improvement Initiative- Training Facilities (3)- Utility Infrastructure (2)- Road Repairs (1)

6 $8.7M$3.8M$3.6M$1.3M

Energy Projects- Install Photovoltaic Systems (2)- Geothermal Well Drilling- Install Solar Lights

4 $7.5M$3.6M$2.5M$1.4M

OMMC Energy and Utility72%

OMMC SII8%

OMMC Utility13%

OMMC Energy Projects7%

Contract Tools• Global Contingency Construction Contract - Multiple Award Unrestricted Cost

Contract with three Contractors (Two Joint Ventures). Approximately $800M of $1B capacity remains. Scope includes construction and major repair in support of contingency operations and natural disaster recovery, as well as exercising those capabilities.

• Global Contingency Services Contract - Single Source Competitively Awarded Unrestricted Cost Contract. Approximately $350M of capacity remains. Scope includes repairs and renovations to real property.

• Global Multiple Award Construction Contract (Large) – Multiple Award Unrestricted Cost/FFP Contract for projects over $15M with $500M total capacity to be awarded by June.

• Global Multiple Award Construction Contract (Small) - Multiple Award FFP Contract set-aside for Small Business for projects up to $15M with $400M total capacity to be awarded by June.

• Advanced metering Infrastructure Contract – Multiple Award IDIQ for the design, procurement, installation, testing, and sustainment of building advanced metering solutions in support of the Energy Policy Act of 2005. $250M capacity.

• FEC Contracts – various FFP tools already in place that include MACCs, JOC’s, ID/IQ and BOS contracts.

Back-ups

OMB Accountability Areas

• NAVFAC has a large technical staff experienced in Program and Project Management, Engineering and Design, and Construction Management.

• NAVFAC’s Business Management System (BMS) is a web based, authoritative source for consistent corporate business processes, ensuring professional technical oversight of all engineering and construction contracts.

– BMS allows employees to obtain easy access to applicable informational resources used in work performance such as templates, forms, policies, guidance, sample documents, and online sites.

• NAVFAC requires its engineers and architects to be licensed in accordance with state professional engineering/architectural licensure boards. Over 75% of our professional engineers and architects hold current state licenses which give them the authority to practice engineering and architecture in accordance with local building and safety codes.

– Our engineers and architects are also DAWIA trained and certified. • NAVFAC has extensive experience in fast tracked design build construction and the ability to leverage the Architect & Engineering (A&E)

contract community to handle surges in workload. We also require our A&E community to meet the same requirements for state licensure to ensure the highest quality and safety in all construction projects.

• NAVFAC leads the federal government in the use of Design-Build contracting for facilities and infrastructure. We have developed proven Performance Technical Specifications and standard Design-Build templates for various facility types such as barracks and child development centers.

• NAVFAC has comprehensive community management plans for aggressively hiring technical and contract personnel and developing them into journeymen professionals.

• NAVFAC presently has over 800 contract specialists and is aggressively hiring interns to further enhance its contracting capability. • NAVFAC's Process Management and Audit Program (PMAP) is a structured program for acquisition oversight that provides a comprehensive

process review of the Acquisition Business Management System processes, files and contracting practices. • NAVFAC’s engineers and architects employ Design Quality Assurance from project inception and planning to completion of the final

technical design, as well as a Construction Quality Management program that combines the resources of our technical staff with the contractor’s quality control organization.

Qualified Personnel Overseeing Recovery Act funds