NAVFAC Execution Plan For Economic Stimulus TFS erection

NAVFAC Execution Plan For Economic Stimulus TFS erection at training site 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 Programmed Amounts $ BILLIONS BRAC 05 GWOT Economic Stimulus Notional Go. J Guam MC MCON Guam Grow The Force Defense MCNR FH CON MC MCON Navy MCON Reprogramming Requests SRM Major Contract Awards & WIP MILCON Carry. Over Execution $ BILLIONS WIP 40 Projects Major Contract Awards 22 Projects Total Carry-over End of FY 08: $80 M FISCAL YEAR

American Recovery and Reinvestment Act Implementing Guidance • “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. 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 Military Construction Operations & Maintenance RDT&E (Energy) Family Housing, Construction Family Housing, O&M Homeowners Asst. Program BRAC Procurement Other (IG) TOTAL: Army Air Force Reserve & ANG Air. NG Active Sub. Total 180, 000 50, 000 230, 000 1, 474, 530 364, 570 1, 839, 100 1, 095, 960 39, 040 1, 135, 000 75, 000 34, 510 80, 100 3, 930 16, 460 0 0 0 0 1, 767, 970 414, 570 2, 182, 540 1, 447, 520 89, 040 1, 536, 560 Dept of Navy USMC Active Reserve 208, 000 0 72, 000 0 657, 050 55, 080 113, 870 39, 910 75, 000 940, 050 55, 080 185, 870 Subtotal 280, 000 865, 910 75, 000 0 0 0 39, 910 1, 220, 910 Defense Wide (D-W) 1, 450, 000 400, 000 75, 000 555, 000 15, 000 2, 495, 000 Navy Do. D Share (ex. D-W) 28% 19% 33% ------20% Total 2, 190, 000 4, 240, 010 300, 000 114, 610 20, 390 555, 000 0 0 15, 000 7, 435, 010 Navy Do. D Share (incl. D-W) 9% 17% 25% ------13%

NAVFAC ARRA Execution Appropriation Projects Amount MCON BEQs Energy CDCs $100 M $80 M O&M – FSRM Infrastructure repairs, RM backlog projects, Utilities systems and PV installation $916 M Medical MILCON New Construction and Alterations $638 M ECIP TBD Up to $120 M RDTE TBD Up to $75 M USAF MILCON TBD TOTAL: approximately $2 B

Project Categories – MCN Based on Do. N’s ARRA Project Lists MCN TOTAL = $280 M Major Categories Category # of CWE ($000 K) Proj Construct/Repair BQs 3 $100 M Construct/Repair CDCs 7 $80 M Energy Projects 4 $55 M - Photovoltaic Systems (2) - Facility Energy Improvements (2) Utility Recap - Steam Plant Decentralization - Rpl A/C Water Dist $35. 5 M $15. 5 M 6 $45 M $22. 6 M $20. 0 M

Project Categories – O&M, N Based on Do. N’s ARRA Project Lists Major Categories Category Energy Projects # of Proj CWE ($000 K) 17 $265. 6 M - Bldg Photovoltaic Systems (4) - Adv Meter Install & Sys Integration (3) - Facility Engineering Improvements (9) - Geothermal Well Drilling (1) Air Operations $142. 9 M $92. 5 M $21. 0 M $9. 1 M 8 - Runway/Taxiway/Apron Repairs (5) - Repair/Modernize Hangars (2) - Repair Air Traffic Control Bldg. (1) Port Operations $115. 9 M $36. 8 M $3. 6 M 10 - Wharf/Pier Repair (2) - Repair Caissons (2) - Bldg/Trng Facilty Rpr/ Renovations (2) - Repair Berths (2) - Pier Lighting/HVAC (2) Quality of Life - King Hall Galley Renovations Annapolis - BQ Repairs/Renovations (7) - Repairs to CDC $156. 3 M $90. 5 M $25. 9 M $21. 2 M $18. 6 M $14. 4 M $10. 2 M 9 $97. 7 M $60. 9 M $36. 0 M $0. 7 M O&M, N TOTAL = $657 M

Project Categories – O&M, NR Based on Do. N’s ARRA Project Lists O&M, NR TOTAL = $55 M Major Categories Category Reserve Centers # of Proj CWE ($000 K) 9 $40. 2 M - NOSC Facility Modernization (8) - HVAC Renovation (1) Air Operations - Rpr/Rpl Airfield Lighting - Repair Hangar Doors $37. 4 M $2. 8 M 2 $14. 8 M $12. 5 M $2. 3 M

Project Categories – O&M, MC Based on Do. N’s ARRA Project Lists Major Categories Category Energy and Utility O&M, MC TOTAL = $113 M # of Proj CWE ($000 K) 26 $74. 6 M - Facility Energy Improvements (10) - Boilers/HVAC (14) - Other Utility $45. 3 M $27. 4 M $1. 9 M 6 - Rpr Water Main - Rpr Comm Cables on Ranges - Gas Line, Steam Sys & Sewer Rprs (4) Strategic Improvement Initiative $5. 0 M $4. 8 M $4. 0 M 6 - Training Facilities (3) - Utility Infrastructure (2) - Road Repairs (1) Energy Projects - Install Photovoltaic Systems (2) - Geothermal Well Drilling - Install Solar Lights $13. 8 M $8. 7 M $3. 8 M $3. 6 M $1. 3 M 4 $7. 5 M $3. 6 M $2. 5 M $1. 4 M

Contract Tools • • • Global Contingency Construction Contract - Multiple Award Unrestricted Cost Contract with three Contractors (Two Joint Ventures). Approximately $800 M of $1 B 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 $350 M 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 $15 M with $500 M 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 $15 M with $400 M 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. $250 M capacity. FEC Contracts – various FFP tools already in place that include MACCs, JOC’s, ID/IQ and BOS contracts.

Back-ups

OMB Accountability Areas Qualified Personnel Overseeing Recovery Act funds • • • 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.