91st Cyber Ops Industry Day Slides 30 Sep 26.pdf

U.S. ARMY CORPS OF ENGINEERS: INDUSTRY DAY

U.S. ARMY CORPS OF ENGINEERS:

INDUSTRY DAY

91st Cyber Operations Center Lackland Air Force Base, TX

Progressive Design Build under Other Transaction Authority

Sign In/Registration

1. Welcome & Introductions

2. Progressive Design Build (PDB) and Other

Transaction Authority (OTA) process

3. Open Book Cost Estimating

4. Project Overview, Scope of Work, Technical

Requirements & Site Location & Conditions

5. Small Business Partnership Goals

6. Summary & Key Takeaways

7. Feedback & Input

8. Contracting Opportunities

Agenda

Agenda

Introductions

Introductions USACE – Fort Worth District (SWF) 91st Cyber Ops Center Project Delivery Team (PDT)

• Mr. Bryant Garcin – Project Manager

• Mr. Nick Johnston– Agreements Officer (AO)

• Mr. Ali Abughazleh – Engineering Technical Lead

• Mr. John Deville– SWF Cost/Price Analyst

• SFC Jordan Kennedy – Agreements Specialist

• Mr. Ryan Sands – SWF Construction Technical Lead

• Mr. Daryl Flaggs – JBSA Section Chief

What is Progressive Design-Build (PDB)?

What is Progressive Design-Build (PDB)?

• Early Alignment: Aligns Gov’t & Industry Goals early.

• Open Book Collaboration: Transparency in estimating drives informed decisions.

• Iterative & Flexible: Evolves strategy & solves challenges early.

• Off Ramp Protection: Exit points protect gov’t at key milestones.

• Overlapped Execution: Design & Construction

Optimized.

• Better Outcomes: Deliver facilities with more cost & schedule confidence.

OT STATUTORY

AUTHORITY:

10 U.S.C. § 2808a, Facility Construction or Repair:

Transactions Other Than Contracts and

Grants

EARLY ALIGNMENT

Aligns Government & Industry Goals Early

OPEN BOOK COLLABORATION

Transparency in estimating drives informed decisions

ITERATIVE & FLEXIBLE

Evolves Strategy & Solves Challenges Early

OFF RAMP PROTECTION

Exit points protect Government at key milestones

OVERLAPPED EXECUTION

Design and Construction Optimized

BETTER OUTCOMES

Deliver facilities with more cost and schedule confidence

KICKOFF & ALIGNMENT SCHEMATIC DESIGN BUDGET LOCK DESIGN DEVELOPMENT DECISION GATEWAY TO

PHASE 2

AGREEMENT PHASE 1 – DESIGN & PRECONSTRUCTION SERVICES (OT Agreement using MILCON Design Funds)

PRECONSTRUCTION

READINESS

Outcome: Government Authorizes Phase 2 Construction when Cost, Scope, Schedule and Risk are Acceptable

AGREEMENT PHASE 2 – FINAL DESIGN & CONSTRUCTION (OT Agreement using MILCON Construction Funds)

Risk Informed Project Alignment Meeting

• Goals & Objectives

• Risk Workshop

• Success Metrics

• Communication Plan

Concept Solutions

• Further Alternatives

• Innovation Opportunities

• Risk Reduction

Schematic Design Development

• Develop Design

Concepts

• Evaluate Systems

• Confirm Approach

Budget Estimate Submission

• Level 3 Cost Estimate

• Cost Confidence Package

• Scope/Schedule Validation

Advance Design (Technical Development)

• Tailored Design

• Engineer Analysis

• Constructability Reviews

Integrated Schedule Development

• Long Lead Item Identification

• Resource Planning

Execution-Ready Integrated Solution

• Coordinate Estimate

• Constructability

• Risk Mitigation

Government Decision

• Scope Confirmed

• Cost Validated

• Risk Accepted

• Negotiate Phase 2:

Construction

Pre-Construction Work

• BCOES

• Permitting

• Early Submittals

• Site Readiness

Open Book Estimate / Revised GECWE / Open Book Estimate / IGE

Switch to Fixed Price

1. Project Requirements

• Mission Need

• Performance Objectives

• Industry Outreach /

Market Intelligence

• SCO OTA Approval

FINAL DESIGN / CONSTRUCTION DOCUMENTS

(OVERLAPPING)

CONSTRUCTION (OVERLAPPING w/ DESIGN) REDZONE / BENEFICIAL OCCUPANCY TURNOVER /

CONSTRUCTION

COMPLETE

LONG LEAD / EARLY

WORK

• Early Site Acquisition

• Site Access

• Site Preparation

• Early Package

• Punchlist

• Red Zone Commissioning

• Joint Occupancy (if needed)

• Beneficial Occupancy

• Base Certification

• Turnover / Construction Complete

• Close Out

• Success Letter, if applicable

• Mission Complete!

• Complete Construction Documents

• Permitting & Submittals

• Ongoing Design Development

• Submittals & Coordination

AUTHORIZE PHASE

2 CONSTRUCTION

• Receive MILCON Construction Funding

• Issue Modification to Agreement

• Obligate Funding

• Decision Milestones

• Green Light Long Lead Item Procurement

• Execute Construction in Work Packages

• Foundations / Structure

• Building / Systems

• Interior / Exterior

• Site Utilities

• Continuous Quality & Safety Reviews Construction Continues

3. Statement of Qualifications

(SOQs)

• Industry Submits SOQs

• Government Evaluation

4. Down-Select

• Government

Selects Best Qualified Offers

• Invite Firms to Pitch Presentations

6. Qualifications Based Selection

(QBS)

• Government Selects

Best Qualified Offeror

7. Negotiate OT (Phase 1) Services

• Scope of Ph 1 Design/ Preconstruction Services

• Performance Metrics

8. Award OT (Phase 1)

Agreement

• Award Other

Transaction Agreement

GOVERNANCE

& OVERSIGHT

• Tailored Oversight

• Periodic Reporting

• Cost, Schedule, Performance Reviews

• Risk Management

Why PDB with

OT?

OFF RAMP

DECISION POINT

OFF RAMP

DECISION POINT

2. Request for Qualifications

(RFQ)

• Finalize Requirements

Package

• Industry Day / Notice

• Publish Solicitation

5. Pitch Presentations

• Offeror Presentations / Meetings / Interviews

• Q&A

• Site Visit, if applicable

PROGRESSIVE DESIGN-BUILD (PDB) WITH OT

End-to-End Process for MILCON Projects

PRE-AGREEMENT: PLANNING, SOLICITATION, & AWARD

Right Authority.

Right Collaboration.

Right Outcome.

30 JUN 2026

What is an Other Transaction (OT)?

What is an Other Transaction (OT)?

• A legally binding agreement used by the Government under specific statutory authority (e.g., 10 U.S.C. § 2808a) that is not governed by the Federal Acquisition Regulation (FAR).

• Provides maximum flexibility to structure agreements that support collaboration, innovation, and speed, especially for complex or non-traditional projects.

1. Enables collaborative cost refinement

• Early budget transparency allows:

• Collaborative cost development / validation during design

• Negotiation of a realistic Target Price / GMP

2. Reduces Risk-based Pricing & Contingency

• With immature design and unvalidated budget, contractors under traditional DB must price unknown risk

• Budget clarity drives more accurate pricing

3. Strengthens Government–Industry Partnership

• Signals transparency and trust

• Aligns both parties toward a shared outcome

Open Book Cost Estimating

Open Book Cost Estimating

• Project Title: 91st Cyber Operations Center

• Purpose: Construct a Cyberspace Operations Center in support of Air

Combat Command’s 91st Cyber Operations Squadron worldwide mission.

• Location: Security Hill Campus, Lackland AFB, TX

Project Overview

Project Overview

Scope of Work & Technical Requirements

Facility Size:

• Approximately 42,000 sq ft.

Primary Function:

• The facility enables Offensive Cyberspace Operations in accordance with delegated authority to satisfy Combatant Commander’s requirements.

• Redundant power supply, including generators.

• Innovative construction methods and materials: modular and off-site construction, 3D printing, self-healing concrete, high-performance insulation or other innovative methods and materials.

Features:

Security:

• Intelligence Community Directive (ICD) 503/705

• MCFES 20-01.

• CNSSAM TEMPEST 01-13

• UFC-4-01-05 SCIF/SAPF Planning, Design, and Construction

• UFC-4-010-01 Anti Terrorism Requirements

• CMMC Level 1.

Construction:

• Permanent construction in accordance with DoW Unified Facilities Criteria (UFC) and Lackland AFB Installation Facility Standards.

Site Conditions

Site Conditions

• Public Utilities

• American Water – Sewer

• San Antonio Water System – Water

• CPS Energy – Gas, Electric

• Hazardous, Toxic and Radiological Waste

• No HTRW associated with this site.

• Archeological

• Site previously disturbed. No survey required.

• JBSA Soil Management Plan must be followed.

• Solid Waste Management Plan must be generated. Excess soils hauled away.

• Air Pollution

• New Source Review Permit must be obtained prior to construction.

Project Schedule

Project Schedule

• 27 Oct 26: SOQs Due

• 10 Nov 26: Down Select Decision

• 07-09 Dec 26: Pitch Presentations

• 18 Dec 26: Firm Selection

• Mar 27: Award Agreement Phase 1

• Jul 27: Phase 2 Start

• FY28: Phase 1 Complete

• Nov 29: Construction Complete

Procurement Approach

• Program Solicitation: to include the Request for Qualifications/White Papers, is expected to be posted from 13 October to 27 October 26 at SAM.gov.

• Delivery Model: Progressive Design-Build (PDB)

• A collaborative partnership between the Government and the Design-Build team from the early stages of design.

• Focuses on de-risking the project, optimizing design, and aligning on cost and schedule.

• Procurement Instrument: Other Transaction (OT)

• Authorized under Title 10 U.S.C. §2808a.

• Provides flexibility compared to traditional FAR-based contracts, allowing the process to be tailored to the project's unique needs.

Procurement Approach Notes

• This sam.gov announcement, including all stated attachments and any websites incorporated by reference, constitutes the entire solicitation and forms the basis for all content resulting in the OT.

• The Government anticipates completing the competitive selection process within approximately sixty (60) days of solicitation release. Performers who are interested in proposing but unable to meet the approximate timeline may be removed from consideration for award.

• Accelerated Design with fast-track design/construction packages.

• Anticipate early site work construction start and long-term lead item procurement.

• Our goal is to start construction while design is underway with continuous development of Guaranteed Maximum Price (GMP).

• Multiple modifications to agreement for design and construction packages is anticipated.

• Negotiations can include, GMP, Phased Construction, Design Requirements

• Construction will only proceed with packages that have completed required Government review, have sufficient design maturity and pricing certainty, and are cleared for construction.

• The GMP will be developed from packages as they are completed while design continues on the remainder of the project.

PDB Path Forward

Solicitation Attachments

• The RFQ and White Paper serves as an initial screening gate to down-select viable PDB Teams.

• The PDB OT model includes attachments (e.g., project requirements, RFP for white papers, evaluation plan).

• Down selected firms will receive SOOs and draft articles and DIV 01s.

• Providing these materials early:

• Enables full understanding of the agreement structure, terms, and expectations.

• Allows PDB Teams to prepare for pitch presentations, if selected.

• Reduces ambiguity and negotiation friction, accelerating award execution.

Acquisition Pathway

STEP 1: Request for Qualifications

STEP 1: Request for Qualifications •You Submit a 20-Page White Paper

• We evaluate Team Composition and Organization, Relevant Project Experience, PDB/OTA Execution Approach, Project Understanding and Risk Management, Key Personnel, $96 million Phased Bonding Capacity •We may invite up to 3 Team(s) for Pitch Presentations •Full package to not exceed 30 pages.

STEP 2: Pitch Presentations

• The most qualified teams are down selected and invited to an interactive pitch presentation. This is an oral presentation which can be in varied format to include virtual or in-person presentations or formal interviews. The presentation will include a Question and Answer (Q&A) session to evaluate the team's real-time innovative design-build solutions, collaboration, and problem-solving abilities, not to discuss price. If appropriate, a site visit prior to pitch presentations can be offered.

GOAL: To demonstrate that your team is one of the most highly qualified Design-Builders in the nation for this specific type of complex project and demonstrate proven success together as a PDB-Team.

Factor 1 — Team Composition & Organization

• Designer, Builder, Subs, and Specialty partners.

• Clear roles, responsibilities, and decision structure.

• Ability to collaborate in PDB/OTA.

Factor 2 — Relevant Project Experience

• Similar mission-critical, secure, federal/DoD projects.

• Cyber, intelligence, communications facility experience.

• Demonstrated cost, schedule, and quality performance.

Factor 3 — PDB with OTA Execution Approach

• Describe approach to execute Phase 1 design and preconstruction services.

• Collaboration on cost, schedule, and security.

• Process to mature scope, cost, schedule, and risk.

Factor 4 — Project Understanding & Risk Mgmt.

• Describe the project from the contractor’s perspective.

• Identify major risks for successful execution.

• Understand security, site, and schedule requirements.

Factor 5 — Key Personnel

• Identify which positions are key for project delivery.

• Identify personnel and role in each part of project.

• Explain how each person is critical for project delivery.

Factor 6 — $96M Phased Bonding Capacity

• Demonstrated $96M bonding capacity.

• Single-project, aggregate, and remaining capacity.

• Go/no-go financial capability requirement.

STEP 1: Request for Qualifications

STEP 1: Request for Qualifications

Step 2 determines which Design-Build Team is the best fit to work collaboratively with the Government and advance toward award. The invitation will provide detailed instructions for all submission requirements and evaluation activities.

The Pitch (The "Chemistry Check")

• An interactive oral presentation used to evaluate the team’s communication, PDB experience, and overall project understanding and potential COAs.

• Will include a Question and Answer (Q&A) session to evaluate the team's real-time innovative design-build solutions, collaboration, and problem-solving abilities, not to discuss price.

Upon conclusion of the pitch presentations, the Evaluation Team will come to consensus on who is considered the most highly qualified design-builder.

Goal: To prove to the Government that you have both the technical expertise and the collaborative mindset to be our long-term partner for this critical facility.

STEP 2: Pitch Presentations (By Invitation Only)

STEP 2: Pitch Presentations (By Invitation Only)

The OT will be awarded in two parts: Phase 1 and Phase 2 (FY27):

Phase 1 Award — Design and Pre-Construction Services:

The selected Design-Build Team will be awarded an OT for Phase 1. For early design package(s), construction work may be performed during the design and pre-construction phase as negotiated. The agreement will be modified for each phase of construction.

If Negotiations fail for Design and Pre-Construction efforts during Phase 1:

• The Government may cease negotiations and proceed with the next highest qualified Design-Build team.

Phase 2 Award— Final Design and Construction:

Multiple modifications to the agreement are expected during Phase 2 to expedite construction as design packages are negotiated. The final Phase 2 modification to agreement will include the final GMP. The GMP must fit within the appropriated price of the project.

The Off-Ramp: The Government's Protection The Government is not obligated to award Phase 2.

• If a fair price cannot be negotiated for final design and construction, the contractual off-ramp allows USACE to retain the design and procure construction separately.

Award Structure The Off-Ramp

Award Structure & The Off-Ramp

OT Flexibilities

• Not governed by the FAR

• Flexible evaluations (white papers, pitch sessions, iterative discussions)

• Tailored OT agreement structure

• Collaborative Progressive Design-Build approach

• Open-book pricing and iterative scope refinement

• Early stakeholder collaboration and iterative refinement

• Faster acquisition timelines

• Additional stakeholder engagement

• Milestone-based fixed-price structure

Construction Laws Still Apply

• Davis-Bacon / applicable labor law compliance

• OSHA & EM 385-1-1 safety requirements

• Environmental compliance

(NEPA/UFC/installation standards)

• Payment & Performance bonds

• Cybersecurity / CMMC Level 1 requirement

• Fiscal law / Anti-Deficiency Act compliance

• Security, export control, DPAS priority rating

Construction Laws Applicable to OTAs

Construction Laws Applicable to OTAs

Small Business Partners

Small Business Partners

• Commitment to Small Business Participation is not a separately rated evaluation factor.

• Small business participation is encouraged but is not required as a condition of eligibility under 10 U.S.C. § 2808a.

• Progressive Design-Build Teams have full flexibility to structure their teams in a manner that best supports successful project performance. If a Progressive Design- Build Team identifies a small business partner, the partner’s role should be clearly described and may be incorporated into the resulting Agreement, as applicable.

What Happens After Award? (Partnership Begins)

What Happens After Award? (Partnership Begins) Post-Award: The Phase 1 Partnership

• Award of the Phase 1 OT is the beginning of our collaborative partnership, not the end of the acquisition.

• Upon award, the selected Design-Builder will immediately integrate with the USACE and Air Force team to begin the Phase 1 design and pre-construction phase. This is a transparent, hands-on process.

Key Activities in Phase 1:

• Jointly Develop the Design: You will participate in regular collaborative design reviews to advance the facility design from concept to a mature, buildable solution.

• Build the "Open Book" Cost Model: You will be required to transparently build the construction cost estimate, sharing actual subcontractor quotes and material pricing with the Government team.

• Manage Risk Together: You will co-manage a Joint Risk Register with USACE, working together to identify, price, and mitigate project risks before they become problems.

• Negotiate the Final Price: At the end of Phase 1, we will use the transparent Open Book model and our IGE to negotiate a fair and reasonable GMP for the Phase 2 construction work.

• Our goal in Phase 1 is to work as a single, unified team to de-risk the project and establish a credible, data-driven price for construction.

Summary Key Takeaways

Summary & Key Takeaways

• For a project like the 91st Cyber Operations Center, Industry Day is important because it helps ensure industry understands the mission, acquisition strategy, project constraints, schedule, and the Government’s expectations. It also gives industry early insight into the collaborative approach needed to successfully support this mission-critical project.

• The Request for Qualifications (RFQ) is expected to be posted from 13 to 27 October at SAM.gov. This RFQ will allow industry to review the Government’s proposed approach, including the scope, evaluation criteria, schedule, submission requirements, and overall acquisition process.

• RFQ to include draft documents, giving industry an opportunity to identify areas that may be unclear, overly restrictive, unrealistic, or inconsistent.

Contractor feedback helps the Government improve the final solicitation, reduce acquisition risk, and support stronger competition.

• The overall goal is to promote collaboration, teamwork, transparency, and shared understanding in order to meet the mission successfully.

• The goal is mission focused execution with partnering overload.

• ProjNet information is below for feedback, comments and questions.

• Website: https://www.projnet.org/projnet

• Bidder Inquiry Key: 4WYAJE-W25472

• Deadline: 20 OCT 26

• Registration instructions and helpful tip to use ProjNet are located on the site.

• The Government will respond to all feedback and questions through ProjNet Bidder

Inquiry which is a web-based system.

Feedback Input: Post Industry Day

Feedback & Input: Post Industry Day https://www.projnet.org/projnet

Anyone interested in doing business with the government can use this system to search opportunities.

Opportunities include pre-solicitation notices, solicitation notices, award notices, and sole source notices.

• Register your business in the federal government’s system for award management (SAM).

• Register in procurement integrated enterprise environment (PIEE) 2-step process:

1. How projects are advertised

2. How to submit proposal

Contracting opportunities

Contracting opportunities

Industry Collaboration

Industry Collaboration

Questions Thank You

Questions & Thank You