Attachment 01 - Bldg 493 Standby Generators - 18 Oct 26.pdf

Sources Sought & Other Transaction Authority (OTA) Market Research

DEPARTMENT OF THE ARMY

FORT WORTH DISTRICT, U.S. ARMY CORPS OF ENGINEERS

819 TAYLOR STREET

FORT WORTH, TEXAS 76102-0300

CESWF-CT 18 October 2026

MEMORANDUM FOR ALL PROSPECTIVE OFFERORS AND INTERESTED

INDUSTRY PARTNERS

SUBJECT: Sources Sought (RFI) – Red River Army Depot Standby Generator

1. DISCLAIMER. THIS IS A REQUEST FOR INFORMATION (RFI) / SOURCES

SOUGHT NOTICE ONLY. This notice is issued solely for market research, information, and planning purposes. It does not constitute a Request for Proposals (RFP), a Request for Qualifications (RFQ), or a commitment by the Government to write, issue, or award an agreement or contract. The Government will not pay for any information or administrative costs incurred in response to this notice. All response costs will be borne solely by the interested party.

2. PURPOSE. The U.S. Army Corps of Engineers (USACE), Fort Worth District, is conducting active public market intelligence to gauge industry interest, capacity, and capability from commercial construction firms, design-builders, and Non-Traditional Defense Contractors (NDCs). The intent is to gather critical feedback regarding advanced commercial construction methodologies, project delivery risks, and acquisition preferences to support our upcoming project delivery selection.

3. ACQUISITION STRATEGY & NON-FAR MODEL.

a. Statutory Authority: This project will potentially be executed as a Progressive Design-Build (PDB) project utilizing Other Transaction Authority (OTA) pursuant to 10 U.S.C. § 2808a.

b. Non-FAR Environment: Prospective partners are advised that the Federal Acquisition Regulation (FAR) does NOT apply to this procurement. The negotiated, bilateral Other Transaction Agreement will serve as the sole governing contract.

Standard FAR clauses are inapplicable, though federal statutory constraints (such as federal fiscal law, criminal statutes, and general civil laws) remain fully applicable.

c. Agreement Mechanics:

(1) PBD Procurement Process: Phase 1, Design & Pre-Construction Services, a design-builder will be selected through a qualifications-based selection (QBS) process. The government will then negotiate a fee for Phase 1 services. There is no requirement to submit price proposals or design concepts during the initial selection.

Phase 2, Final Design & Construction, is executed via a bilateral modification to the OT Agreement upon successful negotiation of a Guaranteed Maximum Price (GMP) at approximately 65% design maturity. The Agreement contains an "off-ramp" clause allowing the Government to retain the design and procure construction separately if GMP negotiations fail.

4. PROJECT OVERVIEW & SCOPE.

a. Title: Red River Army Depot Standby Generator

b. Location: New Boston, Texas

c. Scope: This project will install a 1300 KW Generator and two 500kw generators, a 3000 KVA step-up transformer, and 15 kV switchgear to provide backup power to Building 493. The equipment will provide a Distributed Infrastructure (DI) system within RRAD. The proposed system will provide 100% standby power and will be designed for closed transition operation with AEP/SWEPCO for Standby Response. Provide complete engineering, procurement, and construction of back-up generation facilities for RRAD buildings 493 (Rubber Operations), M495 (fluidized bed), and the compressor service supporting building 493. Back-up generation is intended to counter outages which cause significant downtime and cost impacts to the operation. Facilities will be designed to a minimum life of 40 years in accordance with DoD's Unified Facilities Criteria (UFC 1-200-02) including energy efficiencies, building envelope and integrated building systems performance.

d. Target Price Range (TPR): The Government has established The Government's

Target Price for construction is between $4,800,000 and $5,127,000 (the strict

CCL) with a programmed PA of $5,700,000.

e. Projected Award Date: The Government targets the formal award of the Agreement Phase 1 (Design and Preconstruction Services) on or about APRIL 2027.

f. Period of Performance (POP): The projected construction timeline is approximately 540 calendar days following the execution of the Phase 2 Construction modification.

g. Product Service Code (PSC): 6115 (Generators and Generator Sets)

h. NAICS Code: 238210 (Electrical Contractor and Other Wiring Installation).

(1) INNOVATIVE METHODOLOGIES & FEEDBACK AREAS. The Government is seeking commercial industry feedback regarding the feasibility and market capacity for the following innovative methods:

i. Modular and Off-Site Prefabrication: Fabricating large sections of the facility or complex mechanical, electrical, and plumbing (MEP) systems in factory-controlled environments to compress the construction schedule.

ii. 3D Printing: Utilizing large-scale 3D printing for secondary building components, non-load-bearing walls, or perimeter security fencing.

iii. Advanced Materials: Incorporating self-healing concrete to reduce lifecycle maintenance and maximize structural integrity, or utilizing high-performance insulation (e.g., aerogels or vacuum-insulated panels) to meet high-performance building standards.

APPENDIX B

1. Project Overview & Mission Goal

• Project Name/Number: Red River Army Depot Standby Generator/520250

• Location: New Boston, Texas

• Mission Statement: The US Army Corps of Engineers, Fort Worth District, has a requirement to design and construct from the Red River Army Depot to provide a Design-Bid-Build, Firm Fixed-Price contract.

• 2. Functional Requirements (The "What")

• Facility Type: Design and Construct 3 Backup Generators to supply a Distributed Infrastructure (DI) system within RRAD. The proposed system will provide 100% standby power.

• Estimated Scale: This project will install a 1300 KW Generator and two 500kw generators, a 3000 KVA step-up transformer, and 15 kV switchgear to provide backup power.

• Primary Functional Spaces: Provide a Distributed Infrastructure (DI) system within RRAD. The proposed system will provide 100% standby power and will be designed for closed transition operation with AEP/SWEPCO for Standby Response.

• Space A: Provide complete engineering, procurement, and construction of back-up generation facilities for RRAD buildings 493 (Rubber Operations, and the compressor service supporting building 493).

• Space B: M495 (fluidized bed)

• Key Performance Targets: All work will meet DoD standards for security, anti-terrorism, and cybersecurity.

3. Known Project Constraints

• Site Conditions: Contours of the landscape may require movement of drainage ditches create space to house fuel tanks and equipment pads.

• Security/Access: Project is located inside the cantonment area; all personnel must undergo background checks for site access.

• Utilities: This is an existing facility with pre-existing utilities provided that are being upgraded by an existing contract. This project will need to be compatible with the upgraded utilities.

4. The Construction Cost Limitation (CCL)

• The Fixed Budget: The Target Price Estimate is between $4,800,000 and $5,127,000 (CCL) and a PA of $5,700,000.

• What it Includes: This amount covers all design services and construction. It excludes Government-furnished equipment (GFE).

• The DBB Challenge: USACE is seeking the design-build team that can provide the highest level of technical merit, quality, and mission-capability.

5. Proposed Project Schedule

• Period of Performance: 540 Calendar Days from Notice to Proceed.

• Critical Milestones:

• Solicitation Release – DEC 2026

• Proposals Received – JAN-FEB 2026/2027

• Proposal Revisions Submitted – FEB 2027

• Contact Award – MAR-APRIL 2027

6. OTA vs FAR Based Acquisition

• The purpose of this market research is to assist the Government in determining if OTA or a FAR-based acquisition is appropriate. The next page provides information for two OTA procurement methods and one FAR based procurement method (i.e., Highest Technically Rated).

• Stipends: A stipend is not authorized.

• Incentives: Not mentioned in the source selection plan.

Progressive Design-Build – Progressive Design-Build is a collaborative project delivery method where the owner selects a design-builder based on their qualifications and experience, rather than on a detailed bid. Success hinges on proactive, early integration of construction expertise, a commitment to transparent "open-book" estimating, and a culture of collaborative decision-making.

The defining characteristics of PDB:

• One integrated team: The Government selects a design-builder—designer and constructor working as one team—at the beginning of project development, before a meaningful amount of design is complete.

• Qualifications led selection: Selection focuses heavily, and often exclusively in the initial stage, on relevant experience, past performance, technical capability, proposed personnel, and ability to collaborate—not a low construction bid.

• Construction not priced at award: The initial agreement award Phase 1 services. A price for construction, such as a guaranteed maximum price (GMP) is set only once the design, scope, schedule, and risks have been sufficiently developed.

Market Intelligence Report: Industry Day/First Look Questionnaire

General Feasibility & Model Selection (PDB)

1. Agreement Preference: The Government is exploring the use of an Other Transaction (OT) Agreement for this construction project to potentially increase collaboration, speed, and innovation. For this specific project, do you believe an OT agreement is the most appropriate vehicle, or would your firm prefer a traditional FAR-based contract? Please explain your reasoning.

Your Answer:

[Please type your detailed reasoning here]

2. OT Risk & Barriers: If the Government chooses to proceed with an OT framework rather than a traditional FAR Part 15 procurement, does your firm foresee any barriers, risks, or hesitations in proposing on or executing this project?

[ ] No [ ] Yes

[If yes, please explain the barriers, risks, or hesitations here]

3. Model Viability: Based on the parameters provided in the Project Information Packet (Appendix B), does your firm believe it is feasible to propose a reliable, fixed price (including incentives) for this project after a 2-3 month collaborative design refinement period?

☐ Yes, a reliable price is likely achievable.

☐ No, there is too much risk/uncertainty to provide a reliable price this early.

4. Risk Justification: Please explain your reasoning for the answer above. What are the top 1-3 factors (e.g., project complexity, site conditions, clarity of functional requirements) that influenced your choice?

Factor 1 Type Factor here [Please type your Factor 1 justification here]

Factor 2 Type Factor here [Please type your Factor 2 justification here]

Factor 3 Type Factor here [Please type your Factor 3 justification here]

5. PDB Threshold: If you answered "No" to Question 1, at what level of design maturity (e.g., 35%, 60%, 90%) would your firm feel confident in providing a reliable, fixed price or Guaranteed Maximum Price (GMP) through a Progressive Design-Build process?

☐ 35%

☐ 60%

☐ 90%

[Please type your detailed reasoning here]

I. Budget & Financial Realism

1. Budget Alignment: Based on your firm's recent experience with similar projects, does the proposed Construction Cost Limitation (CCL) $5.1M for the approximate number and size of generators and site work required appear realistic in the current local market?

[Please provide your assessment here]

2. Major Cost Drivers: From a high-level view of our functional requirements, do you see any specific mission needs (e.g., specialized security, unique structural loads) that you anticipate will be the primary drivers of cost?

[Identify potential primary cost drivers here]

3. Market Precedents: Are there specific benchmarks or recent industry projects we should look at to ensure our expectations for quality and performance align with this budget?

[Identify potential projects and locations here]

II. Flexibility & Innovation (The "How")

1. Prescriptive "Showstoppers": Are there any requirements in our functional description that appear overly prescriptive or "locked-in" that might prevent you from offering a more innovative or cost-effective solution to meet the mission?

[Identify any restrictive requirements here]

2. Innovation Opportunities: In this building type, where do you typically see the most opportunity for an integrated design-build team to provide "more for the money" (e.g., modular systems, envelope efficiency, MEP coordination)?

[List innovation opportunities here]

III. Market & Supply Chain (External Risks)

1. Long-Lead Warning: Even without a full design, are there specific systems common to this facility type (e.g., generators, custom AHUs, specialized lab equipment) that are currently experiencing lead times that would threaten the proposed project schedule?

[List any long-lead items of concern here]

2. Local Labor Constraints: Are there specific trades in the project area that are currently over-extended or in short supply that could impact the project's risk profile?

[List any trades currently over extended or in short supply]

IV. Defining Value (The Betterment Search)

1. The Value Gap: If your team discovers or recommends any in design efficiencies during the proprietary meetings, which "betterments/enhancements" (e.g., enhanced durability, lower life-cycle costs, better technology) should we prioritize in our evaluation criteria as the most valuable for this facility type? (List 3-5 options for industry to rank).

Government “betterments/enhancements” Industry’s Ranking Estimated Dollar Amount

Enhanced Durability [1-5] $

Lower Lift-Cycle Cost [1-5] $

Better Technology [1-5] $

2. Sustainability Targets: Is the proposed level of sustainability (e.g., Specific energy goals, etc.) a standard "reach" for industry, or will it require significant premium pricing in this market?

[Provide your assessment on sustainability targets here]

V. Proposal Effort & Contract Incentives

1. Stipend Necessity: Given the requirement to participate in five proprietary meetings and develop a conceptual design for Phase 2 evaluation, is a stipend necessary for your firm to justify the pursuit costs of this procurement? Yes or no, and why?

☐ Yes

☐ No

[Your answer here]

2. Stipend Alignment: If a stipend is offered, what amount (or percentage of the CCL) does the market currently consider sufficient to offset the level of effort required for a Phase 2 proposal of this complexity?

[Indicate the sufficient stipend amount or percentage here]

3. Effective Incentives: In a fixed-budget environment, what types of post-award contract incentives (e.g., award fee for exceptional quality, schedule acceleration, shared savings) are most effective at motivating your team to exceed minimum performance requirements?

[Describe the most effective incentives here]

VI. Additional Inquiries or Comments We have established a ProjNet, http://www.projnet.org/projnet, for additional inquires and questions. To self-register go to web page, click Quick Add link, select agency USACE, enter Key for this solicitation listed below, and your e-mail address, click Continue. Fill in all required information and click Add User. Verify that information on next screen is correct and click continue. From this page you may view all bidder inquiries or add inquiry. Bidders will receive an acknowledgement of their question via email, followed by an answer to their question after it has been processed by our technical team.

Project Number: 520250

Key Number: 6T6ATA-AP4FYX

Technical Question and Cutoff for This Sources Sought Notice: Please submit all questions and concerns regarding this Sources Sought Notice through Projnet ONLY.

The absolute cutoff for all inquiries is Monday, 09 November 2026, NLT 10:00 A.M.

Central Daylight Time (CDT).

Capability Statement Response and Complete Package Submission Deadline:

Friday, November 13, 2026, NLT 4:00 P.M. CDT. Please email response to Ms. Octavia Gregory, ensuring you carbon copy (CC) Ms. Shayla Lucas on the transmission.

FUTURE INDUSTRY DAY: An Industry Day is being scheduled; however, a specific date and time have not yet been established. This scheduling information, along with registration details and access links, will be published in a subsequent Special Notice on SAM.gov.

We ask all interested parties to closely monitor SAM.gov for these upcoming details.

During the session, the USACE Project Delivery Team (PDT) and Red Rive Army Depot representatives will discuss the collaborative mechanics of the potential PDB/OTA model.

http://www.projnet.org/projnet