Market Survey Questionaire FY28 Frequency Converter Plant_YND.docx

FY28 MILCON Frequency Converter Plant, Yokohama North Dock, Japan Market Survey Questionnaire

EXECUTIVE SUMMARY:

Purpose: The U.S. Army Corps of Engineers (USACE) is exploring the use of alternative acquisition strategies like Progressive Design Build and Integrated Design and Construction for the upcoming electrical substation project at Yokohama North Dock. Because these contracting method differ from traditional U.S. Government Fixed-Price Design-Build contracts, this summary is provided to explain the different framework, how risks are shared, and how the contractor and Government will collaborate as well as to determine local industry interest in these new methods.

What is Progressive Design-Build (PDB)?

PDB is a highly collaborative project delivery method. Unlike traditional Design-Build where contractors must submit a final construction proposal based on an incomplete preliminary design, PDB selects a contractor based primarily on their qualifications, past performance, and expertise, rather than a final price.

What is Integrated Design & Construction (IDAC)?

The Integrated Design and Construction (IDAC) acquisition strategy represents a highly collaborative, two-phase procurement method designed to mitigate risks, compress timelines, and control costs on complex military and civil works construction projects. The intent is to competitively select the construction contractor early in the design cycle. This allows the construction contractor to provide real-time constructability reviews, cost estimations, and market supply-chain analysis while the Designer of Record (DOR) finalizes the design.

For both methods, once the contractor is selected, the U.S. Government and the Contractor work together as a team to collaboratively/progressively develop the design, schedule, and cost.

Acquisition Outline: The Two-Phase Contract Structure for PDB and IDAC

PROGRESSIVE DESIGN BUILD (PDB)

INTEGRATED DESING & CONSTRUCTION (IDAC)

Key Concepts for Japanese Contractors Progressive Design Build

· Open-Book Pricing (Phase 1): To reach a fair and reasonable construction price for Phase 2, the Contractor must use "open-book" estimating during Phase 1. This means transparently sharing subcontractor quotes, material costs, and overhead calculations with the Government as the design develops.

· Reduced Bidding Risk: Because the Contractor is selected based on qualifications rather than a firm bid price, the Contractor does not have to assume the high financial risk of estimating construction costs on incomplete conceptual drawings.

· Fast-Tracking (Early Work Packages): PDB allows the Government to award specific construction tasks (such as site clearing, foundation work, or ordering long-lead electrical equipment) before the 100% final design is finished, accelerating the overall project schedule.

· The "Off-Ramp" Provision: If the Government and the Contractor cannot agree on a fair construction price at the end of Phase 1, the Government may exercise an "off-ramp." The Contractor will be fully paid for their Phase 1 design services, the contract will be closed, and the Government will bid the remaining construction work to the open market.

Integrated Design and Construction

· Japanese firms must transition from bidding on 100% finished plans to acting as early-stage pre-construction consultants at the 35% design mark.

· Open-Book Pricing (Phase 1): To reach a fair and reasonable construction price for Phase 2, the Contractor must use "open-book" estimating during Phase 1. This means transparently sharing subcontractor quotes, material costs, and overhead calculations with the Government as the design develops.

· The Tri-Party Boundary: In contrast to Japanese Design-Build (Sekkei-Seko), the contractor operates alongside a separately contracted Architect-Engineer (A-E) firm. The contractor provides constructability advice but does not take on design liability.

Conclusion: USACE recognizes that complex electrical infrastructure projects require specialized expertise and careful supply chain management. By utilizing PDB, we aim to partner with the contractor early, reduce risks for both parties, and ensure the successful delivery of critical infrastructure at Yokohama North Dock.

SURVEY QUESTION AS FOLLOWS:

Phase 1 Questions:

1. Has your firm previously executed a project using a "Integrated Design and Construction “, "Early Contractor Involvement (ECI)," or a similar highly collaborative, two-phase contract structure (where the builder is selected on qualifications before the design is complete)? If yes, please provide a brief example.

2. Please describe your firm’s experience designing, engineering, and constructing high-voltage electrical substations or similar heavy electrical infrastructure within the last 5–7 years.

3. Has your firm previously executed projects for the U.S. Army Corps of Engineers (USACE), U.S. Forces Japan (USFJ), or the Ministry of Defense (MOD) requiring compliance with U.S. design standards (e.g., UFCs, NEC)?

4. A key component of PDB is "open-book" pricing during Phase 1 to jointly develop the construction cost. Is your firm willing and able to share detailed cost data, subcontractor quotes, and overhead/ profit calculations with the U.S. Government before a final price is agreed upon?

5. How would your firm integrate U.S. Government stakeholders into your typical design reviews and decision-making processes?

6. Describe a project where your firm successfully collaborated with a separately-contracted Designer of Record (DOR) representing the Government. How did you resolve design/constructability disagreements?

Phase 2 Questions:

1. During the initial RFP phase, what level of design maturity (e.g., 15%, 35%) does your firm require to provide a realistic target construction price or pricing ceiling for an electrical substation?

2. Is your firm comfortable with an "open-book" estimating process during Phase 1 to reconcile costs with the Independent Government Estimate (IGE)?

3. If a final price cannot be agreed upon at the end of Phase 1, the Government will continue to 100% design and will bid competitively as a traditional Design Bid Build. Does this "off-ramp" provision present a barrier to your firm participating in this solicitation? If so, what mitigations would you suggest?

4. How can the Government best structure the Phase 1 pre-construction phase to allow for the early acquisition or reservation of critical long-lead items (e.g., microgrids, generators, specialized materials)?

General Project Questions:

1. How early in the Phase 1 design process would you need to engage specialized electrical subcontractors to guarantee pricing and schedule?

2. Given current global supply chain constraints, what is your estimated lead time for procuring major electrical components (e.g., transformers, switchgear) required for a substation in the Yokohama area?

3. Do you foresee any labor shortages or logistical challenges specific to executing a heavy electrical project at Yokohama North Dock over the next 24-36 months?

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