MDCIOC Industry Day Slides_Special Notice Version.pptx

PPTX presentation 43 MB Posted Jul 22, 2026

Attached to: Progressive Design-Build Services under Other Transaction Authority Project: Multi-Domain Cyber and Intel Operations Center, Joint Base San Antonio, Lackland AFB Texas
Solicitation number: W9126G26Z1BYL
Issued by: Department of the Army Corps of Engineers Engineering District Fort Worth

About this file

Written by GovTribe AI · Jul 22, 2026

Summary

This file is an Industry Day presentation for the U.S. Army Corps of Engineers (USACE) Fort Worth District announcing an upcoming solicitation for Progressive Design-Build (PDB) services under Other Transaction (OT) Authority for the Multi-Domain Cyber and Intel Operations Center at Lackland Air Force Base, Texas. The project involves designing and constructing a approximately 600,000 square-foot, reinforced concrete operations facility with integrated visitor control center and cyber operations data center to serve as the command center for 16th Air Force cyber and intelligence operations. The facility must comply with Intelligence Community Directive 705 security standards, Department of Defense Unified Facilities Criteria, and Lackland AFB installation standards. The $986 million project budget establishes realistic affordability parameters and encourages collaborative, cost-conscious solutions from industry teams.

The procurement approach utilizes a two-phase OT model: Phase 1 (Design and Preconstruction Services) funded with MILCON Design funds and Phase 2 (Final Design and Construction) funded with MILCON Construction funds. Selection will occur through a qualifications-based process comprising a 20-page white paper submission, down-selection to up to three teams, and pitch presentations evaluated on team composition, relevant experience, key personnel qualifications, PDB/OTA execution approach, project understanding and risk management, and demonstrated $1 billion phased bonding capacity. The solicitation is expected to post on SAM.gov from August 26 to September 25, with competitive selection anticipated within 120 days. Phase 1 emphasizes open-book cost estimating, iterative design development, constructability reviews, and joint risk management, with an off-ramp allowing the Government to retain the design and procure construction separately if Phase 2 pricing cannot be negotiated. The presentation identifies ProjNet as the feedback platform (Bidder Inquiry Key: 4RZD4M-98W66K, deadline July 28, 2026) and notes that construction laws including Davis-Bacon labor compliance, OSHA safety requirements, environmental regulations, and cybersecurity standards still apply to OTA awards.

View the file

Other files

File	Type	Posted
Special Notice QA from Industry Day.pdf	PDF	Jul 24, 2026
ProjNet Bidder Inquiry Information.pptx	PPTX presentation	Jul 22, 2026
Industry Day Sign in Sheet.xlsx	XLSX spreadsheet	Jul 22, 2026
Parking and Venue Location for Industry Day MDCIOC.pptx	PPTX presentation	Jul 15, 2026
Base Access Request Form JBSA_Industry Day.pdf	PDF	Jun 15, 2026

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U.S. Army Corps of Engineers:

Industry day Multi-Domain Cyber & Intel Operations Center Lackland Air Force Base, TX Progressive Design Build under Other Transaction

Welcome & Introductions Progressive Design Build (PDB) and Other Transaction Authority (OTA) process Why provide the $986M budget?

Open Book Cost Estimating Project Overview, Scope of Work & Technical Requirements Procurement Approach Solicitation Attachments The Acquisition Pathway Small Business Partnership Goals Government Resources for Bidders Summary & Key Takeaways Feedback & Input Contracting Opportunities

Agenda

USACE Video on PDB+OTA https://www.youtube.com/watch?v=Knt3uKe_HiU

Introductions USACE – Fort Worth District (SWF) MDCIOC Project Delivery Team (PDT)

Mr. Daryl Flaggs – Project Manager Mr. Matthew Dickson – Agreements Officer (AO) Mr. Dhurgham Kadhim– Engineering Technical Lead Mr. John Deville– SWF Cost/Price Analyst Mr. Kyle Loudermilk – Administrative Agreements Officer (AAO) TBD – Agreements Officer Representative (AOR) Mr. Rodney Alexander – Agreements Specialist Mr. Ted Turney – SWF Chief of Contracting

Thank you for joining us for a significant milestone: This project is one of the U.S. Army Corps of Engineers' first entry into the Progressive Design-Build (PDB) arena.

New territory for us, we are approaching today as a true collaborative effort with you to define the right path forward.

Our intent is clear – we want to execute PDB as closely as possible to the way you successfully operate in the private sector.

Leveraging the Other Transaction (OT) Authority process, which we believe frees us from traditional FAR constraints and provides the flexibility needed to mirror industry best practices.

We need you as a collaborative partner. Request candid feedback when we issue our draft Program Solicitation – tell us what works, and more importantly what we can improve.

Your insights today will do more than shape this single acquisition; they will help us establish a strong, commercially sound foundation for the USACE enterprise PDB process going forward.

OT STATUTORY AUTHORITY:

10 U.S.C. § 2808a, Facility Construction or Repair: Transactions Other Than Contracts and Grants

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

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

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

KICKOFF & ALIGNMENT

SCHEMATIC DESIGN

BUDGET LOCK

DESIGN DEVELOPMENT

DECISION GATEWAY TO PHASE 2

PRECONSTRUCTION READINESS

Outcome: Government Authorizes Phase 2 Construction when Cost, Scope, Schedule and Risk are Acceptable 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 GE CWE / Open Book Estimate / IGE Switch to Fixed Price

1. Project Requirements Mission Need Performance Objectives Industry Outreach / Market Intelligence SCO OTA Approval

AUTHORIZE PHASE 2 CONSTRUCTION

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 Execute Construction in Work Packages Foundations / Structure Building / Systems Interior / Exterior Site Utilities Continuous Quality & Safety Reviews 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

Receive MILCON Construction Funding Issue Modification to Agreement Obligate Funding Decision Milestones Green Light Long Lead Item Procurement

Construction Continues

2. Request for Qualifications

(RFQ)

3. Statement of Qualifications (SOQs) Industry Submits SOQs Government Evaluation

4. Down-Select Government Selects Best Qualified Offers Invite Firms to Pitch Presentations

5. 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?

PRE-AGREEMENT: PLANNING, SOLICITATION, & AWARD

OFF RAMP

DECISION POINT

OFF RAMP

DECISION POINT

Finalize Requirements Package Industry Day / Notice Publish Solicitation Offeror Presentations / Meetings / Interviews Q&A Site Visit, if applicable

PROGRESSIVE DESIGN-BUILD (PDB) WITH OT

End-to-End Process for MILCON Projects

Right Authority.

Right Collaboration.

Right Outcome.

30 JUN 2026

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.

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.

Why Provide the $986M Budget to Industry?

1. Establishes Realistic Design Baseline Aligns all teams to a defined affordability limit Prevents overdesign and inexecutable concepts Focuses solutions of what can actually be delivered within budget

2. Improves Competition & Industry Engagement Attracts serious, capable teams aligned to the project size Encourages innovative, cost-conscious solutions

1. Enables collaborative cost refinement PDB relies on open book estimating 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 Leads to:

Inflated contingencies Conservative / inflated proposals Budget clarity drives more accurate pricing

Open Book Cost Estimating

Open Book Cost Estimating (cont’d)

3. Strengthens Government–Industry Partnership Signals transparency and trust Reinforces collaborative intent of:

PDB

OT Authority under 10 U.S.C. § 2808a Aligns both parties toward a shared outcome

Project Title: Multi-Domain Cyber and Intel Operations Center Purpose: Construct a Multi-Domain Cyber and Intel Operations Center for the 16th Air Force.

Location: Security Hill Campus, Lackland AFB, TX

Project Overview

Scope of Work & Technical Requirements

Facility Size:

Primary Function:

Features:

Open concept with a two-story operations floor with high ceilings.

Integrated Visitor Control Center, physically connected to the facility.

Cyber Operations Data Center with AI server clusters & machine learning platforms.

Security:

Construction:

Approximately 600,000 sq ft, reinforced concrete structure w/ 12,500 sq ft, Central Utility Plant

Execute the mission as the nerve center for the Air Force Cyber, integrating cyber, intelligence, surveillance, reconnaissance (ISR), electronic warfare, and information operations.

The facility must be designed and constructed to meet Intelligence Community Directive (ICD) 705 standards for a Secure Facility.

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

Procurement Approach Program Solicitation: to include the Request for Qualifications/White Papers, is expected to be posted from 26 August to 25 September 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

Why This Approach?

Acquisition Strategy Rationale: PDB via OT

PDB advances design before final pricing, reducing contingency and producing a more realistic cost.

The Design-Build Team is selected on qualifications and collaborates with the Government to develop the design and establish the price.

OT provides speed and flexibility to tailor the acquisition process and prioritize technical excellence.

Early contractor involvement is critical to manage complex cyber, intelligence, security, communications, and facility requirements while protecting schedule and budget.

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 one-hundred twenty (120) days of solicitation release. Performers who are interested in proposing but unable to meet the approximate timeline may be removed from consideration for award.

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., draft OT award documents, articles are OT specific agreement terms and conditions) 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 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, $1B Phased Bonding Capacity We may invite up to 3 Team(s) for Pitch Presentations

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 Experience & Past Performance Similar mission-critical, secure, federal/DoD projects.

Cyber, intelligence, communications facility experience.

Demonstrated cost, schedule, and quality performance.

Factor 3 — Key Personnel Qualifications PM, design manager, construction manager, estimator, and scheduler.

Experience with secure facilities & military construction.

Availability for Phase 1 and Phase 2.

Factor 4 — PDB/OTA Execution Approach Phase 1 design and preconstruction approach.

Open-book estimating and constructability reviews.

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

Factor 5 — Project Understanding & Risk Mgmt.

Understanding of MDCIOC mission & requirements.

Identify key technical, cost, schedule, and security risks.

Plan to assign, mitigate, and track risks.

Factor 6 — $1B Phased Bonding Capacity Demonstrated $1B bonding capacity.

Single-project, aggregate, and remaining capacity.

Go/no-go financial capability requirement.

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)

The OT will be awarded in two parts: Phase 1 and Phase 2 (Est. FY28):

Phase 1 Award — Design and Pre-Construction Services:

The selected Design-Build Team will be awarded an OT for Phase 1. No construction work will be performed during the design and pre-construction phase unless separately authorized by the Government. Phase 1 will be funded with appropriated funds available for the authorized purpose.

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:

Phase 2 may be awarded as a modification to the OT upon successful negotiation of a fair and reasonable GMP or FFP at a future design milestone. Phase 2 is anticipated to be funded with Military Construction funds, subject to availability of funds and required approvals.

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

OT Flexibilities Not governed by FAR Part 15 source selection procedures 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 requirements Fiscal law / Anti-Deficiency Act compliance Security, export control, DPAS priority rating

Construction Laws Applicable to OTAs

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) 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 "Over-the-Shoulder" design reviews to advance the facility design from concept to a mature, buildable solution (~65% completion).

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 Firm-Fixed-Price 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.

Government Resources for Progressive Design Build Entities The U.S. Government provides no-cost resources to assist businesses:

APEX Accelerators (https://www.apexaccelerators.us/#/about-us ) Free expert coaching on government contracting, from readiness to proposal writing and performance Project Spectrum (https://www.projectspectrum.io/#/ ) A DoW-funded initiative to help businesses improve cybersecurity and meet CMMC requirements through free tools, training, and support

Summary & Key Takeaways For a complex project like MDCIOC, 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 26 August to 25 September 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.

ProjNet information is below for feedback, comments and questions.

Website: https://www.projnet.org/projnet Bidder Inquiry Key: 4RZD4M-98W66K Deadline: 28 JUL 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

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:

How projects are advertised How to submit proposal

Contracting opportunities

Thank You & Questions image19.png image2.png image7.png image24.png image25.png image26.png image27.png image35.png image36.svg