Attachment F - Reverse Industry Day -Full Slide Deck.pdf

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Reverse Industry Day – Capabilities and Experience with Alternate Design and Delivery Methodologies (ADDM) for USACE Europe District
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This document is a presentation file containing multiple briefings on innovative construction delivery methods for federal military construction projects, primarily focused on the U.S. Army Corps of Engineers (USACE) Europe District operations and specific case studies.

USACE Europe District Overview and Delivery Methods:

The Europe District manages approximately $14.8 billion in military construction programming across more than 1,200 active projects spanning ~50 countries in Europe and Africa, with a FY25 budget of $710 million in construction placement and 1,350 contract awards valued at approximately $511 million. The District employs ~600 personnel and operates 34 field offices across 12 countries, headquartered at U.S. Army Garrison Wiesbaden, Germany. The District's mission is to deliver construction, engineering, and real estate services to support readiness and deter aggression in U.S. European Command and U.S. Africa Command areas of responsibility. The presentation outlines a delivery method toolbox including Design-Bid-Build (DBB), Design-Build (DB), Integrated Design & Construction (IDaC), Construction Manager at Risk (CM@Risk), Design-Build to Budget (DBtB), Progressive Design-Build (PDB), and Accelerated Design-Build (ADB). The District is pioneering use of Other Transaction Authority (OTA) under 10 U.S.C. § 2808a for facility construction and repair, which is currently authorized only for Department of War-funded projects and allows flexibility outside Federal Acquisition Regulations (FAR) constraints.

OTA and PDB with OTA Framework:

OTA represents a legal authority to enter into transactions outside standard contracts, grants, or cooperative agreements, enabling adoption of commercial industry standards and best practices. Unlike FAR-based contracting, OTA is not subject to Federal Acquisition Regulations, which can attract nontraditional partners and encourage flexible, collaborative arrangements. Progressive Design-Build (PDB) with OTA is characterized by qualifications-based selection of a design-build team, progressive development of design and scope with the contractor retained early, and pricing commitments made as uncertainty is reduced. Key takeaways for OTA implementation include: the agreement is supreme with no default FAR safety net; bilateral modifications are the only solution for unforeseen issues; pre-award involvement is critical; and variety of statutes still apply (Miller Act, Davis-Bacon Act, cybersecurity requirements). Phase 1 involves design and preconstruction services funded by MILCON Design Appropriations, with open book estimating and decision gateways. Phase 2 transitions to final design and construction using MILCON Construction Funds and a fixed price arrangement. The framework includes two off-ramp points where the Government may end the agreement and procure construction separately.

Fort Liberty and San Jose Airport Case Studies:

The Fort Liberty Smoke Hill Barracks Renovation project used Modified Early Contractor Involvement (ECI) through a USACE Omaha Rapid Disaster Infrastructure MATOC. The project addressed urgent mold remediation supporting ~1,200 soldiers across three barracks while managing unknown scope, design-in-motion conditions, and long-lead procurement pressures. The team achieved a $2 million budget reduction by the 35 percent design point, delivered three barracks (H4350, H4822, H5122) totaling 79,200 square feet to beneficial occupancy in 14 months (versus 30-month MILCON benchmark), achieved zero recordable incidents across 599,759 work hours, and attained LEED Silver certification. The San Jose Airport Modernization Program applied PDB with emphasis on early contractor input to manage active passenger operations, multiple stakeholder alignment, complex phasing, and schedule compression. The program achieved 3 months schedule acceleration on Terminal A phasing, $60 million under budget through continuous cost updates, and approximately $20 million in savings by developing a connector strategy that avoided a temporary terminal. Both case studies emphasize early collaboration, empowered governance structures, continuous cost validation, and risk retirement before price commitment as critical success factors.

SOCEUR Headquarters (Future C2 Facility) Project:

This is a proposed U.S. Special Operations Command Europe (SOCEUR) Headquarters facility at Patch Barracks, USAG Stuttgart, Germany, featuring a 113,620-square-foot, three-story Command and Control Facility with approximately 36,000 square feet of Level 6 secure space compliant with Intelligence Community Directive (ICD) 705 standards. The project requires site clearing of 3.0 acres, full demolition of the existing Patch Commissary (~55,000 square feet), and hazardous contaminants abatement including asbestos, mineral wool insulation, polycyclic aromatic hydrocarbons, and radioactive materials in compliance with German Technical Rules (TRGS 519, 521, 524). Facility specifications include full radio frequency shielding on all six sides of secure areas, TEMPEST risk assessment and protection, secure access controls, and a dedicated NATO Secret area for foreign partner network separation. Supporting infrastructure includes a 4-level concrete deck parking garage with 450 vehicle spaces, district heating connection, mechanical ventilation compliant with ASHRAE 62.1 and German standards, a 230-cubic-meter sprinkler water tank in the garage sub-level, a 1,200-kilowatt standby diesel generator, and redundant electrical feeds and communications. The project falls under MILCON OTA Authority (10 U.S.C. § 2808a) and Accelerated Design Funding (10 U.S.C. § 3241(f)(1)), allowing design award using MILCON Design Appropriations before construction funding authorization in FY29. The USACE Center of Standardization is Savannah District, with Centers of Expertise including the Protective Design Center (Omaha) and Control System Cybersecurity and Electronic Security Systems (Huntsville). The presentation notes that PDB with OTA is uniquely attractive for this project because it operates outside FAR constraints, enabling engagement of leading-edge commercial firms specializing in Level 6 secure facility construction who typically avoid traditional federal contracting.

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EUROPE

DISTRICT:

Building Strong Together

USACE Europe District Profile

Workforce:

• ~600 Employees

• 12 Soldiers

• ~480 DA Civilians

• ~100 local nation/host nation employees

Locations:

• 34 field offices in 12 countries

• Headquarters: US Army Garrison Wiesbaden, Germany

• Projects in ~50 countries across Europe and Africa

• >$14.8B program across more than 1,200 active projects

• FY25: $710M in construction placement; 1,350 contract awards valued at approximately $511M.

• FY26 (projected): $810M in construction placement

Key Stakeholders including:

• US European Command

• US Africa Command

• Installation Management Command - Europe

• NATO

• Defense Healthy Agency

• Dept of War Education Activity

• State Department

EUROPE DISTRICT AT-A-GLANCE

Mission The Europe District delivers construction, engineering, and real estate services in the United States European Command and the United States Africa Command areas of responsibility to build readiness, deter aggression, and increase lethality through modern military infrastructure.

Vision The premier defense construction agent and technical expert in Europe and Africa capable of solving complex engineering challenges alongside our Allies and Partners

Innovative Methods For Construction Overview

Katya Oxley Chief of Contracting Office Europe District

Delivery Method Toolbox

• Design-Bid-Build (DBB)

• Design-Build (DB)

• Integrated Design & Construction (IDaC)

• Construction Manager at Risk (CM@Risk)

• Design-Build to Budget (DBtB)

• Progressive Design-Build (PDB)

• Accelerated Design-Build (ADB)

• Plus Others… o What design level is my project at?

o Is the industry supportive of this approach?

o Does the method align with project needs & risks?

o Is the team trained and able to administer?

Other Transaction Authority (OTA)

Overview

WHAT IS OTHER TRANSACTION AUTHORITY (OTA)?

• A legal authority to enter into transactions other than standard contracts, grants, or cooperative agreements. It provides the flexibility to adopt commercial industry standards and best practices.

• OTs are not subject to the Federal Acquisition Regulations (FAR). This can attract non-traditional partners and encourages flexible, collaborative, and commercial arrangements.

• Primarily were used for research and prototyping, but new authority has expanded its use for construction.

o 10 U.S.C. § 2808a grants the authority to use OTA for facility construction and repair.

• Currently only authorized for Department of War (DoW) funded projects.

• OTs are awarded by Agreements Officers (AOs).

o We will have Administrative Agreements Officers (AAOs) for Construction Admin support.

FAR VS. OTA CONSTRUCTION

Advantages

• Established clauses and remedies

• Extensive case law and precedent

• Familiar processes and training resources

• Defined dispute framework

Challenges

• Less flexibility

• Formal change processes

• Potentially slower adaptation

• Can become adversarial

Advantages

• Tailored administration framework

• Flexible risk allocation

• Project-specific incentives

• Potentially faster issue resolution

Challenges

• Must negotiate administration framework

• Fewer precedents

• Poor drafting creates administration risk

Neither approach eliminates construction administration problems. The difference is where the authority comes from and how the issue is resolved.

FAR OTA

Progressive Design Build with OTA (PDB w/OTA)

(non FAR Based)

What is Progressive Design-Build?

• PDB is a collaborative project delivery method where the owner, in this case the U.S.

Government, selects a design-build team based on qualifications first, then progressively develops the design, scope, schedule, and contract price with the design-builder.

o The design-builder is retained early, sometimes before the design has developed at all.

o The design-builder’s final project cost/price is not established as part of the selection process.

• Different from traditional Design-Build in which there is typically a 35% design starting point, there is a lack of design collaboration, and the FFP for design and construction is established at award.

Pros:

• Single Point of Contact

• Increased Design Collaboration >

Scope Alignment

• Open Book Estimating

• Cost and Schedule Risk Reduction

• Off Ramp Protection

Cons:

• Non-Traditional Administration

• Shared Risk

• Price not final until the fixed price negotiated for Agreement Phase 2

• The Agreement is Supreme: There is no default FAR safety net. If a right, remedy, or process is not explicitly written in the OTA, it does not exist. Read the agreement first, every time.

• The Bilateral Solution: When issues arise that the agreement does not cover, the only solution is negotiating a bilateral modification.

• Pre-Award Involvement is Critical: Collective team must work together to ensure agreement is defined to enable collaborative implementation. Define clear technical milestones, safety standards, and dispute processes early to prevent post-award gridlock.

• We are focusing on educating our workforce and our industry partners to embrace OTA flexibilities!

• Variety of Statutes still apply to OTs, e.g. Miller Act, DBA, Cybersecurity

OTA KEY TAKEAWAYS

Design Build to Budget (DBtB)

(FAR based)

ACCELERATED DESIGN BUILD

NEW FUNDING

MECHANISM:

10 U.S.C. 3241(F)

Questions?

Back up slides

Backup Slides

CUI

CUI

ACQUISITION TOOL COMPARISON

Acquisition Tools & Authorities Definition Project Suitability & Risk Profile Project Readiness Phase Deliverable(s)

Design-Build to Budget (DBtB)*

DBIA best practice. Optimize the budget in terms of quality, scope, schedule, and durability with innovative betterments and enhancements within the budget.

Best For Absolute Cost Certainty: Projects with well-understood functional requirements where speed and budget is prioritized, industry innovation is desired (e.g., hangar, dining facility). Optimizes scope, quality, and innovative betterments within a fixed budget, transferring design-completion risk to the D-B team.

• Validates achievement of minimal functional requirements within the fixed budget ceiling.

• Prioritized list of "betterments"

Progressive Design- Build (PDB)*

Highly Collaborative variation of Design Build, single contract awarded for design and construction. Final construction price is determined once the design "progresses" to 65 or 95 percent complete.

Best For Maximum Risk Reduction & Innovation: The most complex, urgent, or undefined projects (e.g., headquarters, SCIF, first-of-its-kind facility). Maximizes collaboration and innovation at earliest opportunity.

Provides highest level of cost and schedule certainty by defining price w/ the builder.

• Validated set of requirements and site constraints

• Collaborative design process focused on high-value engineering and innovation.

Accelerated Design- Build (ADB)*

Accelerated variation of Design Build, allowing contract award prior to project authorization and appropriation.

Best For Maximum Speed: Urgent, low-risk projects where the requirements are stable and well-understood.

• Clear, risk-free set of RFP performance requirements.

Integrated D/C (IDAC) / CM@Risk*

Collaborative project-delivery method; design and construction services remain separately structured, but the construction manager is selected before design completion. Note: Private sector CM@Risk

Best For Maximum Design Control: Complex projects where owner control of design is critical (e.g., hospitals and specialized facilities). Reduces risk by adding builder expertise during design, improving cost and schedule certainty over DBB.

• Validated "Cost-Centric" design package.

• Final efforts focused on construction documents vs.

re-validating scope.

Design-Bid-Build

(DBB)

Traditional approach to construction. Design and construction are sequential and typically implemented through separate FAR-based design and construction contracts.

Best For Simple, low-complexity projects with a stable, fully-defined design (e.g., standard admin building). Provides lowest apparent first cost but lack of collaboration creates the highest risk of reprogramming actions, change orders, and disputes leading to cost/schedule growth.

• Validated 35% Design Certification package

* These project delivery methods can be executed through traditional federal contracting (FAR) or the highly streamlined 10 U.S.C. § 2808a - Other Transactions for Facility Construction or Repair

Fort Liberty Smoke Hill Barracks Renovation Modified Early Contractor Involvement | USACE Omaha Rapid Disaster Infrastructure MATOC

Presenter

Louis “Lou” Zecca Chief Strategy Officer, Conti Federal

• More than 35 years of federal and commercial construction experience

• Previously Chief Operating Officer responsible for global project execution

• 27 years of active and reserve service as a Marine Corps Combat Engineer Officer

• Panelist, USACE Middle East District ADDM Town Hall, March 2026

• Fort Liberty case study published in The Military Engineer: Using Modified ECI to Achieve Mission Success

11 August 2026 | Sheraton Frankfurt Airport HotelCENAU Reverse Industry Day | Fort Liberty Case Study | 1 https://www.same.org/tmearticle/using-modified-eci-to-achieve-mission-success

ADDM SUITABILITY

The mission problem

Sequential delivery would have started after important decisions were already late.

Mold was identified in three barracks supporting ~1,200 soldiers. The team had to restore usable housing while scope, site conditions, design, and procurement risk were still developing. Pressure came from six conditions moving at the same time:

URGENCY: Readiness need could not wait for conventional sequencing.

UNKNOWN SCOPE: Two buildings inherited with partial demolition from prior contractor.

DESIGN IN MOTION: Assessment, demolition, and design had to mature together.

DECISION SPEED: Government responses had to match field conditions.

LONG LEAD PROCUREMENT: Critical equipment threatened delivery if ordered too late.

REPETITIVE PRODUCTION: Three similar buildings amplified every sequencing choice.

CENAU Reverse Industry Day | Fort Liberty Case Study | 2

TEAM COLLABORATION

How the model worked

The team moved from assessment to committed pricing as uncertainty was reduced.

Mobilize

Form the Integrated Project Delivery Team (IPDT), set access, align on the mission need.

Assess

Use key trade input to expose site conditions and define scope.

Develop

Advance the design through frequent working reviews.

Commit

Move trade scopes to firm fixed price when the scope is understood.

Execute

Overlap design, procurement, construction, mockups, testing, and user validation.

CENAU Reverse Industry Day | Fort Liberty Case Study | 3

TEAM COLLABORATION

How the team worked

The value of the IPDT came from how the team worked together, not simply who was on it.

Structure Behavior

• USACE Omaha, USACE Savannah, Fort Liberty, Army Materiel Command, designer, contractor, trades, and end users were connected early

• Key trades supported assessment and scope development instead of waiting for a completed design

• Frequent working reviews shortened the gap between field discovery and technical response

• Room mockups confirmed user needs, sequencing, and quality before work repeated across three barracks

• Constraint tracking kept decisions, procurement needs, and available work fronts visible

• Trade commitments were made as the team gained better scope and condition knowledge

CENAU Reverse Industry Day | Fort Liberty Case Study | 4

RISK REDUCTION & BENEFITS

Risk reduction before price commitment

Pricing commitments were made as scope and risk became better understood.

$2M Approximate budget reduction by the 35 percent design point

• Trades entered early under capped time-and-materials for assessment and planning

• Firm fixed price commitments were made after site conditions and scope were better understood

• Cost movement was visible while the design still had room to change

• Mockups reduced the risk of repeating defects across similar rooms and buildings

Procurement example: Switchgear with a 12-to-14-month market lead time was replaced with a flex-gear alternative delivered in 5 months. Dedicated outside air system (DOAS) units were sourced from a manufacturer in Poland, with Conti Federal QA staff visiting the factory to protect schedule and compliance.

CENAU Reverse Industry Day | Fort Liberty Case Study | 5

What the model produced

The project record shows schedule, cost, safety, workforce, and quality outcomes.

$74.1M Final Contract Value Award $69.4M. Growth driven by three Government directed modifications.

14 months To Beneficial Occupancy RDI benchmark: 15 months vs. 30 months

MILCON.

ZERO

Recordable Incidents 599,759 work hours. Zero lost-time accidents.

1,200 Soldiers Housed Three barracks restored: H4350, H4822, H5122.

Subcontractors 150 to 200 personnel on site daily. 94.6% small business.

LEED Silver Quality Complete systems replacement, third party commissioning, and LEED Silver certification.

CENAU Reverse Industry Day | Fort Liberty Case Study | 6

What was restored

Three barracks returned to service for the 18th Airborne Corps.

79,200 SF

Barracks Area Restored

26,400 SF per building

Soldier Rooms

68 rooms per barrack

Bed Capacity

Two beds per room

Exterior scale Three barracks restored: H4350, H4822, H5122.

Finished living space Complete interior and building systems replacement.

CENAU Reverse Industry Day | Fort Liberty Case Study | 7

TEAM CHALLENGES

What still challenged the team

Collaborative delivery gave the team a structured way to manage risk without disrupting execution.

Unknown Existing Conditions

Shear walls did not match available project information.

Investigation and structural modifications were required mid-execution, handled as a Government-directed modification rather than a dispute.

Major equipment lead times

Switchgear, chillers, and DOAS units threatened the required delivery sequence.

Added scope

Temporary climate control and attic access safety work were added during execution.

Schedule growth

Beneficial occupancy occurred after the original 12-month target. The 10-week slip was driven by three Government directed scope additions, not by delivery method failures.

CENAU Reverse Industry Day | Fort Liberty Case Study | 8

CLOSING LESSONS

What we would repeat and what we would change

Early involvement creates opportunity when the delivery structure supports faster execution.

Repeat

• Early trade involvement during assessment

• Staged commitment from capped time-and-materials to firm fixed price

• Empowered IPDT governance at project speed

• Mockups before repetitive production across similar spaces

Change

• Formalize partnering earlier and do not depend on team chemistry

• Set decision rights and response timelines before design begins

• Start the assumptions, decision, and risk record at NTP

• For OCONUS: map host nation access, permits, and code hierarchy before design advances

CENAU Reverse Industry Day | Fort Liberty Case Study | 9

CENAU APPLICATION

How Fort Liberty maps to the USACE PDB with OTA framework

The USACE PDB with OTA framework provides a path to formalize the collaborative behaviors Fort Liberty had to build in motion.

Fort Liberty PDB with OTA response

Unknown scope Use Phase 1 design and preconstruction services to fund investigation, constructability, estimating, scheduling, and procurement planning.

Design in motion Use progressive design and open book estimating, then make the Phase 2 pricing decision after scope and risk are sufficiently understood.

Urgency + decision speed Establish an empowered IPDT with clearly defined decision authority, an issue resolution ladder, and meeting cadence before design begins.

Long lead procurement Create approval paths for long lead equipment, utilities, enabling work, permitting, and early work packages.

CENAU Reverse Industry Day | Fort Liberty Case Study | 10

REF: USACE Playbook: Executing Progressive Design-Build (PDB) with Other Transaction Authority (OTA).

Repetitive production at scale Use mockups, integrated planning, and validation before mass production across similar spaces.

Lessons from the San Jose Airport Modernization Program

Reverse Industry Day | Future CENAU Acquisitions

Tony Funkhouser · Tim Conley · AECOM

Progressive Design-Build in Practice

AECOM | AUGUST 2026

INTRODUCTION

Owner-side and industry-side experience

Tony Funkhouser Vice President, Federal Strategy & Growth Lead, AECOM

PRESENTER EXPERIENCE

36 YEARS Army Engineer Officer and combat veteran

USACE Former Deputy Commanding General for Military, International and Interagency Operations

COMMAND Former CG, Southwestern and Northwestern Divisions;

Commander, Tulsa and Afghanistan South Districts

DELIVERY STRATCOM HQ, Aegis Ashore Poland, Fort Gordon Cyber Center, Fort Bliss and Fort Riley hospitals

Complex, mission-critical federal delivery, from both sides of the table.

Different facility types. Same delivery challenges.

SAN JOSE AIRPORT FUTURE C2 FACILITY

Active passenger operations Terminal + roadway phasing City, airlines, contractors

Mission operations Secure systems + infrastructure USACE, users, mission partners

SHARED DELIVERY CONDITION

Active operations ✓ ✓

Multiple stakeholders ✓ ✓

Evolving requirements ✓ ✓

Complex phasing / interfaces ✓ ✓

Schedule pressure ✓ ✓

RELEVANCE

ROADMAP

Five questions we’ll answer

What San Jose Airport illuminates about PDB + ECI under operational constraints.

01 Why PDB + ECI? Schedule compression

02 How was collaboration structured? Authority + decision cadence

03 How did the team retire risk? Risk moved upstream

04 What worked and what was difficult? Measured outcomes + challenges

05 What can USACE use? Procurement actions

Follow the case from owner rationale to procurement actions.

WHY THE OWNER CHOSE PDB

PDB cut the estimated path to operations from ~8 to ~4 years

TRADITIONAL DBB EST. + 4 YEARS

~8 YEARS TOTAL

Concept Design Procure Construct

PROGRESSIVE DESIGN-BUILD ~4 YEARS TOTAL

Concept Collaborative project development GMP Construction

Primary driver Schedule acceleration

Owner intent Retain design input while developing the GMP

Progressive pricing allowed scope, phasing and value decisions before the guaranteed maximum price.

THREE CONDITIONS FOR SUCCESSFUL PDB

PDB required more discipline

Schedule discipline

• Early design + construction schedule

• Defined deliverables

Budget discipline

• Continuous cost updates

• GMP focus + early value engineering

Collaborative project development

• Recurring owner-contractor coordination

• Rapid issue resolution + owner engagement

ECI enabled cost, schedule and constructability decisions before GMP.

HOW COLLABORATION WAS STRUCTURED

Authority in the room kept decisions moving

OWNER / CITY OF SAN JOSE

PROGRAM MANAGER

PROJECT

MANAGERS

Delegated authority

DESIGNER

Design + technical

CONTRACTOR

Cost + constructability

WORKING RHYTHM

Weekly owner–designer–contractor coordination · discipline breakouts · cost updates · escalation path

Key lesson: decision-makers must have authority in the room.

ECI + RISK-SHARING

ECI retired operational, interface and cost risk before GMP

OPERATIONS

Temporary terminal planned → Connector kept Terminal C gates operating → Temporary terminal avoided; ~$20M saved

DESIGN + CONSTRUCTION

Apron reconstruction risk → Torque piles + 6-ft coring through existing panels

→ Less concrete and months saved

COST + SCHEDULE

Utility uncertainty → Comprehensive investigation approved early

→ Fewer downstream RFIs and disruption

Owner authority + early contractor input changed solutions before risks became delay.

RESULTS AND BENEFITS

Early collaboration produced measurable outcomes

MONTHS AHEAD

Terminal A phasing

$60M

UNDER BUDGET

Continuous cost updates + GMP focus

~$20M

SAVED

Connector strategy

TEMPORARY CONNECTOR

ECI connector strategy kept Terminal C gates operating longer, avoiding the temporary terminal.

TERMINAL A PHASING

Joint phasing decisions maintained operations and shortened sequencing.

FOUNDATION REDESIGN

Early constructability input reduced apron reconstruction, concrete and schedule impact.

Mechanism → outcome: early collaboration produced cost, schedule and operational results.

CHALLENGES ENCOUNTERED

Five pressures remained

Challenge Complexity What made it difficult

Active operations HIGH 24/7 airport environment

Stakeholders HIGH Airport, airlines, City, public interests

MOT + phasing HIGH Four contractor teams; all travel modes

Utility uncertainty MEDIUM Design while adjacent work continued

Design evolution MEDIUM Last-minute changes and interface decisions

Collaborative project development resolved interfaces continuously while operations continued.

MOST IMPORTANT LESSON FOR CENAU

Stakeholder complexity makes alignment critical

OPERATIONS

SECURITY TECHNOLOGY

COMMAND +

CONTROL

FACILITY

INFRASTRUCTURE

USACE

END USERS MISSION PARTNERS

FACILITIES

ECI structures earlier stakeholder engagement and faster alignment.

WHAT PDB REQUIRES FROM THE OWNER

Five operating conditions owners must create

Surface risks early

Define decision authority

Maintain decision cadence

Integrate design + construction

Preserve transparency

TRANSPARENCY AROUND

COST SCHEDULE PHASING REQUIREMENT CHANGES

Owner-contractor collaboration requires active, disciplined owner participation.

FUTURE PROCUREMENT

Four acquisition actions for future USACE procurements

Translating San Jose’s delivery lessons into acquisition planning and owner operating requirements.

01 Decision rights

• Put empowered decision-makers in the room

• Define escalation thresholds early

• Maintain a recurring decision cadence

02 Cost + scope validation

• Update estimates continuously as design matures

• Validate scope before GMP

• Use value engineering before positions harden

03 Early contractor participation

• Bring constructability and phasing insight into design

• Identify utility, interface and operational risks early

• Resolve issues before they become downstream delay

04 Owner operating commitment

• Maintain active, disciplined owner participation

• Keep a recurring decision cadence

• Preserve cost, schedule, phasing and requirement transparency

Translate owner discipline into earlier, lower-risk decisions.

CLOSING

Three actions translate the San Jose lessons for future procurements:

THE TAKEAWAY: Earlier, disciplined decisions improve cost, schedule and operational certainty.

ENGAGE CONTRACTOR INPUT EARLY · ESTABLISH EMPOWERED GOVERNANCE

VALIDATE COST + SCHEDULE BEFORE GMP

Q&A

AECOM role and program scope

CIVIL

Site, utilities and enabling work

ROADWAY

7,600 ft; bridges, curb and MOT

AIRFIELD

Apron grading, pavement, lighting

TERMINAL

Terminal A + B interfaces

CONRAC

Rental car and parking improvements

PDB team contract $680M Phase 1

Supports Q3: risk retirement through ECI

UTILITY INVESTIGATION

CHALLENGE

Uncertainty surfaced early

PDB MOVE

Governance accelerated approval for comprehensive investigation

OUTCOME

Better data reduced downstream RFIs and disruption

PASSENGER BRIDGE

FOUNDATIONS

CHALLENGE

Apron reconstruction risk

PDB MOVE

Torque piles + custom 6-ft coring through existing panels

OUTCOME

Less concrete, less spoil and months saved

TEMPORARY CONNECTOR

CHALLENGE

Temporary terminal was planned

PDB MOVE

Connector kept Terminal C gates operating longer

OUTCOME

Temporary terminal avoided; about $20M saved

Supports Q4: sustainability and terminal outcomes

LEED

SILVER

Terminal B First entirely new passenger terminal west of the Mississippi with certification

1.12 MW Solar array

3.4-acre Conrac roof; projected 1.6M kWh annually

20% Power offset Expected share of garage power demand

56% Lighting savings LED fixtures versus traditional lighting

Regular budget reviews let the team redirect opportunities toward long-term value.

TERMINAL B CONRAC SOLAR ARRAY

Supports Q3 + Q4: MOT and phasing evidence

TERMINAL A Busiest

TERMINAL B New

CONRAC + PARKING Access

ROADWAYS Drop-off

Operational continuity was a design requirement.

Plans coordinated buses, shuttles, taxis, freight, pedestrians, meeter-greeters and contractor access.

TERMINAL + ROADWAY INTERFACES CONRAC + ACCESS ROADWAY

Theater Command As the sole Theater Special Operations Command, we project power, deter adversaries, and respond instantly to European theater crises. The headquarters is our nerve center.

A Multifaceted, Joint Team A dynamic mix of professionals from all military branches, interagency partners, and Allies who must collaborate laterally to solve complex problems under immense pressure.

Collaborative and Flat Culture Operations thrive on collaboration. Success depends on building adaptive teams where good ideas must flow from anywhere and everywhere to solve problems faster than our adversaries.

UNCLASSIFIED

UNCLASSIFIED

Aligning Infrastructure to the Mission Sub-unified Command under U.S. EUCOM | Responsible for all U.S. Special Operations in Theater | The critical link between strategic intent and tactical execution

Executing missions in over

25 European Countries

The Need - A Facility as Dynamic as the Mission We need a modern, integrated weapon system in the form of a facility.

The Operational Problem Grossly Insufficient & Dispersed Space

• Operating in less than 60% of authorized space.

• Scattered across three disconnected, aging buildings.

Critically Aged Infrastructure

• Constructed in 1939

• Last full renovation in 1967.

• Facilities suffer from deficient HVAC and power, failing mechanical systems.

UNCLASSIFIED

UNCLASSIFIED

The Integrated Solution Consolidation

• Unifying 400+ personnel from three legacy buildings into a single, purpose-built headquarters.

Secure & Uninterrupted Resilience

• Integrate 40,000 square feet of Level 6 Secure Space

• Zero mission downtime with redundant systems

Engineered for Tactical Innovation

• Integrates forward-leaning operational concepts

• Includes a state-of-the-art Operations Center (OC)

• Project: U.S. Special Operations Command Europe (SOCEUR) Headquarters

• Echelons Above Brigade Command & Control Facility (C2F)

• Location: Patch Barracks, USAG Stuttgart, Germany

– Site Clearing: 3.0 acres of site preparation

– Primary Demolition: Full demolition of existing Patch Commissary.

– Demolition Footprint: ~ 55,000 SF total area

– Hazardous Contaminants Abatement (Building 2350):

• Asbestos-containing materials in pipe gaskets, fire dampers, and fire doors

• Old mineral wool insulation in ceiling tiles, above suspended ceilings, and in ventilation ducts

• Polycyclic aromatic hydrocarbons (PAH) in roofing felt and exterior joints

• Fluorescent light tubes with small capacitors and radioactive smoke detectors

– Regulatory Compliance: Hazardous waste removal in accordance with German Technical Rules (TRGS 519, 521, 524)

– Total Area: 113,620 SF Command and Control Facility

– Multi-Story Layout: 3 floors of approximately 42,000 SF each

– Design: Permanent Construction in accordance with DoD UFC 1-200-

– USACE Center of Standardization (COS): Savannah District Echelons Above Brigade (EAB) Command and Control Facility

– USACE Centers of Expertise:

Protective Design Center (Omaha) Control System Cybersecurity (Huntsville) Electronic Security Systems (Huntsville)

– Dedicated Secure Area: ~ 36,000 SF of Level 6 secure space

– Compliance: Intelligence Community Directive (ICD) 705

– Special Use Spaces:

• Operations Center (OC)

• Network Operations Center (NOC)

• Joint Operations Command (JOC)

– Secure Construction Controls:

• Full Radio Frequency (RF) shielding required on all 6 sides of secure areas

• TEMPEST risk assessment and protection (AR 25-2 compliance)

• Secure access controls and localized Intrusion Detection Systems (IDS)

• Separation of foreign partner networks. Dedicated 'NATO Secret’ area

– Total Parking Footprint: ~ 115,000 SF structure

– Structural Design: 4-level concrete deck parking garage

– Capacity: 450 vehicle spaces

– Accessibility (ABA) Compliance:

• 9 total accessible spaces complying with SDDCTEA Pamphlet 55-17

• 2 spaces specifically designed to accommodate high-roof passenger vans

– Sub-Level Infrastructure: Underground level of the garage is structurally configured to house the primary fire protection sprinkler water tank

– Mechanical

• Heating System: Connect to the district heating system

• Mechanical Ventilation: Compliance with ASHRAE 62.1, DIN EN 15251, and DIN 1946 standards

• Air Conditioning & Cooling: Dedicated central chiller systems in accordance with UFC 4-140-03 and UFC 3-410-01

– Fire Suppression Infrastructure:

• Automatic wet-pipe fire protection system throughout all facility areas, UFC 3-600-01

• Dedicated Fire Pump Building

• Sprinkler Water Tank: ~ 230 m^3 storage tank

– Electrical

• Primary: Sourcing requires a new

10kV switchgear transformer station on-site with a 1,200kVA transformer

• Redundancy: Separated feeds

• Emergency Generation: 1,200kW standby diesel generator with fuel storage tank

• Uninterruptible Power Supply (UPS): Bridge critical power gap.

– Information Systems

• Service Entrance: Redundant and separated communications from Outside Plant (OSP)

• Inside Plant (ISP) Infrastructure:

• Stacked Telecommunications Rooms

(TR ) h fl h i NIPR

– Water Protection Zone: Project site lies within Baden-Wurttemberg Water Protection Zones III and IIIA; strict stormwater and pollution prevention required

– Tree Protection (DIN 18920):

• Mandatory protection of all remaining on-site trees during construction

• Tree-cutting strictly limited to the winter window (October through February)

– Wildlife & Ecological Mitigation:

• Mandatory rare bird and bat assessment 6 months prior to demolition

• Construction of habitat compensation nesting boxes on-site if breeders are found

– Sustainability Mandate: LEED is no longer required. Comply Guiding Principles and Host Nation Requirements

Statutory Authority & Playbook Process

• MILCON OTA Authority (10 U.S.C. § 2808a)

PDB via OTA is authorized for MILCON facility construction and repair through qualifications-based selection, a Guaranteed Maximum Price (GMP) negotiated only after design is significantly advanced, and a Government "off-ramp" clause if GMP agreement cannot be reached.

• Accelerated Design Funding (10 U.S.C. § 3241(f)(1)) This authority lets USACE award the Phase 1 contract using MILCON Design Appropriations, getting a design-builder on board before the construction portion is authorized and appropriated in FY29 — directly resolving PPMD's funding-timeline concern.

Access to Specialized Expertise

• Level 6 Secure Facility Requirements & OTA Advantage

This project requires highly specialized capabilities, including advanced Level 6 secure facility construction, six-sided RF shielding, TEMPEST enclaves, complex IDS, and high-consequence cybersecurity measures. An OTA operates outside the FAR's restrictive procurement framework, making the project uniquely attractive to leading-edge commercial firms who otherwise avoid the compliance burdens and rigid cost-accounting standards of traditional government contracting.

Market Intelligence is key – Need to demonstrate industry support for the PDB w/OTA approach

~5% concept design or statement of services is most appropriate

Pitch meetings are not about the firms developing concept designs but more about getting insight into how well their team works and will collaborate with the Government team

Price proposal is for Agreement Phase 1 – Design & Preconstruction Services only

Negotiation of Articles (i.e. Terms & Conditions) occurs. Agreement awarded by an AO.

Phase 1 maximizes early design collaboration and involves open book estimating.

Block 4 is ~35% design phase at which the Budget Estimate Package (including DD1391 is submitted).

From Block 5, the design progresses up to 65% - 95%. Long Lead Item and Resource Planning occurs.

In the final block, you negotiate the Guaranteed Maximum Price (GMP) for the construction effort.

There are 2 main off ramp points at which the Government may decide to end the agreement.

USACE would retain the design and procure construction separately.

Modify Agreement to award Phase 2 with MILCON construction funds; Transition to fixed price

Long Lead Item procurement occurs and the Fast Tracking of early work, if applicable

Design Finalization and Construction efforts will overlap, as design actually gets finalized in Phase 2

Administrative Agreements Officer (AAO) (similar to an ACO) will be appointed, as well as a construction-oriented Agreements Officer Representative (AOR)*

Remainder of Phase 2 operates similar to a traditional construction project

QUESTIONS?

Stay engaged with us online:

@EuropeDistrict facebook.com/EuropeDistrict www.nau.usace.army.mil @europedistrict

Europe District, U.S. Army Corps of Engineers

Europe DISTRICT:�Building Strong�Together
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Innovative Methods For Construction �Overview
Delivery Method Toolbox
Other Transaction Authority (OTA) Overview
What is Other Transaction Authority (OTA)?
FAR vs. Ota Construction
Progressive Design Build with OTA (PDB w/OTA)�(non FAR Based)
What is Progressive Design-Build?
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OTA Key Takeaways
Design Build to Budget (DBtB)�(FAR based)
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Questions?
Back up slides
Backup Slides
Acquisition Tool Comparison
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Progressive Design-Build

in Practice

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Soceur c2f scope
Site preparation & demolition of B2350
Primary facility requirements
Secure area construction
Parking garage structure
Building technical systems
Environmental and host nation compliance
Statutory Alignment
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File details come from the government source that posted it. Updated .