Attachment F - Reverse Industry Day -Full Slide Deck.pdf
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Department of the Army European Command
About this file
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 |
| Slide Number 2 |
| 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? |
| Slide Number 10 |
| 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 .