I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

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Regional ContractingOpportunities - USAF

Col Sal Nodjomian, USAFPrograms Division Chief

DCS/Logistics, Installations & Mission Support

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OverviewAir Force Overview

PrioritiesUSAF Military Construction (MILCON)

MILCON Program Overview and FY2009 ForecastFuture Projects in Planning

Other Construction OpportunitiesECIPUtilities PrivatizationNAFOperations and MaintenanceDefense Health Program (DHP)

USAF MILCON Design and Construction ExecutionMILCON TransformationAFCEE Contract Toolbox

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OverviewAir Force Overview

PrioritiesUSAF Military Construction (MILCON)

MILCON Program Overview and FY2009 ForecastFuture Projects in Planning

Other Construction OpportunitiesECIPUtilities PrivatizationNAFOperations and MaintenanceDefense Health Program (DHP)

USAF MILCON Design and Construction ExecutionMILCON TransformationAFCEE Contract Toolbox

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Total Air Force: Where we are

Overseas12 Major Bases

2 Minor Bases14 Overseas Bases

CONUS72 Major Bases80 Minor Bases

152 CONUS Bases

Bases are 3-D Weapon Systems

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Personnel costs have increased 51% overPersonnel costs have increased 51% overthe last ten yearsthe last ten years ---- but number ofbut number of

personnel has remained relatively constantpersonnel has remained relatively constantRising Personnel

Costs

Aging AircraftInventory

Cost to Operatethe Fleet

FiscalEnvironment

Aircraft readiness rates steady, but costs toAircraft readiness rates steady, but costs tooperate and maintain fleet over the lastoperate and maintain fleet over the last

decade are up 87%decade are up 87%

Aging alone is not the issueAging alone is not the issue –– it is theit is thedecreasing military utility of some aircraftdecreasing military utility of some aircraft

Budget growth is slowingBudget growth is slowing

Today’s Fiscal Environment

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Air Force Priorities

Winning the war on terror… and preparing for thenext warDeveloping and caring forAirmen … to maintain ourcompetitive advantageRecapitalizing andmodernizing our agingaircraft and equipment …to meet 21st Centurychallenges

“We will fundtransformation through …organizational efficiencies,process efficiencies,reduction of legacysystems and manpowerwhile sustaining GWOTand ongoing operations insupport of the JointFight.”

- Michael W. WynneSECAF

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Bed down new missionsSustain what we own… “keep good facilities good”Restore and modernize our infrastructureReduce our infrastructure, where we canOptimize use of public and private resourcesInvest in quality of life (QoL) improvementsContinue our environmental leadership

7

Vandenberg AFBChemical Test Laboratory

Vandenberg AFBChemical Test Laboratory

Eglin AFBChapel OneEglin AFB

Chapel OneSavannah Int’l

Fire StationSavannah Int’l

Fire Station

Air Force Investment Strategy

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OverviewAir Force Overview

PrioritiesUSAF Military Construction (MILCON)

MILCON Program Overview and FY2009 ForecastFuture Projects in Planning

Other Construction OpportunitiesECIPUtilities PrivatizationNAFOperations and MaintenanceDefense Health Program (DHP)

USAF MILCON Design and Construction ExecutionMILCON TransformationAFCEE Contract Toolbox

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0

500

1,000

1,500

2,000

2,500

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

AF PB Congressional Adds DERF & Supplemental BRAC 2005

MILCON Funding ProfileIncludes FY08-13 FYDP (Total Force)

As enacted PB/FYDP

$M

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$183

$64

$107

$512

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

F Y 0 9

FY09 MILCON RequirementsTotal Force Program - $867M

F-22 JSFDMRT TFI/Admin/Base Ops.

Dormitories Community Support

Planning & Design P-341

Predator OtherClassified

Modern./Trans. $512M

Develop Airmen / People $183M

Must Pay $107M

Win War on Terror $64M

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FY09 Mid-Atlantic Air ForceMILCON Opportunities (’08 PB)

Burlington, VTSecurity Forces Facility

Hulman Field, INAir Support Operations

Squadron (ASOS)

Columbus AFB, MSChild Development

Center

Hancock Field, NYPredator Beddown

Dover AFB, DEFitness Center

Eglin AFB, FLF-35 Student Dormitory& F-35 Dining Facility

Moody AFB, GATraining Complex

Robins AFB, GADMRT Aircraft Hangar

15 Projects at 12 Bases ~ 19% of MILCON Program

McGuire AFB, NJMunitions Storage Area

MacDill AFB, FLSOCCENT HQ Facilities

Hurlburt AFB, FLADAL Special Ops School

Mansfield, OHRED HORSE Beddown

Andrews AFB, MDAdministrative Fac. Addition

New Castle MAP, DEInfo. Ops. Exploitation Facility

Shaw AFB, SCDormitory

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FY09 Mid-Atlantic Air ForceMILCON Opportunities (APOM)

Hulman Field, INAir Support Operations

Squadron (ASOS)

Andrews AFB, MDAdministrative Fac. Addition& Administrative Complex

Columbus AFB, MSChild Development

Center

Burlington, VTSecurity Forces Facility

Hancock Field, NYPredator Beddown

Dover AFB, DEFitness Center

Eglin AFB, FLF-35 Student Dormitory

Moody AFB, GATraining Complex

Robins AFB, GADMRT Aircraft Hangar

12 Projects at 11 Bases ~ 26% of MILCON Program

MacDill AFB, FLSOCCENT HQ Facilities

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0200400600800

1,000

1,2001,400

1,600

00 01 02 03 04 05 06 07 08 09 10 11 12 13Construction Congressional Adds Supplemental

MFH Construction Funding ProfileIncludes FY08-13 FYDP

As enacted* PB/FYDP

$M

*FY07 Reflects NDAA

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Completed Projects: 6,128 unitsDyess, Elmendorf I & II, Kirtland, Lackland I, Robins I, Wright-Patterson I

Awarded/Under Const: 26,661 unitsBuckley, Dover, Hanscom, Moody, Hill, Little Rock,McGuire/Fort Dix, Hickam I & II, Nellis, Offutt, Patrick, Scott,AETC Group I (Altus, Luke, Tyndall, Sheppard), USAFA, ACC II(Davis-Monthan, Holloman), AFSPC Tri-Group (Peterson, LosAngeles, Schreiver), BLB (Barksdale, Langley, Bolling),Robins II, AETC Group II (Columbus, Goodfellow, Laughlin,Maxwell, Randolph, Vance),

Developer Selected & Congress Notified:6,122 units

AMC East (Andrews, MacDill), Lackland II, Vandenberg, Beale,AMC West (Fairchild, Tinker, Travis), Wright-Patterson II

In Acquisition: 0 unitsIn Concept Development: 5,919 units

Cannon, Eglin/Hurlburt/Edwards, Shaw, FE Warren

Assessing FeasibilityAll Installations Not Yet Privatized

Housing Privatization Progress

25 Sep 2007

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Mid-Atlantic Air ForceHousing Privatization Opportunities

Shaw AFB, SCIn Development

Eglin AFB, FLIn Development

Hurlburt Field, FLIn Development

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OverviewAir Force Overview

PrioritiesUSAF Military Construction (MILCON)

MILCON Program Overview and FY2009 ForecastFuture Projects in Planning

Other Construction OpportunitiesECIPUtilities PrivatizationNAFOperations and MaintenanceDefense Health Program (DHP)

USAF MILCON Design and Construction ExecutionMILCON TransformationAFCEE Contract Toolbox

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Mid-Atlantic Air ForceUtilities Privatization Opportunities

15 Systems at 9 Bases

Wright-Patterson AFB, OHNatural Gas

Shaw AFB, SCNatural Gas

Arnold AFB, TNSewer, Water

Savannah ANGB, FLElectrical, Sewer

Hanscom AFB, MAElectric, Natural Gas,

Sewer, Water

Dover AFB, DESewer

MacDill AFB, FLElectrical

Robins AFB, GANatural Gas

Cape Canaveral AFB, FLWater, Sewer

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Mid-Atlantic Air ForceNAF Opportunities

6 Projects at 5 Bases; $82M

Wright-Patterson AFB, OHAir Force Museum Addition

(Privately Funded)

Langley AFB, VAConstruct Visiting QuartersLittle Rock AFB, AR

Construct Shopping Center

Charleston AFB, SCExpand Shopping Center

Dover AFB, DEConstruct Shoppette

Langley AFB, VAAdd/Alter Youth Center

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Grissom ANG, INTrans Mx Facility

Jacksonville IAP, FLAircraft Hangar

McGuire AFB, DEPMEL Facility

Trans Mx Facility

Westover ANG, MAHangar Doors

Mid-Atlantic Air ForceFY08 O&M Opportunities

5 Projects at 4 Bases; $16M

Operational and Transportation Facility Repairs

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Maxwell AFB, ALElectrical Distro

Pope AFB, NCAirfield

Eglin AFB, FLAirfield, Electrical Distro

Charleston AFB, SCAirfield

Dover AFB, DERunway

Mid-Atlantic Air ForceFY08 O&M Opportunities

8 Projects at 7 Bases; $127M

Airfield Pavements and Electrical/Water Distribution Repairs

Columbus AFB, MSElectrical Distro

MacDill AFB, FLElectrical Distro

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Columbus AFB, MSAircraft Maint Admin

Keesler AFB, MSVisiting Airmens Quarters

Eglin AFB, FLVisiting Airmens Quarters

Dover AFB, DEForce Development Ctr

Andrews AFB, MDMaint Group HQ

Mid-Atlantic Air ForceFY08 O&M Opportunities

5 Projects at 5 Bases; $21M

Dormitory and Admin Facility Repairs

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Eglin AFB, FLSquadron Ops HQ

MacDill AFB, FLHangar Fire Suppression

Charleston AFB, SCAir Freight Terminal Roof

Dover AFB, DECE Shop

Selfridge ANG, MICE Readiness Shop

Mid-Atlantic Air ForceFY09 O&M Opportunities

5 Projects at 5 Bases; $12M

Operational and Maintenance Facility Repairs

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Wright-Patterson AFB, OHWater Mains

Arnold AFB, TNAirfield Pavements

Eglin AFB. FLAirfield Pavements

Underground Elec DistroTyndall AFB, FL

Airfield Pavements

Dover AFB, DEAirfield Pavements

Underground Elec Distro

McGuire AFB, NJAirfield Pavements

Mid-Atlantic Air ForceFY09 O&M Opportunities

8 Projects at 6 Bases; $64M

Airfield Pavements and Electrical/Water Distribution Repairs

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Tyndall AFB, FLVisiting Airmens QuartersVisiting Officers Quarters

Keesler AFB, MSVisiting Airmens Quarters

Hanscom AFB, MATemp Lodging Fac

MacDill AFB, FLVisiting Officers Quarters

Mid-Atlantic Air ForceFY09 O&M Opportunities

5 Projects at 4 Bases; $29M

Dormitory and Admin Facility Repairs

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Patrick AFB, FLClinic

Dover AFB, DEClinic

Scott AFB, ILHospital

FY07 (~$35M)

FY07-08 O&M Medical/DentalRepair Projects, Eastern USA

3 Projects at 3 Bases; $40M

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OverviewAir Force Overview

PrioritiesUSAF Military Construction (MILCON)

MILCON Program Overview and FY2009 ForecastFuture Projects in Planning

Other Construction OpportunitiesECIPUtilities PrivatizationNAFOperations and MaintenanceDefense Health Program (DHP)

USAF MILCON Design and Construction ExecutionMILCON TransformationAFCEE Contract Toolbox

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Future MILCON Execution

Efficiencies Gained

CurrentMILCONExecution

Improvement MethodologyManpower savings

Approximately 40%

Improved management and controlAccountability at a single agencyImproved program integrityStandardized business processesStandardized designs/contracting methodsAgent relationships maintained/streamlinedUniform mgt and control of AF MILCON

IPTs conducted Jul/Aug 2006MAJCOM A7CPs and AFCEE

Developed roles, responsibilities, businessprocesses

HAF/A7CP; MAJCOMs; AFCEEAFCEE accepts DM/CM role fromMAJCOM/A7CCsAFCEE to execute new/current missionMILCON, Housing MILCON, ERA

Allows focus on developing clear standardsi.e. - sustainability, architectural comp, etc

MILCON TransformationACC

AMC

AETC

AFMC

AFSPC

AFSOC

USAFA

USAFE

11 WG

PACAF

DM/CM

DA/CAUSACE

NAVFAC

AFCEE

SAF/FMBIC

authorizefunds

TOA/POMHAF/A7CP

DM/CMDA/CAUSACE

NAVFAC

AFCEE

SAF/FMBIC

TOA/POMAFCEE

authorizefunds

releasefunds toDA/CA

releasefunds toDA/CA

or

or

or

orHAF/A7CP

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AFCEE Contract Toolbox

Worldwide Env Restoration & Construction (WERC)5 year IDIQ…$4-10B capacity…11 large, 10 small, 6 ‘8(a) firms

Worldwide Planning, Program, & Design (4PA-E)5 year IDIQ…$1.1-2.75B capacity…16 large, 6 small, 8 ‘8(a) firms

Global Engr, Integration & Tech Assistance (GEITA05)5 year A&AS…$750M - 1.75B capacity…3 large, 2 small firms

Design-Build Plus 03 (DBP03)5 year IDIQ…$2.5B capacity…9 large, 6 ‘8(a) firms

Heavy Engineering, Repair, and Construction (HERC)5 year IDIQ…$6 - 15B capacity…”Birth” date: 30 Mar 2006Focused on Heavy and General Construction…contract tool specificallybuilt for MILCON projects

• Hangars, Dormitories, Fitness Centers, Aprons, etc.

Next: “Follow-on’s for 4PA-E and WERC”

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Headquarters U.S. Air Force

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Open Discussion / Wrap-up

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I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

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Backup Slides

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Facility Energy TransformationDescription:

Since 2001 energy costs rising 42% while energy consumptiondown only 8% AF-wideMust reduce energy consumption and stabilize energy coststhru use of renewable resources and improved energyequipment efficiencyE.O. 13423, Strengthening Federal Environmental, Energy andTransportation Management, 24 Jan 07

Annual 3% energy reduction from 2003 baseline, 30%/10yrsAnnual 2% water reduction from 2007 baseline, 16%/8 yrs15% of all AF facilities meet sustainable building GuidingPrinciples by 2015Implement Environmental Management System to collect , analyzeand report progress towards E.O. implementation

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Facility Energy Transformation

Impact/Benefit:Reduced utility costs, stabilized cost forecastIncreased Renewable Energy reduces fossil fueldependenceGreenhouse Gases reduced using Renewable Energy andalternative fuels

Resources Required: To achieve 3%/yr reductionESPC -- $150-200M/yrUESC -- $20-40M/yrECIP -- $10-30M/yr14 FY08-13 POM Initiatives -- $20-50M/yrMAJCOM FO -- $100M/yrMILCON – 2-6% increase in new construction costs todesign and build to LEED – “Silver” certification level

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$202 Billionin Plant

ReplacementValue

200M Sq Yds ofAirfield PavementsNearly 500 Miles

of Runway

JustNumbers?

1 ½ TimesDoubletree Hotels

Over 88 MicrosoftCorporations

10M Acresof Land

Twice the Areaof New Jersey

Arlington/AlexandriaCombined

As of FY99/4

Physical Plant Profile

700M Sq Ftof Facilities

88,000 Homes

65,000 Dorm Rooms

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Factors Driving CETransformation

INFRASTRUCTURE

TECHNOLOGY PROCESSES

PEOPLE

Excess Capacity

Budget Pressures

IT Transformation

OSD BusinessEnterprise Transformation

SECAF DataTransparency

Continuous ProcessImprovement

Best Practices / Corps of Discovery

Asset Management

Capital ConstructionConsolidation

Quality of Life

Blue Suit Review

Energy

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Corps of DiscoveryTechnology and Processes

Team comprised of representatives from HAF/SAF,MAJCOMs & bases with variousspecialties/expertiseVisited major private sector companies with largereal property holdings…or manage a world-wideportfolio

GM, GE, ExxonMobil, IBM, Bank of AmericaTrammell Crow (CB Richard Ellis), Jones Lang LaSalle

Trip reports highlight best-in-class processes andtools that could be incorporated into CE processes

Strategic sourcing of materials/servicesEnterprise-wide view of Asset Management

Reports identify potential opportunities for furtherstudy/analysis

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Asset Management (AM)Description:

“AM is systematic and integrated practices through whichthe AF optimally manages its natural and built assets andtheir associated performance, risk and expenditures overthe lifecycle to a level of service to support missions andorganizational goals.”Huge paradigm shift; includes AF-wide KPIs, standardservice levels, centralized procurement where feasible

Impact/Benefit:Will optimize assets to the right size, cost and conditionIncreased efficiency will eventually yield significant costsavings, better service to our customers

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Core AM Capabilities:Portfolio Management

CurrentRequirements

FutureRequirements

MaintainAssetsSustain

Run to failure

UpdateAssetsRestore,

Modernize

AcquireAssetsMILCON

Make Better UseOf Assets

Optimize Space,Recover Value

DivestAssetsDisposal,

Pickle

LeverageAssets

EUL,Barter

AvailableAssets

RequiredAssets

Capability Assessment,Gap Analysis

Deliberate, integrated analysis across the entire AF portfolio

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AF MILCON Transformation

AFCEE assumes traditional MAJCOM DM/CM roleSignificant manpower savings

138 civilian positions moved from MAJCOMs to AFCEESingle entity dealing with Agents

USACE, NAVFAC, AFCEEAgent relationships maintainedUniform management and control of AF MILCONprogram

AFCEE will execute and manage new/current missionMILCON, Housing MILCON, ERA projectsMAJCOMs will plan/program/prioritize theirrequirements and advocate for funds

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AF MILCON Transformation

Allows focus on developing clear standardsi.e. - sustainability, architectural compatibility, etc

Regional Program Management Offices beingestablished to interface with base and MAJCOMcustomers

Hickam AFB, HI; Ramstein AB, Germany; andSan Antonio, TX

Transformation accomplished through HeadquartersAF Civil Engineer and AFCEE reorganizationsAFCEE has proven track record of execution in Iraq

Awarded – $3.2B and 355 projectsNew work – $1.2B from ’06 supplemental and FY07program