Global Transformation of theNaval Facilities Engineering Command

---Presentation to the Washington SAME DC Post

RADM Mike Loose

Commander, Naval Facilities Engineering Command &

Chief of Civil Engineers23 September 2004

2 September 20042

• NAVFAC Overview

• Major program initiatives that may affect you

• Our Partnership Challenges

Today’s Brief

3 September 20043

Venture AcquisitionPPV / EUL / Lease - Construct

Venture AcquisitionPPV / EUL / Lease - Construct

FinancialManagement

Disposal• Demolition• Excess Facilities• Outleasing

Disposal• Demolition• Excess Facilities• Outleasing

EnergyUtilities

ContractingReal EstateContracting NWCF

Mgmt

FacilitiesContracting /Privatization

Tech LiaisonContractors, Engrs

SRMMILCONCEC Officer/

NAVFAC

AT-FPAshore

AT-FPAshoreCommunity/Gov’t

LiaisonAICUZ

RangeMgmt

Planning• Strategic• Global • Contingency• Regional

Planning• Strategic• Global • Contingency• Regional

Recapitalization• Restoration• Modernization

Recapitalization• Restoration• Modernization

Sustainment• Operate and Maintain

Sustainment• Operate and Maintain

EnvironmentalPlanning, Compliance,

Conservation & Cleanup

EnvironmentalPlanning, Compliance,

Conservation & Cleanup

Our Business…Facilities Engineering

Renewables

Construction• Acquisition Process• MILCON

Construction• Acquisition Process• MILCON

BRACBRAC

4 September 20044

CombineCommands

CombineCommands

• Fragmented facilities support to Regional Commanders

• Split accountability• Duplication, redundancy, and too much overhead

PRIDUADDU Commander

Navy Installations

NAVFACNAVSUP

COMFISC

FISCs

EFDLANT

RegionalCommanders

EFDSOUTH

PWCs

EFDSW

EFDPAC

EFAs EFAs EFAs OICCs

PACFLTCFFCPRIDUADDU Commander

Navy Installations

NAVFACNAVSUP

COMFISC

FISCs

EFDLANT

RegionalCommanders

EFDSOUTH

PWCs

EFDSW

EFDPAC

EFAs EFAs EFAs OICCs

PACFLTCFFC

MisStructuralStructural Alignment

5 September 20045

CommanderNavy Installations

NAVFACNAVSUP

COMFISC

FISCs

NAVFACLANT

NAVFACPAC

RegionalCommanders

FAC EngrCommands/

Reg Engr

PRIDUADDU CFFC PACFLT

• Established clear accountability to Regional Commanders• Focused/aligned to drive efficiency, effectiveness, and savings• Reduce NAVFAC from 25 to 16 commands

Structural AlignmentEnd State

6 September 20046

• FY 2004– Name Change –Atlantic Division, NAVFAC to NAVFAC Atlantic = Complete– Name Change – Pacific Division, NAVFAC to NAVFAC Pacific = Complete– Establish NAVFAC Midwest (EFA Midwest+PWC Great Lakes) = Complete– Establish NAVFAC Washington (EFA Chesapeake+PWC Washington) = Complete– Establish NAVFAC Mid-LANT (NAVFAC Atlantic Hampton Roads IPT+PWC Norfolk) =

Complete– Establish NAVFAC Far East (OICC Far East+PWC Yokosuka) = Complete– Decommission EFA West (Daly City, CA) = 30 Sep

• FY 2005– Establish NAVFAC Marianas (OICC Marianas+PWC Guam) = 1 Nov– Establish NAVFAC Hawaii (NAVFAC Pacific Pearl IPT+PWC Pearl Harbor) = 1 Mar– Establish NAVFAC Southwest (SW Division EFD+PWC San Diego) = 1 Aug

• FY 2006– Establish NAVFAC Southeast (SOUTHDIV, EFA Southeast and PWC Jax)

Facilities Engineering CommandsTransformation Timeline

EFA = Engineering Field ActivityOICC = Officer in Charge of Construction

PWC = Public Works CenterIPT = Integrated Product Team

7 September 20047

Functional Alignment“The Ultimate Force-Multiplier”

NA

VFAC

LAN

T

NA

VFAC

PAC

NA

VFAC

Far East

NA

VFAC

Mid-A

tlantic

NA

VFAC

Northeast

NA

VFAC

Washington

NA

VFAC

Midw

est

NA

VFAC

Southeast

NA

VFAC

Northw

est

NA

VFAC

Europe

NA

VFAC

Marianas

NA

VFAC

Haw

aii

NA

VFAC

Expeditionary Logistics Center

NA

VFAC

Engineering Service Center

Navy C

rane Center

NAVFAC HQ

NAVFAC LANT NAVFAC PACN

AVFA

C Southw

est

Cont. Engineering (CE)

Environmental (ENV)

Real Estate (RE)

Base Development (BD)

Capital Improvements (CI)

Acquisition (ACQ)

Financial Mgmt (FM)

Cmd Info Officer (CIO)

Chief Engineer (CHENG)

Counsel (CNSL)

Public Works (PW)

Co

mm

an

ds

Business/Support Lines

Vertical:• Mission Accountability• Client Interface for

Workload Execution• Performance

Assessment

Horizontal:• Common Business

Processes• Workload Analysis

and Shaping• Metrics

Spec. Ctrs.

8 September 20048

FACILITIES ACQ$7.8 Billion

Plng/Design/Const

Constructionand ServiceContracting

Public WorksOperations

Seabee Logistics Support

HQ $.04 Billion 1%

20%

3%

$4.9 B

$0.9 B

$.16 B

PRIVATE INDUSTRY $6 Billion

84%

$7.2B

76%

NAVFAC FY04 Macro Funding Flow

9 September 20049

• Capital Improvements–Construction

–Design A&E

–Design In-House

–Specialized Technical Services

–Ocean Engineering

• Environmental–Environmental Planning/NEPA

–Environmental Compliance & Conservation

–Environmental Restoration

• Base Development–Facility Planning

–Project Development

• Public Works–CESE Mgt/WHE

–Services

–Utilities/Energy

–Facility Mgt and Engineering Services

–FSC Technical/Program Mgt

• Real Estate

• Contingency Engineering–Contingency Engineering/Mil Ops

351 Deliverables Full range of Facilities

Engineering Services for

USN/USMC Support

AT/FP ProgramATFP Products & Services in Capital Imps, Base Dev, and Contingency Engineering

NAVFAC Products & ServicesBy Business Line

10 September 200410

0.0

0.5

1.0

1.5

2.0

2.5

2000 2001 2002 2003 2004 2005

COMPLIANCE

OTHER

Program Funding

$ Billions

FISCAL YEARSource: President’s Budget, FY05

0.0

0.5

1.0

1.5

2.0

2.5

2000 2001 2002 2003 2004 2005

COMPLIANCEQUALITY OF LIFE

OTHERNEW MISSION

Program Funding

$ Billions

FISCAL YEARSource: President’s Budget, FY05

BACHELOR HOUSING

REPLACEMENT/MODERN.

WATERFRONT/AIRFIELDS

COMBAT TERRORISM

EXISTING MISSION

Military Construction Program

11 September 200411

• Design-Build drives down change orders & claims and enables/leverages innovation and cost savings initiatives by our D/B contractors

• Best Value Source Selection incentivizes innovative proposals and reduces cost/construction durations

• Changes for our ROICC organizations– Engineering Techs - increased focus on Quality Assurance– Expect top-notch Quality Control from you

• Will not tolerate poor safety performance– Past performance evaluated in consideration of contract award

Special Items of Interest

12 September 200412

Estimated $ Value

NAVFAC NAVFAC AtlanticAtlantic

NAVFAC NAVFAC PacificPacific

Southwest Southwest DivisionDivision

Southern Southern DivisionDivision

Total Design Build

TotalDesign Build

TotalDesign Build

TotalDesign Build

FY 2004FY 2004

Less than $5 M 9 5 1 1 5 4 5 5

$5 M - $10 M 3 2 2 1 6 4 5 4

Greater than $10 M 18 11 1 0 14 12 5 5

FY 2005FY 2005

Less than $5 M 9 5 0 0 1 1 1 1

$5 M - $10 M 2 2 0 0 3 1 1 1

Greater than $10 M 16 7 3 3 7 6 4 4

MILCON ProgramNumber of Projects in FY 2004 and FY 2005

13 September 200413

220

240

260

280

300

320

FY99 FY00 FY01 FY02 FY03 FY04 FY05

ER,N POR

ER

N (

$M)

220

240

260

280

300

320

FY99 FY00 FY01 FY02 FY03 FY04 FY05

ER,N POR

ER

N (

$M)

Business Efficiencies/Acceptable Risk• Cost to Complete for Cleanup at Active Bases is $3 Billion. Remedy in Place at all sites by 2014.

• Significant opportunity exists in areas of Long Term operations and maintenance for Remedies in place. We want your ideas on how to be more cost effective in this area.

• Our acquisition strategy will be focused on performance based contracts and a larger percentage will be fixed price.

Project Work Projections

Environmental Restoration, Navy(ER,N) Program

14 September 200414

406080

100120140160180

FY04 FY05

ATFP POR

AT

FP

OP

N P

rog

ram

($M

)

406080

100120140160180

FY04 FY05

ATFP POR

AT

FP

OP

N P

rog

ram

($M

)

Goals- new program• Quickly shifting from Risk-Adverse to Risk-based strategy

• Invest in capabilities with higher risk reduction

• Leverage industry developments and NAS North Island test-bed operations

• Leverage joint DoD applications

Project Work Projections

ATFP Program

15 September 200415

900

950

1,000

1,050

1,100

1,150

1,200

FY00 FY01 FY02 FY03 FY04 FY05

FSC FY-04 POR

FS

C P

rog

ram

($M

)

900

950

1,000

1,050

1,100

1,150

1,200

FY00 FY01 FY02 FY03 FY04 FY05

FSC FY-04 POR

FS

C P

rog

ram

($M

)

Business Efficiencies

• Regional acquisitions, larger and fewer contracts

• Standardization of “performance-based” contract templates, linked to service levels

• Direct electronic ordering

Project Work Projections

Facility Support Contracts Program

16 September 200416

• Training – Classroom & online

• Unified Facilities Guide Specifications

• Unified Facilities Criteria - Adding SD requirements/language

• Data Collection

- Develop case study template

- Metering and LEED metrics of projects

• Teamed with other Government agencies and private industry to develop “Whole Building Design Guide”

URL: www.wbdg.org

Sustainable Development FY04 Program Initiatives

17 September 200417

NAVFAC’s transformation is a bold global reshaping to improve our effectiveness and efficiency, significantly reduce costs, and provide our Clients the best products and services.

Transformation – Bottom Line

18 September 200418

• Enterprise-wide business practices across NAVFAC• Eliminated duplication/redundancy• Easier for you to get the assistance and answers you need whenever and wherever you work with NAVFAC

• Optimize technology to leverage our people, our processes, and your capabilities

Transformation – What does it mean to You

19 September 200419

• Enabled us to sharpen our focus on best value, cradle-to-grave acquisition/engineering– Safety– Superior quality– Responsive/Speed of project completion– Continuous cost reduction– Sustainable development– Commissioning– Timely close-out– Genuine partnering

Transformation – What does it mean to You (continued)

20 September 200420

Partnership

RIGHT FORCE----RIGHT READINESS----RIGHT COST

– Innovative

– Ever Faster

– Continuous Cost Reduction

– Fleet Focused

– Surge Enabler

– Interdependent Global Team

Together, committed to become the best value provider of Facilities Engineering, Construction, Maintenance & Acquisition

Counting on your Help, Talent, and Partnership

Questions