Global Transformation of the
Naval Facilities Engineering Command
--Presentation to the Washington SAME DC Post
23 September 2004
RADM Mike Loose
Commander, Naval Facilities Engineering Command &
Chief of Civil Engineers
Today’s Brief
• NAVFAC Overview
• Major program initiatives that may affect you
• Our Partnership Challenges
22
September 2004
Our Business…Facilities Engineering
AT-FP
BRAC
Community/Gov’t
Liaison
AICUZ
Ashore
Range
Mgmt
Planning
• Strategic
• Global
• Contingency
• Regional
Real Estate
Contracting
Energy
Utilities
Contracting
Renewables
NWCF
Mgmt
Disposal
• Demolition
• Excess Facilities
• Outleasing
Financial
Management
CEC Officer/
NAVFAC
SRM
• Acquisition Process
MILCON
• MILCON
Tech Liaison
Contractors, Engrs
Recapitalization
• Restoration
• Modernization
33
Construction
Sustainment
• Operate and Maintain
Facilities
Contracting /
Privatization
Venture Acquisition
Environmental
PPV / EUL / Lease - Construct
Planning, Compliance,
Conservation & Cleanup
September 2004
Structural Alignment
Structural
PRIDU
ADDU
Commander
Navy Installations
CFFC
NAVFAC
NAVSUP
Combine
Commands
COMFISC
FISCs
Regional
Commanders
PWCs
44
PACFLT
EFD
LANT
EFAs
EFD
SOUTH
EFD
SW
EFD
PAC
EFAs
EFAs
OICCs
• Fragmented facilities support to Regional
Commanders
• Split accountability
• Duplication, redundancy, and too much
overhead
September 2004
Structural Alignment
PRIDU
ADDU
Commander
Navy Installations
CFFC
NAVFAC
NAVSUP
NAVFAC
LANT
COMFISC
FISCs
PACFLT
Regional
Commanders
NAVFAC
PAC
FAC Engr
Commands/
Reg Engr
• Established clear accountability to Regional Commanders
• Focused/aligned to drive efficiency, effectiveness, and savings
• Reduce NAVFAC from 25 to 16 commands
55
September 2004
Facilities Engineering Commands
Transformation Timeline
• 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)
EFA = Engineering Field Activity
OICC = Officer in Charge of Construction
66
PWC = Public Works Center
IPT = Integrated Product Team
September 2004
Functional Alignment
“The Ultimate Force-Multiplier”
Business/Support Lines
Commands
NAVFAC HQ
NAVFAC LANT
NAVFAC PAC
Spec. Ctrs.
Cont. Engineering (CE)
Environmental (ENV)
Navy Crane Center
NAVFAC Engineering Service Center
NAVFAC Expeditionary Logistics Center
NAVFAC Far East
NAVFAC Marianas
NAVFAC Hawaii
NAVFAC PAC
NAVFAC Southwest
Cmd Info Officer (CIO)
NAVFAC Northwest
Financial Mgmt (FM)
NAVFAC Europe
Acquisition (ACQ)
NAVFAC Midwest
Horizontal:
• Common Business
Processes
• Workload Analysis
and Shaping
• Metrics
NAVFAC Southeast
Public Works (PW)
NAVFAC Northeast
Capital Improvements (CI)
NAVFAC Washington
Base Development (BD)
NAVFAC Mid-Atlantic
Real Estate (RE)
NAVFAC LANT
Vertical:
• Mission Accountability
• Client Interface for
Workload Execution
• Performance
Assessment
Chief Engineer (CHENG)
Counsel (CNSL)
77
September 2004
NAVFAC FY04 Macro Funding Flow
$7.2B
76%
HQ
$.04 Billion
1%
20%
Construction
FACILITIES
ACQ
$4.9 B
and
$7.8Service
Billion
Contracting
Plng/Design/Const
Public Works
Operations
$0.9 B
3%
PRIVATE INDUSTRY
$6 Billion
84%
88
Seabee
Logistics
Support
$.16 B
September 2004
NAVFAC Products & Services
By Business Line
•
Capital Improvements
•
–CESE Mgt/WHE
–Services
–Utilities/Energy
–Facility Mgt and Engineering Services
–FSC Technical/Program Mgt
–Construction
–Design A&E
–Design In-House
–Specialized Technical Services
–Ocean Engineering
• Environmental
–Environmental Planning/NEPA
–Environmental Compliance & Conservation
–Environmental Restoration
Public Works
•
•
Real Estate
Contingency Engineering
–Contingency Engineering/Mil Ops
• Base Development
–Facility Planning
–Project Development
AT/FP Program
ATFP Products & Services in
Capital Imps, Base Dev, and
Contingency Engineering
99
September 2004
Military Construction Program
$ Billions
2.5
2.0
1.5
COMPLIANCE
QUALITY OF LIFE
OTHER
NEW MISSION
EXISTING
MISSION
1.0
REPLACEMENT/MODERN.
0.5
WATERFRONT/AIRFIELDS
COMBAT TERRORISM
0.0
2000
2001
2002
2003
BACHELOR HOUSING
2004
2005
FISCAL YEAR
Source: President’s Budget, FY05
1010
Program Funding
September 2004
Special Items of Interest
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
1111
September 2004
MILCON Program
Number of Projects in FY 2004 and FY 2005
NAVFAC
Atlantic
NAVFAC
Pacific
Southwest
Division
Southern
Division
Estimated $ Value
Total
Design
Build
Total
Design
Build
1
5
4
5
5
2
1
6
4
5
4
11
1
0
14
12
5
5
9
5
0
0
1
1
1
1
2
2
0
0
3
1
1
1
16
7
3
3
7
6
4
4
Total
Design
Build
Total
Design
Build
Less than $5 M
9
5
1
$5 M - $10 M
3
2
18
Less than $5 M
$5 M - $10 M
FY 2004
Greater than $10 M
FY 2005
Greater than $10 M
1212
September 2004
Environmental Restoration, Navy
(ER,N) Program
320
ER,N POR
ERN ($M)
300
280
260
240
220
FY99
FY00
FY01
FY02
FY03
FY04
FY05
Business Efficiencies/Acceptable Risk
• Cost to Complete for Cleanup at Active Bases is $3 Billion. Remedy in Place
at all sites by 2014.
• Significant opportunity exists in areas of Long Term operations and
maintenance for Remedies in place. We want your ideas on how to be more
cost effective in this area.
• Our acquisition strategy will be focused on performance based contracts and
a larger percentage will be fixed price.
1313
Project Work Projections
September 2004
ATFP OPN Program ($M)
ATFP Program
180
160
140
120
100
80
60
40
ATFP POR
FY04
FY05
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
1414
Project Work Projections
September 2004
FSC Program ($M)
Facility Support Contracts Program
1,200
1,150
1,100
1,050
1,000
950
900
FSC FY-04 POR
FY00
FY01
FY02
FY03
FY04
FY05
Business Efficiencies
• Regional acquisitions, larger and fewer contracts
• Standardization of “performance-based” contract templates, linked
to service levels
• Direct electronic ordering
1515
Project Work Projections
September 2004
Sustainable Development
FY04 Program Initiatives
•
•
•
•
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
1616
September 2004
Transformation – Bottom Line
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.
1717
September 2004
Transformation – What does it mean to You
• 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
1818
September 2004
Transformation – What does it mean to You
(continued)
• Enabled us to sharpen our focus on best value,
cradle-to-grave acquisition/engineering
–
–
–
–
–
–
–
–
1919
Safety
Superior quality
Responsive/Speed of project completion
Continuous cost reduction
Sustainable development
Commissioning
Timely close-out
Genuine partnering
September 2004
Partnership
Together, committed to become the best value provider of Facilities
Engineering, Construction, Maintenance & Acquisition
– Fleet Focused
– Surge Enabler
– Interdependent Global
Team
– Innovative
– Ever Faster
– Continuous Cost
Reduction
Counting on your Help,
Talent, and Partnership
RIGHT FORCE----RIGHT READINESS----RIGHT COST
2020
September 2004
Questions