Headquarters U.S. Air Force
Integrity - Service - Excellence
Base Conversion Directorate
Presented by
Lt. Col. Daniel Welch
AFCEE/BC
19 Aug 2004
Overview
Base Conversion Directorate
 Performance Based Cleanup (PBC)
Acquisition Strategy for the Air Force Real
Property Agency (AFRPA)

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Base Conversion Directorate
(AFCEE/BC)
LtCol Daniel L. Welch
Director
Maj William J. Gooden
Technical Assistant
Geri Lira
Directorate Secretary
West Division
George Gauger
East Division
Dennis Lundquist
Division Chief
Staff of 14
Division Chief
Staff of 13
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AFCEE Piece of the AF BRAC Pie
$45.6
AFCEE
Others
$130.0
Dollars in Millions
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Services

Environmental Restoration at Closure Bases for Air
Force Real Property Agency (AFRPA)

Cradle-to-Grave Environmental Restoration Services

Assistance in Project & Program Definition and
Development

Environmental Project Execution
 Site
Investigations/Studies
 Site Remediation
 Long Term Monitoring
 Remedial Process Optimization
 Quality Control/Quality Assurance
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Services (continued)

Participation in Regulatory / Community Interface

Performance Based Contracting

Evaluate and Educate on Innovative Technologies
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Contract Capabilities

Environmental A&E Contracts (4P-AE)

Worldwide Environmental Restoration and
Construction (WERC)

Support Contractors

Global Engineering Integration and Technical
Assistance (GEITA)
 Independent Systems Engineering & Acquisition
Support (ISE&AS)
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Performance Based Cleanup (PBC)
Acquisition Strategy for AFRPA
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PBC Objectives and Goal

Objectives






Protection of Human Health and the Environment
Accelerates closeout and/or reduces lifecycle costs
Shift risk from the Government to private sector
Harnesses innovations/creativity of the private
sector
Includes a full suite of contract tools
Goal is to match the “problem” with the best
solution
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What is PBC?

Performance Based Contracting (PBC) –

Focus on results, rather than methods
 Set measurable performance objectives
 Set quality standards
 Identify incentives, when appropriate

PBCs vary depending on project objectives and risk,
e.g.

Guaranteed Fixed Price Remediation (includes
insurance)
 Firm Fixed Price (without insurance)
 Firm Fixed Price with incentives
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Developing an AFCEE Strategy

Initial Strategy:
Categorize sites using decision logic framework
 Embraces lessons learned from Army & private sector PBC efforts

Active IRP Site
Evaluation
Will site
achieve SC
within 9 yrs?
No
Will site
No
achieve RC
within 5-9 yrs?
Active
remediation,
alternate
technology?
Yes
GFPR
Candidate
No
Yes
FFP PBC
Candidate
Yes
Optimization
FFP & FFP w/
Incentives
PBC
Candidate
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PBC Assumptions



Contracts will be competitively solicited among WERC
contractors
Period of Performance will be up to 5 years, plus 4
option years
Activities will be funded during first 5 years only




Profile for annual funding
Fund options in year five
Target: one contract per base, group bases where
appropriate
Exclude chemical warfare materials, radiological,
munitions/explosives handling from scope
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Site Closeout Category

Site closure scheduled within the next 9 years*, in
general:

Lock-in planned closure date
 Less risk, insurance not recommended
 Recommended Firm Fixed Price PBC

Considerations:

Ensure contractors meet or beat site closure milestones
 Cost savings through competition and economies of
scale
*Based on 5-year PoP and 4 option years; subject to change
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Response Complete Category
 Response complete scheduled in the next 9 years*:
 Lock-in response complete by planned date – no
slippage!
 Increased contractor risk
 Recommended approach:
 Firm Fixed Price to achieve response complete
milestones
 Incentives to achieve accelerated site closure
 Considerations:
 Savings resulting from competition and innovation
 Opportunity for reduced schedules
 Consider incentives for accelerated response complete
*Based on 5-year PoP and 4 option years; subject to change
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Alternate Technology Category

Active remediation with response complete >10 years and
alternative technology available

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Recommended approach

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Performance objectives tailored to site
Higher contractor risk
Example: Pump and treat
Guaranteed Fixed Price Remediation PBC
Use pre-solicitation process to determine if alternative
technology exists
Consider shared savings for cost reduction
Considerations:




Affords greatest opportunity for significant lifecycle savings
Cost/ benefit analysis to evaluate funding profile
Increased regulator interaction/negotiation
High early investment requirements – budget limitations
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Optimization Category

If site closure or response complete >10 years and
alternative technology not available

Performance objective is reduced costs
 Low contractor risk
 Examples: Landfill cap; LTM

Recommended approach

Firm Fixed Price with incentives to reduce lifecycle
costs
 Share cost savings

Considerations:

No special considerations
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Bases for PBC

AFRPA Div A

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
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Griffiss
Grissom
Homestead
Loring
Group
Pease
Plattsburg
AFRPA Div B



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Gentile
Newark
Rickenbacker
KI Sawyer
Wurtsmith
AFRPA Div D
 Castle
 George
 March
 Mather
 Norton
Ohio Group
Michigan Group
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Implementation

Total PBC Initiative Contract Value

First Year Total $20-30 Million for 16 Bases
 Total Contract Value Up To $200 Million





Verify Site and Funding Data
Fine Tune Strategy to Site/Base
Develop briefing/education materials for all the players
Form implementation teams (e.g., AFRPA, BEC, AFCEE,
regulator, LRA)
Develop Statement of Objectives (SOO)
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Implementation

Contracting schedule – 5 1/2 months to contract award from
scoping effort






Ohio Bases Expedited as Prototype
PBC Phasing



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Pre-Solicitation Package (Draft SOO)
On-Site and Regulator Meetings
Shorten timeframe where feasible
Contractor selection: best value evaluation
Phase 1: Gentile, Newark & Rickenbacker (Ohio Group);
Grissom; Homestead; Mather; and Castle
Phase 2: Loring & Pease; K.I Sawyer & Wurtsmith; Plattsburgh,
Norton; and George
Phase 3: March
Develop/execute contract transition plans
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ISSUES



Contractor/regulator/Air Force interface
Contract oversight
FY05 budget limitations
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