Trends and Tips for Environmental Work in the Federal Marketplace

Presented by:Robert M. Beinstein, P.E.

Presented to:

Board of Directors Annual RetreatEnvironmental Business Council of New England

September 11, 2005

Our Topics Today:

IntroductionTrends in Federal Business Opportunities

What does this mean in New England?Sources of Additional InformationQuestions and Discussion

Introduction to CH2M HILL

Founded in Oregon, finally got to the East Coast

Full-service program management, engineering, construction, and operations

59 years in business100 percent employee owned 200 offices worldwide15,000+ professional staff$3.1 billion in revenue (2004)I love to talk about the firm. See me after…

Introduction to Bob

Prime example of a life lived backwardCollege dropout in 1976, took job in local nuclear power

plant15 year career, ending with environmental radiological

workHit the ceiling, returned to school in 1996

Graduated from UCONN in 1999

PM and Program Manager with 8(a) radiological engineering shop, serving Federal Market

Came to CH2M HILL in 2004 Federal Client Service Manager and Business Development Lead

for the Northeast Region

Ardent Community Volunteer (Habitat, Odyssey of the Mind, Soccer Coach, etc.) Never happy unless I’m overcommitted!

Market Outlook: DOD

Global War on Terror (GWOT): changing the face of DOD marketplaceFunding diverted from environmental

Army and Marines gaining funding at expense of Navy and Air Force

Base Realignment and Closure (BRAC) Increased joint basing and operations consolidation

Redeployment in Europe and the Pacific rim and back to CONUSRapid deployment teams (BCTs) are the objective

Increase of multiple award competitive Task Order contractsThey want your price to be competed and accountable

DoD Outlook (cont’d)

Trending towards performance based or fixed price contracts

Customer flexibility in selecting acquisition agentsCross-service is common

Continued and increasing pressure for small business set asidesThis is BIG

Shift to D/BStill has resistance internally

Continued focus on sustainabilityBy Executive Order

Market Outlook: Department of Energy

Environmental Management (EM) Cleanup budget declining over next five years

Target Cost/Incentive Fee is the contracting model

National Nuclear Security Agency (NNSA) Weapons programs, infrastructure, D&D budgets increasing

Office of Science (SC) Budget stable over next five years

Others (Nuclear Energy, Office of Legacy Management, OCRWM, etc.) Budgets uncertain

May be some opportunities for technological innovation and political engineering

Market Outlook: Department of Homeland Security Established in 2002

Hasn’t finished absorbing or coordinating the 22 agencies/groups that were combined

Umbrella agency includes

Many sub-agencies are without permanent appointees in decision-making roles

High number of staff on TDY from other agencies

Largest single buyer of security services in the world $8 billion contracted in 2005 – $20 billion projected in 2010

Largest areas of contracting are services and technologies

Greatest contracting opportunities are in: Systems development/deployment/integration

Emergency preparedness

National exercise implementation

Funding tends to go through states

US Coast Guard

FEMA

TSA

Customs and Border Protection

US Secret Service

Immigration and Customs Enforcement

Federal Law Enforcement Training Center

DHS Directorates

Intelligence

Law enforcement

Emergency response

Aviation/port security

Borders and immigration

Communications

Trends in Federal BusinessIncreased emphasis on technology

Increasing SB contracting goals with new requirements (i.e. SDVOSB, etc.)

PRICE and cost competitiveness are BIG driversRequires greater focus on lower costs and best-value

practices

Clients expect flexibility and speedSometimes will trade risk sharing for reward

Agency dependent

Shift in federal funding overseas means an increased emphasis on security, safety, and life support

Transformation to keep up with the world

Issues Facing Federal Clients

GWOT/emerging threats drive DoD’s plans for realignment, base closure and force re-stationing Also draws down enormous amount of funding

Disaster relief funding sure to impact other budgets

Focusing on core missions; outsourcing non-core missions (i.e. base closure remediation, etc.)

Declining environmental budgets, while tackling complex challenges

Increasing investment in facilities and homeland security; decreasing investment in environmental programs

Restructuring and consolidating within DoD (Transformation), DHS Post-Katrina “lessons learned” changes at DHS

Confusion surrounding BRAC and implementation plans

Federal Outlook in New England

Ongoing programs dominate for nowNew Bedford Harbor (USACE)

MMR (AFCEE, AEC, USACE)

Superfund (EPA, USACE)

BRAC?President has sent BRAC Commission’s recommendations

to Congress

New England dodged the bullet, but lost environmental work

Agencies planning how to implement now

Look at growth bases and associated environmental work

Support new facilities work with NEPA, Sustainability

Follow the closures, realignments, and new missions

New England Outlook (cont’d)

DoD TransformationBCT concept: lighter and faster military

Restationing from Europe and Pacific Rim

Brings new facility requirements, with associated environmental work

USACE: Corps 2012

Navy: NAVFAC multi-year transformation

Homeland SecurityMoney funnels through the state

Help clients get grants to support projects

What’s It All Mean?

Look for opportunities in new emerging areas, i.e., Homeland Security, DoD Transformation

Seek out complementary business partnersProvide overall solutions in your teamBe able to address SB requirements

Provide value-added services, fast turn-around, flexibility

Pay attention to price, value in competitionAttend Federal briefings where spending plans are discussed

Know your clients; do your homework. Study the need, develop relationships to succeed.

Sources of Information

FedBizOps: Federal Contracting Opportunities (for all agencies) www.fbo.gov

Army Corps of Engineers Portal to HQ, Division, District websites: www.usace.army.mil

Naval Facilities Engineering Command Portal https://portal.navfac.navy.mil

Air Force Center for Environmental Excellence (AFCEE) www.afcee.brooks.af.mil

BRAC Status, Reports www.defenselink.mil/brac, also www.brac.gov

Army Environmental Center http://AEC.army.mil/usaec

Army Contracting Agency http://aca.saalt.army.mil/ACA

Department of Homeland Security www.dhs.gov/dhspublic/display?theme=37

Upcoming ConferencesFederal Contracting Opportunities (FedConOps):

Sponsored by NJ & NY SAME Posts

Thursday, November 17, 2005

Doubletree Hotel, Elizabeth, NJ (at Newark Airport)

www.same.org/newjersey (not posted yet)

USACE Annual SB Conference Sponsored by USACE and very well attended

December 5-7, 2005

http://posts.same.org/USACE/

Military Construction Transformation Forums Many are already complete

www.hq.usace.army.mil/cepa/releases/milconforum.htm

SAME Regional Training Conference + USACE SB Conference June 26-28, 2006, Boston, MA

www.bostonsame2006.org

My Contact Info:

Robert M. Beinstein

CH2M HILL

25 New Chardon Street

Suite 300

Boston, MA 02114-4770

robert.beinstein@ch2m.com

Direct Phone: (860) 651-0525

Thanks for your time!

Comments? Questions?