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Our Topics Today:

Trends and Tips for Environmental Work in the Federal Marketplace Presented by: Robert M. Beinstein, P.E. Presented to: Board of Directors Annual Retreat Environmental Business Council of New England September 11, 2005. Our Topics Today:. Introduction Trends in Federal Business Opportunities

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Our Topics Today:

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  1. Trends and Tips for Environmental Work in the Federal MarketplacePresented by:Robert M. Beinstein, P.E. Presented to:Board of Directors Annual RetreatEnvironmental Business Council of New England September 11, 2005

  2. Our Topics Today: • Introduction • Trends in Federal Business Opportunities • What does this mean in New England? • Sources of Additional Information • Questions and Discussion

  3. Introduction to CH2M HILL • Founded in Oregon, finally got to the East Coast • Full-service program management, engineering, construction, and operations • 59 years in business • 100 percent employee owned • 200 offices worldwide • 15,000+ professional staff • $3.1 billion in revenue (2004) • I love to talk about the firm. See me after…

  4. Introduction to Bob • Prime example of a life lived backward • College dropout in 1976, took job in local nuclear power plant • 15 year career, ending with environmental radiological work • Hit 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!

  5. Market Outlook: DOD • Global War on Terror (GWOT): changing the face of DOD marketplace • Funding 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 CONUS • Rapid deployment teams (BCTs) are the objective • Increase of multiple award competitive Task Order contracts • They want your price to be competed and accountable

  6. DoD Outlook (cont’d) • Trending towards performance based or fixed price contracts • Customer flexibility in selecting acquisition agents • Cross-service is common • Continued and increasing pressure for small business set asides • This is BIG • Shift to D/B • Still has resistance internally • Continued focus on sustainability • By Executive Order

  7. 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

  8. 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

  9. Trends in Federal Business • Increased emphasis on technology • Increasing SB contracting goals with new requirements (i.e. SDVOSB, etc.) • PRICE and cost competitiveness are BIG drivers • Requires greater focus on lower costs and best-value practices • Clients expect flexibility and speed • Sometimes 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

  10. 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

  11. Federal Outlook in New England • Ongoing programs dominate for now • New 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

  12. New England Outlook (cont’d) • DoD Transformation • BCT 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 Security • Money funnels through the state • Help clients get grants to support projects

  13. What’s It All Mean? • Look for opportunities in new emerging areas, i.e., Homeland Security, DoD Transformation • Seek out complementary business partners • Provide overall solutions in your team • Be able to address SB requirements • Provide value-added services, fast turn-around, flexibility • Pay attention to price, value in competition • Attend Federal briefings where spending plans are discussed • Know your clients; do your homework. Study the need, develop relationships to succeed.

  14. 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

  15. Upcoming Conferences • Federal 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

  16. 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

  17. Thanks for your time! Comments? Questions?

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