Sources Sought/Market Intelligence Notice: Selfridge KC-46 Dual Bay Hangar Complex – Use of Construction Management at Risk using Other Transaction Authority (OTA)

REQUEST FOR INFORMATION (RFI) / MARKET INTELLIGENCE NOTICE

This is a Request for Information (RFI) for market intelligence and for informational purposes only. This announcement does not constitute a Solicitation or a Request for Proposal (RFP), and no solicitation is currently available. Participation in this RFI is strictly voluntary. The Government will not be obligated to award any agreement or contract because of this RFI, nor will it reimburse respondents for any costs associated with the preparation or submission of information. Submitting a response will not affect a firm’s ability to submit a proposal should formal solicitation be issued in the future.

NAICS Code: 236220 – Commercial and Institutional Building Construction
(Note: While Other Transaction Authority is not subject to FAR-based small business regulations, this NAICS code is provided for market research to help the Government understand the size and demographics of the interested industrial base.)

Small Business Size Standard: $45 Million

PROJECT OVERVIEW
The U.S. Army Corps of Engineers (USACE), Louisville District, has a requirement for the design and construction of Dual Bay (Fuel Cell and General Maintenance) Hangar for the KC-46 Pegasus aircraft at Selfridge ANG, MI. The scope of work consists of furnishing all necessary equipment, materials, labor, supervision, quality control, and supplies to deliver a fully functional maintenance hangar including required shops as indicated below:

• General Purpose Shop
• Corrosion Control Shop
• Fuel Cell Shop:
• Weapons System Maintenance
• Engine Shop
• Avionics Shop
• Non-Destructive Inspection (NDI)

Estimated Acquisition Magnitude: $188,700,000

PLANNED ACQUISITION STRATEGIES UNDER EVALUATION: Construction Management at Risk (CM@Risk) via Other Transaction Authority (OTA).

The Louisville District is evaluating a Construction Management at Risk (CM@Risk) strategy utilizing an Other Transaction (OT) Agreement under the authority of 10 U.S.C. § 2808a. This authority is intended for military construction projects that involve testing and experimentation associated with new and emergent construction technologies to achieve potential benefits such as enhanced mission resilience, improved installation support, or cost and schedule reduction.  

Currently, the Government has advanced the design to 35% and has the capability to progress to a full design. Therefore, the Government is utilizing this RFI to assess industry capability, interest, and the advantages of utilizing Construction Management at Risk (CM@Risk) utilizing an Other Transaction (OT) Agreement under the authority of 10 U.S.C. § 2808a.

The CM@Risk Course of Action (10 U.S.C. § 2808a):

This path allows USACE to execute a construction project where the design is brought at near 65% completion.

Phase 1 Preconstruction: The builder is hired during Phase 1 to act as an expert consultant, helping the Designer of Record (DOR) push the design from 65% to 100% using real-time market data and MII (MCACES 2nd Generation) cost comparisons.

Phase 2 Construction: Once the design hits 100% and the MII estimate validates the open-book pricing, the agreement transitions to Phase 2, where the builder goes "At-Risk" to construct the facility under a Guaranteed Maximum Price (GMP). The DOR retains design liability, but the contractor drives constructability and assumes responsibility for layout, schedule, and trade coordination.

The CM@Risk Pricing Structure:

Preconstruction Services Fee: A small, fixed-price or time-and-materials amount paid to the contractor strictly to fund their time spent helping the Architect Engineer (A/E) finalize the 65% design into a 100% design.

The Target Fee: The contractor’s transparent profit margin for managing the actual construction, bid competitively upfront.

The GMP: The absolute ceiling for the construction phase (Validated Direct Costs + Target Fee + Shared Contingency).

PHASED EXECUTION PLAN

Phase 1: Preconstruction Services Agreement (CM@Risk Advisory)

• Solicitation (White Papers): The Solicitation would likely include the 35% design. The Deliverable is anticipated to be a concise 5-10 page White Paper. Evaluation Criteria will likely include Corporate capability and experience with collaborative project delivery methods ( including CM@Risk, Progressive Design-Build (PDB) and/or Design-Build to Budget (DBtB)) under an OT framework; preconstruction approach (how the firm plans to collaborate with the Government's A/E to close the remaining 65% design gap, identify value-engineering opportunities, and mitigate supply-chain risks); proposed Target Fee (for construction) and Preconstruction Services Fee.
• The Pitch Meeting (Oral Presentations): A 90-minute pitch where the contractor must bring their Project Manager, Site Superintendent, and their Preconstruction Manager. The Government team assesses how well the contractor's team will integrate with the A/E during the critical final design push. The OT is initially awarded and funded only for the Preconstruction Services Fee.
• Design Finalization (Bridging the 35% Gap): The contractor’s Preconstruction team sits with the Government and the DOR. Because the design is not locked, they can actively change it. They perform value engineering, finalize equipment selections, and ensure the drawings are 100% constructible.
• Open Book Pricing vs. MII: As the design reaches 100%, the contractor conducts open-book market outreach. The Government and contractor review actual sub-bids together. USACE cost estimators finalize the Independent Government Estimate (IGE) using the MII software to validate costs and establish the GMP base.

Phase 2: Construction Execution Agreement (Going "At-Risk")

• Execution: The Agreements Officer (AO) executes a bilateral modification to the OT Agreement, incorporating the GMP and funding the physical construction.
• Risk Allocation: Under CM@Risk, the contractor is now "At-Risk." While the DOR retains design liability, the contractor collaborates to identify constructability conflicts during Phase 1. During Phase 2, while the DOR still owns fundamental engineering failures, the contractor loses the ability to claim "defective design" for constructability issues, material delays, or coordination errors, because they were explicitly paid to help finalize those exact decisions using market and MII data during Phase 1.

INFORMATION REQUESTED

Interested parties are requested to respond to the following questions to help shape the final acquisition strategy:

Company Profile:

Q1. Firm Name

Q2. Address

Q3. Point of Contact (Name, Title)

Q4. Phone Number

Q5. Email Address

Q6. Unique Entity ID

Q7. CAGE code

Q8. Socioeconomic Status (Other Than Small, Small, 8(a), SDVOSB, etc.)

Q9. Participating Role (Prime Contractor, Subcontractor, Design Firm, Other)

Other Transaction Authority (OTA) & Statutory Compliance:

Q10. Innovative Technologies: The authority for this OTA (10 U.S.C. § 2808a) is focused on prototyping with new or emergent construction technologies. Describe any innovative materials, methods, or technologies your firm could propose for a project of this scale that could lead to cost savings, schedule acceleration, or enhanced facility performance and resilience.

Q11. OTA Experience: Describe your firm's previous experience (if any) executing prototype projects under an OTA.

Q12. Barriers to Innovation: What commercial or Government-imposed barriers currently make it difficult to propose or implement innovative construction technologies on traditional military construction projects? How could the flexibility of an OTA help overcome these barriers?

Q13. Custom Commercial Terms & Dispute Resolution: To optimize the flexibilities of the Other Transaction Authority (OTA) framework, what specific commercial terms (e.g., tailored dispute resolution/rapid escalation mechanisms, commercial milestone payment structures, or shared intellectual property rights for innovative methods) would your firm recommend the Government adopt to minimize risk and incentivize your participation?

Q14. What project characteristics make CM@Risk-OTA particularly advantageous or disadvantageous for this requirement?

CM@Risk & Design-Assist Involvement:

Q15. Design Entry Point Suitability (35% vs. 65% vs. 95% Entry): The Government is seeking industry feedback on the optimal design completion stage for onboarding the CM@Risk builder. In your experience, which design entry point—35% (bridging a 65% gap to construction-ready), 65% (bridging a 35% gap), or 95% (bridging a 5% gap)—provides the best value for integrating meaningful constructability, value engineering, and long-lead supply chain mitigation?

Q16. Design Maturity & Early-Builder Benefits: Given the scale of this hangar project ($188.7M), what are the primary benefits of bringing on a CM@Risk builder during the preconstruction phase (e.g., at 35% or 65% design), and how can the Government maximize those benefits?

Q17. Collaborative Framework: What collaborative mechanisms do you recommend the Government implement to rapidly close the design gap and transition to a validated GMP?

Q18. CM@Risk Experience: Describe your experience executing Construction Management at Risk (CM@Risk) or other highly collaborative delivery methods, particularly where you served as an advisor before going "at-risk".

Guaranteed Maximum Price (GMP), Risk Allocation & Compensation:

Q19. Preconstruction Compensation: What specific compensation structures (e.g., fixed stipends, time-and-materials) would best compensate your firm for the pre-construction effort and design-assist phase?

Q20. Open Book Pricing: How do you approach "open-book" pricing and transparency during Phase 1 to build trust and ensure the Government is receiving fair market value before locking in the GMP?

Q21. Early Work Packages (EWPs) & Site Mobilization: A key benefit of onboarding a CM@Risk builder early is the ability to fast-track construction using Early Work Packages (EWPs) (e.g., early site prep, utility relocations, mass grading, foundation packages) before the 100% design and full GMP are finalized. Under what design maturity conditions would your firm recommend executing early packages, and how would you manage active construction while final design is being completed by a separate Designer of Record?

Q22. Long-Lead Items: How do you handle the procurement of long-lead items (e.g., switchgear, specialized fire pumps, large span steel) if they must be ordered prior to the finalization of the 100% design and GMP?

Q23. Phase 1 Off-Ramp Risk: If the Government and the contractor cannot reach an agreement on the final GMP, what specific off-ramp conditions are critical to your firm?

Q24. Risk allocation: Under a CM@Risk model where the Government retains the Designer of Record, how does your firm view the proposed risk allocation regarding constructability and design-defect claims? What risk-sharing or shared-contingency structures do you recommend to optimize pricing?

Industrial Maintenance & Specialized Facility Construction Expertise:

Q25. Describe your firm’s specific experience with large-scale aircraft maintenance hangars, specialized utility shops (corrosion control, fuel cell maintenance, avionics, NDI), and highly specialized fire suppression systems.

Q26. What is the greatest supply chain, scheduling, or technical risks you foresee for a project of this type at Selfridge ANGB, MI, and how would this CM@Risk delivery method help mitigate them?

Teaming & Subcontractor Integration:

Q27. Under a CM@Risk model starting at a 65% design, how and when do you plan to on board your critical subcontractors (e.g., structural steel, MEP, fire protection)?

Q28. Will you compete with these subcontracts openly during Phase 1 to build the open-book GMP, or do you prefer bringing in established partners from day one?

Feedback on the Acquisition Strategy & Alternatives:

Q29. Does the proposed CM@Risk-OTA strategy incentivize your firm to participate? Why or why not?

Q30. Two-Phase Selection Process & Proposal Burden: Does the proposed two-phase selection framework (Phase 1: Concise 5-10 page White Paper; Phase 2: 90-minute Pitch Meeting/Oral Presentation) provide an efficient mechanism for your firm to demonstrate its qualifications and CM@Risk capabilities without creating an undue proposal cost burden? What specific submission requirements, page limits, or response timelines would encourage robust competition from top-tier firms?

Q31. Are there alternative acquisition strategies, phasing approaches, or commercial practices the Government has not considered that would yield a better facility, faster delivery, or lower cost?

Q32. Differentiating Evaluation Criteria: To differentiate high-performing CM@Risk collaborative builders from traditional low-bid general contractors, what evaluation criteria (e.g., past collaborative-delivery/CM@Risk performance, key personnel/superintendent experience, trade-partner/subcontractor open-book engagement strategy, or proposed General Conditions fees) should carry the greatest weight in the Government's evaluation?

Bonding Capability:

Q33. Project Bonding Capacity: Specify your maximum bonding (Single and Aggregate) as a Sole Prime Contractor and/or as a Joint Venture.

Q34. Phased Bonding Approach: Given the distinct phases of the CM@Risk OTA structure, would a phased bonding approach - where your firm is only required to bond the value of the Phase 1 preconstruction services initially, with full construction Performance and Payment bonds deferred until the bilateral execution of Phase 2 (GMP) - effectively mitigate risk and bonding capacity constraints for your firm? Please describe any alternative commercial security structures you recommend.

SUBMISSION INSTRUCTIONS

Submission Requirement: The only authorized transmission method of responses is via filling out the survey form. No other transmission method will be accepted. Please limit your capability statement to the space provided within the form. The Market Survey Response Form can be accessed at https://forms.osi.apps.mil/r/uev3mC68Et or via the QR Code provided in the attachment. 

Please submit your responses by 24 September 2026 at 1100 Eastern Time.

The questionnaire is the Government's primary mechanism for obtaining detailed market intelligence and addresses industry capability, experience, technical capabilities, construction considerations, and recommended OTA and commercial practices.

The Government welcomes candid industry feedback and recommendations regarding commercial practices, agreement terms, project phasing, risk sharing, governance, pricing approaches, and other considerations that could improve successful execution of this project under 10 U.S.C. § 2808a.

Interested firms are encouraged to add themselves to the Interested Vendors List associated with this announcement on SAM.gov to receive future updates.

Note: Do not submit proprietary trade secrets, protected technologies, or classified information in your response.  All feedback received will be handled as public market research to shape the Government's final acquisition approach.