ICD-705 Controlled Spaces Modernization and Sustainment Program - (Progressive Design-build (PDB) Other Transaction Agreement (OTA)

                                                          SOURCES SOUGHT ANNOUNCEMENT

                                                                 AND INDUSTRY DAY NOTICE

                                                           PROGRESSIVE DESIGN-BUILD (PDB)

                                                      OTHER TRANSACTION AGREEMENT (OTA)

                              ICD-705 Controlled Spaces Modernization and Sustainment Program

                                                                   Osan Air Base, Republic of Korea

                                                      U.S. Army Corps of Engineers – Far East District

DISCLAIMER: This Sources Sought is issued solely for market research/intelligence and acquisition planning. It is not a solicitation, Request for Qualifications, or commitment to issue a solicitation or award any agreement or contract. No Statements of Qualifications or proposals are requested. Participation is voluntary; the Government will not reimburse response costs and will not accept unsolicited proposals. Responses will inform acquisition strategy, industry capability assessment, and project delivery options. Responding does not affect eligibility for any future solicitation.

THE OPPORTUNITY

The U.S. Army Corps of Engineers, Far East District (USACE FED) invites industry partners to help shape the acquisition strategy for a high-priority modernization and sustainment program involving ICD-705 controlled spaces at Osan Air Base, Republic of Korea. The Government is evaluating an innovative Progressive Design-Build (PDB) delivery method executed through an Other Transaction Agreement (OTA) under 10 U.S.C. § 2808a.

This approach enables early contractor involvement, collaborative design development, open-book pricing, and flexible risk allocation—advantages particularly valuable for complex, security-sensitive work performed in an active overseas operational environment with unique host-nation and ICD-705 constraints. The Government has not made a final acquisition strategy determination and seeks candid industry input on the benefits, limitations, risks, and commercial terms of a PDB OTA compared with traditional design-bid-build or design-build approaches.

WHY PROGRESSIVE DESIGN-BUILD / OTA?

ICD-705 controlled spaces, collective protection systems, and HVAC modernization on an active air base present technical, security, operational, and logistical complexities that benefit from early industry engagement. A PDB OTA structure may allow:

• Joint refinement of requirements and design while the facility remains operational;
• Early identification and mitigation of long-lead items, host-nation interfaces, and ICD-705 accreditation risks;
• Transparent, open-book cost development leading to a more reliable construction baseline (including potential GMP);
• Flexible commercial terms and governance tailored to the unique constraints of overseas military construction in the Republic of Korea.

The Government is particularly interested in industry’s practical experience with these methods on similar secure or operationally constrained projects, as well as any recommended alternatives that would better achieve mission, schedule, and cost objectives.

PROJECT SCOPE

The program encompasses modernization and sustainment work in two existing facilities at Osan Air Base:

Building A – Collective Protection, HVAC & ICD-705 Modernization

• Replace the existing M49 Collective Protection System (CPS) filter system with a new M98 CPS, including associated blast doors, seals, relief valves, electronic control systems, and other appurtenances, fully coordinated with applicable ICD-705 requirements.
• Replace or modernize principal components of the existing HVAC system to support ICD-705 environmental and security standards.
• Convert approximately 2,610 square feet of existing space to meet applicable ICD-705 requirements.

Building B – ICD-705 Conversion & Facility Sustainment

• Convert approximately 3,700 square feet of existing space to meet applicable ICD-705 requirements.
• Perform sustainment work on approximately 50,000 square feet, including roof repairs and existing office space improvements.
• Repair and/or replace components of the existing fire protection and fire alarm systems; air-handling units (AHUs), air-cooled condensing units (ACCUs), and associated HVAC infrastructure; bathroom fixtures and plumbing; plus associated incidental work required to complete the planned improvements.

Estimated program magnitude: $60–100 million. Construction funding for both facilities is anticipated for obligation in FY27, subject to availability of funds and applicable approvals. This Sources Sought is the Government’s primary tool to assess industry interest, capability, and preferred commercial practices before finalizing the acquisition approach.

ACQUISITION APPROACH UNDER EVALUATION

Industry feedback will help refine potential agreement structure, project phasing, pricing approach, governance, risk allocation, and other commercial terms.

Potential Phase 1 – Design and Preconstruction

The Government and selected contractor would collaborate to refine project requirements, develop the design, conduct constructability reviews, identify long-lead equipment, evaluate phasing and operational constraints, obtain subcontractor input, develop cost estimates, and mitigate technical and execution risks. Feedback is requested on the design maturity, site investigations, pricing information, and agreement terms needed to establish a reliable construction cost and schedule baseline.

Potential Phase 2 – Construction

Following design development and resolution of key technical and commercial risks, the contractor may be asked to propose a construction price, potentially including a Guaranteed Maximum Price (GMP) if appropriate to the final structure. Any transition to construction would be subject to the terms of the resulting agreement, Government acceptance, availability of funds, and required approvals. The Government seeks practical recommendations for off-ramp provisions, design deliverables, compensation, and transition arrangements should the parties be unable to reach agreement on construction pricing or other required terms.

Alternative acquisition strategies that industry believes would better support the program’s security, technical, schedule, cost, and operational requirements are welcome and encouraged.

INDUSTRY DAY

A Virtual Industry Day is to be determined. The SAM.gov posting will be updated with registration instructions and meeting information when available. Interested firms are strongly encouraged to add themselves to the Interested Vendors List associated with this announcement on SAM.gov to receive timely updates, including Industry Day details.

INFORMATION REQUESTED FROM INDUSTRY

Your candid, detailed feedback is critical to shaping a successful acquisition. The Government’s primary mechanism for obtaining market research is the Industry Questionnaire, which addresses capability and capacity, relevant experience, Progressive Design-Build experience, open-book pricing, technical capabilities (ICD-705, CPS, secure facilities), real estate and construction considerations in the Republic of Korea, schedule, security, risk, governance, and recommended commercial practices.

1. Complete the Industry Questionnaire: Access the Questionnaire Here (https://forms.osi.apps.mil/Pages/ResponsePage.aspx?id=unZN_HzxUEy5p48xY9J1gkOXdBFTSSpJlGbZL6EFB8NUN1FSQ0pXMEE3TU05UzlUQ09QNjNMSjNTTyQlQCN0PWcu) or complete the questionnaire attached. 

2. Submit a Capability Statement (not to exceed 12 pages).  Include:

• Company name and address, CAGE code and/or Unique Entity Identifier (UEI) from your SAM.gov registration. Clearly identify if you are a foreign firm, partner, or subsidiary located outside the United States.
• Business size status and any applicable socioeconomic categories under NAICS Code 236220 – Commercial and Institutional Building Construction (small business size standard: $45 million).
• Two completed projects of similar nature and complexity (examples: ICD-705 controlled spaces, collective protection system installation or modernization, secure facility conversion, complex HVAC/CPS upgrades in operational military facilities, or comparable high-security construction). For each project state whether you were Prime, Subcontractor, or partnering Architect-Engineer firm, and provide: start and end dates of construction, project cost, complexity of the work, and any significant challenges (e.g., coordination with multiple partners/agencies, operational constraints, climate, terrain, or host-nation requirements).

The Government especially values recommendations on commercial practices, agreement terms, project phasing, risk sharing, open-book pricing approaches, governance structures, and other considerations that could improve successful execution of this project under 10 U.S.C. § 2808a.

HOW TO RESPOND

Interested firms should complete the Industry Questionnaire and submit any supplemental Capability Statement via email no later than 2:00 p.m. Korea Standard Time (KST), Tuesday, 17 November 2026.

Primary Point of Contact(s):

Eugene A. Gibbs  |  Eugene.A.Gibbs@usace.army.mil

Mike M. Miyagi  |  Michael.M.Miyagi@usace.army.mil

Email subject line: W912UM27S0TA1 / [Your Company Name] Response

Add your firm to the Interested Vendors List on SAM.gov associated with this announcement to ensure you receive all future updates, including Industry Day registration details.