Military construction (MILCON) represents a substantial and stable segment of federal construction spending. Projects for the Army Corps of Engineers (USACE), Naval Facilities Engineering Systems Command (NAVFAC), and Air Force Civil Engineer Center (AFCEC) offer significant opportunities for qualified contractors willing to navigate the unique requirements of defense construction.
Understanding Military Construction
MILCON encompasses construction for all Department of Defense branches.
Project Categories
Military construction by type:
- Administrative and headquarters buildings
- Barracks and family housing
- Training facilities
- Medical facilities
- Maintenance and repair facilities
- Infrastructure and utilities
- Specialized mission facilities
Contracting Agencies
Primary DoD construction agencies:
| Agency | Branch | Focus Areas | |--------|--------|-------------| | USACE | Army | Army installations, civil works | | NAVFAC | Navy/Marines | Naval stations, Marine bases | | AFCEC | Air Force | Air Force bases |
Each agency has distinct procurement procedures and contract types.
Funding Sources
MILCON appropriations:
- Military Construction appropriations (new construction)
- Operations and Maintenance (O&M) - repairs under $1M
- Unspecified Minor Construction (UMC)
- Defense Health Program
- NATO Infrastructure
Finding Military Construction Opportunities
Identifying opportunities requires monitoring multiple sources.
SAM.gov
System for Award Management:
- Primary source for federal opportunities
- Required registration for all federal contracts
- Search by NAICS codes and keywords
- Set-aside designations visible
- Contract award history
Agency-Specific Portals
USACE Solicitations:
- USACE acquisition portals by district
- Projnet for project information
- USACE BidExpress for some projects
NAVFAC:
- NAVFAC e-commerce website
- Regional acquisition commands
- NAVFAC Atlantic, Pacific, etc.
Air Force:
- Air Force contracting opportunities
- Base-level contracting offices
NAICS Codes for MILCON
Common NAICS codes for military construction:
- 236220 - Commercial building construction
- 237310 - Highway and street construction
- 237110 - Water and sewer construction
- 238 series - Specialty trades
Security Requirements
Working on military installations requires security compliance.
Background Investigation Requirements
Access levels:
- Installation access (basic background check)
- Controlled access (more extensive)
- SECRET clearance (sensitive projects)
- TOP SECRET (highly sensitive)
Investigation timelines:
- Basic access: 2-4 weeks
- SECRET clearance: 3-12 months
- TOP SECRET: 12-18+ months
DBIDS (Defense Biometric Identification System)
Common access card procedures:
- Background check submission
- Biometric enrollment
- Badge issuance
- Access to specific installations
- Periodic re-verification
Foreign Ownership Restrictions
FOCI (Foreign Ownership, Control, or Influence):
- Disclosure requirements
- May limit contract eligibility
- Mitigation agreements possible
- CFIUS review for acquisitions
Contract Types in Military Construction
DoD uses various contract types.
Firm Fixed Price (FFP)
Most common for MILCON:
- Price set at contract award
- Contractor assumes cost risk
- Ceiling price established
- Clear scope requirements
- Most competitive bidding
Design-Build
Increasingly popular:
- Combined design and construction
- Two-phase selection common
- Technical/price tradeoff
- Past performance weighted
- Best value determination
Multiple Award Construction Contracts (MACC)
Task order contracts:
- Prequalified contractor pool
- Individual task orders competed
- Simplified procurement process
- Ongoing relationship with agency
- Volume opportunities
Job Order Contracts (JOC)
For smaller projects:
- Pre-priced task catalog
- Indefinite delivery/indefinite quantity
- Coefficient-based pricing
- Quick task execution
- Ongoing work opportunities
Bidding Procedures
Military construction procurement follows federal acquisition regulations.
Solicitation Review
Key documents to analyze:
- Request for Proposal (RFP) or Invitation for Bid (IFB)
- Statement of Work (SOW)
- Specifications (UFGS - Unified Facilities Guide Specifications)
- Drawings
- Special contract requirements
- Wage determination
Unified Facilities Guide Specifications
UFGS considerations:
- DoD-standard specifications
- More stringent than commercial
- Specific submittal requirements
- Quality control requirements
- Security specification sections
Price Proposal Format
Typical requirements:
- Schedule of Prices (line-item breakdown)
- Bid schedules for all CLINs
- Option pricing if applicable
- Subcontractor pricing details
- Equipment and material breakdown
Compliance Requirements
Federal and DoD-specific compliance requirements apply.
Federal Acquisition Regulation (FAR)
Key FAR requirements:
- Cost accounting standards
- Truth in Negotiations Act (TINA)
- Buy American Act compliance
- Small business subcontracting
- Equal employment opportunity
Defense Federal Acquisition Regulation Supplement (DFARS)
DoD-specific requirements:
- Berry Amendment (domestic textiles)
- Specialty metals restrictions
- Cybersecurity requirements
- Electronic submission requirements
- Cost or pricing data
Labor Standards
Prevailing wage requirements:
- Davis-Bacon Act applies
- DoD wage determination
- Certified payroll requirements
- Fringe benefit compliance
- Apprenticeship ratios
Small Business Programs
DoD has extensive small business goals.
Set-Aside Categories
Small business designations:
- Small Business (SB)
- Small Disadvantaged Business (SDB)
- Women-Owned Small Business (WOSB)
- HUBZone
- Service-Disabled Veteran-Owned (SDVOSB)
- 8(a) Business Development
Subcontracting Requirements
Large contractors must submit subcontracting plans:
- Small business goals by category
- Good faith effort requirements
- Reporting requirements
- Liquidated damages for non-compliance
Mentor-Protégé Programs
DoD Mentor-Protégé opportunities:
- Large contractors mentor small business
- Credit toward subcontracting goals
- Joint venture opportunities
- Developmental assistance
Estimating Military Projects
Military projects have unique estimating considerations.
Security Costs
Factor security into estimates:
- Badge and clearance costs
- Escort requirements
- Security training
- Access delay time
- Secure storage requirements
Productivity Factors
Typical adjustments:
- Installation access delays: 5-10%
- Security restrictions: 5-15%
- Operational constraints: 10-20%
- Remote locations: 10-25%
Remote Location Considerations
Many military installations are in remote areas:
- Travel and per diem costs
- Limited local labor
- Material delivery challenges
- Temporary housing
- Support services
Quality Control Requirements
DoD projects have rigorous QC requirements.
Contractor Quality Control (CQC)
Three-phase inspection system:
- Preparatory phase (before work begins)
- Initial phase (start of each work activity)
- Follow-up phase (ongoing verification)
CQC plan requirements:
- Full-time CQC manager
- Inspection procedures
- Testing plan
- Documentation requirements
- Deficiency correction
Government Quality Assurance
- Government inspectors verify CQC
- Random sampling and testing
- Record review
- Pre-final and final inspections
- Acceptance documentation
Submittals and Documentation
Extensive documentation requirements apply.
Submittal Process
UFGS submittal requirements:
- Detailed submittal register
- Government approval timeline
- Resubmittal procedures
- As-built documentation
- O&M manuals
Progress Documentation
Required reporting:
- Daily quality control reports
- Certified payroll submissions
- Progress photographs
- Schedule updates
- Safety reports
Building Military Market Presence
Long-term success requires strategic approach.
Getting Started
Entry strategies:
- Start with smaller projects
- Pursue set-aside contracts
- Subcontract to experienced GCs
- Build security clearance base
- Develop agency relationships
MACC and JOC Qualification
Position for task order contracts:
- Strong past performance record
- Financial capacity
- Key personnel with experience
- Technical capabilities
- Geographic presence
Relationship Development
Build connections with:
- Contracting officers
- Project managers
- Engineering staff
- Small business specialists
- Prime contractors (for sub opportunities)
Common Challenges and Solutions
Military construction presents unique challenges.
Security Processing Delays
Mitigation strategies:
- Start clearance process early
- Maintain cleared workforce
- Plan for turnover
- Use cleared subcontractors
- Factor delays into schedule
Specification Complexity
Managing UFGS requirements:
- Review specifications thoroughly
- Clarify ambiguities via RFI
- Plan submittal schedule carefully
- Understand approval timelines
- Budget for required testing
Remote Location Projects
Addressing remote site challenges:
- Investigate local resources early
- Plan workforce logistics
- Secure material supply chains
- Arrange temporary facilities
- Account for travel time
Technology and Cybersecurity
Modern military construction includes technology requirements.
Cybersecurity Requirements
DFARS cybersecurity clauses:
- NIST SP 800-171 compliance
- Controlled Unclassified Information (CUI) handling
- Incident reporting requirements
- Supply chain security
- System security plans
Building Information Modeling
BIM increasingly required:
- Model development requirements
- Government data deliverables
- Interoperability standards
- Security for digital files
- Coordination requirements
ConstructionBids.ai tracks military construction opportunities from USACE, NAVFAC, and Air Force. Get alerts for MILCON projects, MACCs, and JOC opportunities matching your capabilities and clearance levels.
