Today BUILDING STRONG. and Taking Care of People! 20 It has been nearly 50 years since a new lock was built at the Soo

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1 Today 20 It has been nearly 50 years since a new lock was built at the Soo

2 Soo Locks Asset Renewal Long-Term Plan Asset Renewal Plan will maximize reliability and reduce risk through 2035 $70.5M funded to date through FY16. (Not all inclusive) New hydraulics, stop logs, utilities. (Complete) Compressed Air System. (Complete) Gate Anchorage Replacement. (FY 16 Award) Mac and Poe Electrical System Replacement. (IP) Remaining key priorities. Poe Miter and Quoin Block Replacement. Poe Lock Gate 1 Replacement. Pier rehabilitation. Funding, $M FY08 FY10 FY12 FY14 FY16 21

3 Major Rehab Report Efforts First step was SQRA (Semi Quantitative Risk Assessment) - Used for portfolio ranking and determination of whether further and more detailed analysis is necessary Conducted Summer 2014 Purpose is to identify Probable Failure Modes that warrant further analysis Four concerns identified: West Center Pier Embedded Anchorages Misoperation of miter gates Gas line leak or break in deep service tunnel

4 2 nd Poe-Sized Lock Authorizations Authorized for construction of a redundant Poe-size lock in WRDA 1986; WRDA 2007: Construction at 100% federal expense Inconsistent with Administration policy due to BCR of 0.73 computed in 2005 Limited Reevaluation Report (LRR) Currently working on Economic Reevaluation Report to recalculate BCR Team includes all three GL Districts, Planning Center of Expertise for Inland Navigation (Huntington) and the Civil Works Cost Engineering MCX (Walla Walla) Expected completion Dec

5 Great Lakes Navigation System Investment Great Lakes Navigation System s Transporting Rates Savings More competitive American steel Lower cost energy Lower cost concrete (construction) $3.6 BILLION/year More competitive Grain for Export Less fuel consumption and greenhouse gas emissions Less congested highways/rails 24

6 Primary System Commodities #1 Iron Ore (in the form of Taconite Pellets from the Lake Superior Basin to Integrated Steel Mills) #2 Western Coal (from Powder River Basin to Great Lake s Power Plants) #3 Grain (From Lake Superior Ports to Global Market) Soo Locks Tonnage #4 Limestone (From Lake Michigan and Huron Quarries) 9% 6% 9% Iron Ore Coal Wheat 18% 58% Limestone Other

7 Importance to U.S. Economy U.S. Auto Industry The auto industry is one of the most important industries in the U.S. economy: Over 7 million private sector jobs supported by auto manufacturers, suppliers and dealers in the United States Every vehicle manufacturer job creates almost 7 other jobs in industries across the economy A typical automobile made in North American contains steel from the 9 Integrated Steel Mills that produce automotive quality steel. Competition and efficiency have spurred just-in-time delivery (minimized inventories) at every stage in the supply chain. Interruptions to any part of the supply chain quickly ripple down to the final product Source: Center for Automotive Research, Jan

8 Integrated Steel Mills 13 of 14 North American Mills are dependent on the Soo Locks for transport from Minnesota and Michigan. 9 of the 14 mills are on the shores of the Great Lakes Likelihood of a primary steel mill being shut down is proportional to its distance from the Great Lakes. Specifically required for production of auto, appliance, construction, farm, and mining equipment, rail car and locomotive industries. Typical Great Lakes mill layout receives taconite by ship; most mills do not have infrastructure to receive taconite by rail.

9 U.S. Iron Ore Mining 10 Mines located in Minnesota and the Upper Peninsula of Michigan provide 100% of U.S. mined taconite pellets Up to 93% of the U.S. mined taconite traverses the Soo Locks for delivery to steel mills on the lower lakes The flowable characteristic of the pellets is essential to the material handling equipment in the steel mills.

10 Impact to US Economy 29

11 Great Lakes Floating Plant Operations Strike Removal Sounding for, locating, and removing rocks, boulders, and other obstructions from the hard bottom Federal navigations channels (St. Marys, Detroit, and St. Clair Rivers) Structure Repair Makes critical repairs and preventative maintenance to structures and CDFs to prevent complete breach or failure; also frequently called on for emergency response Soo Locks Maintenance Dedicated floating plant for repair and maintenance of the Soo Locks 30

12 Great Lakes Floating Plants Strike Removal - Tug / Crane Barge: Demolen / Veler (Detroit) Whitefish Bay / Nicolet (Soo) Soo Lock Maintenance: Frederick / Harvey (Soo) Paul Bunyan (Soo Gatelifter) Repair Fleet Tug / Crane Barge: Billmaier / Schwartz (Duluth) Kenosha / Manitowoc (Kewaunee) McCauley / Cheraw (Cleveland) 31

13 Stream Restoration and Dam Removal 32

14 Upcoming Work Detroit District NAICS Description of Requirement Anticipated to Advertise Total Contract Value M/D Channels in Lake St Clair, MI 3QFY2017 $1M to $5M SB M/D Detroit River, MI 3QFY2017 $1M to $5M SB M/D Duluth-Superior, MN-WI 3QFY2017 $1M to $5M SB M/D Grand Haven, MI - Outer 2QFY2017 $250K to $500K SB M/D Green Bay, WI 3QFY2017 $1M to $5M SB M/D Holland, MI - Outer (With St Joe) 2QFY2017 $500K to $1M SB M/D Keewenaw Waterway, MI 2QFY2017 $500K to $1M SB M/D Saginaw Upper/Bay, MI 3QFY2017 $1M to $5M SB M/D St Joseph, MI (With Holland) 2QFY2017 $500K to $1M SB M/D Sturgeon Bay, WI 2QFY2017 $500K to $1M SB SND & Legacy Act Dredging, Howards Bay, Duluth- Superior Harbor, MN & WI Acquisiti on Plan 4QFY2017 or FY18 $10M to $25M SBSA 33

15 Upcoming Work Detroit District NAICS Description of Requirement Anticipated to Advertise Total Contract Value Acquisition Plan Poe Lock Miter / Quoin Block Repair 3QFY2017 $1M to $5M Unrestricted West Center Pier Repairs, Phase 5 4QFY2017 $1M to $5M SB Galloway Creek Ecosystem Restoration 3QFY2017 $1M to $5M SBSA Shelby Township Picnic Site Stream Restoration 3QFY2017 $250k to $500k Shelby Township Frisbee Site Stream Restoration 3QFY2017 $500k to $1M Ecosystem Restoration at Mouth of the Clinton River 3QFY2017 $1M to $5M SB Sabin Dam Removal and River Restoration 4QFY2017 to FY18 $1M to $5M Unrestricted DLA Standby Generator Replacement 3QFY2017 $1M to $5M Unrestricted Remediation of Contaminated Soils at Muskegon Zephyr Site 3QFY2017 $5M to $10M Unrestricted 34

16 Regional Work NAICS Description of Requirement Coverage Area Anticipated to Advertise Total Contract Value Acquisition Plan ENGINEERING SERVICES/Environmental Engineering Construction Management Services LRL 1QFY2017 WOSB ENGINEERING SERVICES/Environmental Engineering Military Design (Army Reserve) IDIQ LRL 1QFY2017 SBSA; Up to 2 Awards ENGINEERING SERVICES/Environmental Engineering Military Design (Army Reserve) IDIQ LRL 1QFY2017 Unrestricted; Up to 4 Awards ENGINEERING SERVICES/Environmental Engineering Value Engineering IDIQ LRL 1QFY2017 WOSB ENGINEERING SERVICES/Environmental Engineering Value Engineering IDIQ LRL 1QFY2017 SBSA; Up to 2 Awards ENGINEERING SERVICES/Environmental Engineering Military Master Planning IDIQ LRL 1QFY2017 SBSA; Up to 2 Awards ENGINEERING SERVICES/Environmental Engineering Military Master Planning IDIQ LRL 1QFY2017 Unrestricted; up to 3 Awards 35

17 Key Takeaways Top 5 NAICS Codes for fiscal years 2016 & Other Heavy and Civil Engineering Construction Engineering Services Surveying and Mapping (except Geophysical) Services Environmental Consulting Services Construction, Mining and Forestry Machinery and Equipment Rental and Leasing To look for Detroit District contract opportunities, and to respond to sources sought, please visit and search using the DoDAAC: W911XK Detroit District Points of Contact Contracting Chief/ Contracting Officer: Robert Austin, , Robert.W.Austin@usace.army.mil Contracting Officer: Carlette Williams, , Carlette.L.Williams@usace.army.mil Deputy for Small Business: Bonita Carroll, , Bonita.M.Carroll@usace.army.mil Assistant Director of Small Business: Joe Hastings, , F.Joe.Hastings@usace.army.mil 36

18 Questions 7 February Detroit District Open House 37

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20 Sheet Piling Location 1600 From Nose Pier