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

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Sources Sought from the Department of the Army, for work in Osan Air Base, South Korea. Due Nov 17, 2026, 2:00 PM (UTC+9), 21 days left.

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Solicitation numberW912UM27S0TA1
AgencyDepartment of the Army
OfficeW2SN Endist Far East
Notice typeSources Sought
Set-asideNone
Trade (NAICS)Commercial and Institutional Building Construction (236220)
Product or service codeY1AA
Place of performanceOsan Air Base, South Korea
PostedOct 26, 2026
Response deadlineNov 17, 2026, 2:00 PM (UTC+9) (21 days left)
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Description

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 requ

The description continues in the official notice.

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For NAICS 236220, a business counts as small if it has no more than $45.0 million in average annual receipts (SBA size standard). This notice is set aside, so only businesses under that size, or in the named program, can bid. SBA table, current as of Oct 15, 2026.

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