A Q&A with Vaughan Buckley, CEO of Volumetric Building Companies, on landing and executing military construction contracts.
Q: Do you consider this a promising market for modular?
A: We think so. The government pays a 62% premium for on-base housing. Two years ago, the military put out a call for innovators who could do it better. 70 companies responded. We expect to come in well below the announced budget.
At this point, we’ve completed a half-dozen RFPs; this is just the first project to get approved.
Q: We’ve been told that the military is making the process of working with them easier. Is that accurate?
A: 100%. They’re actively looking for new ways of doing business, and they’re doing an incredible job of engaging non-traditional defense contractors. They have moved from FARs to OTAs (see the “Opportunities in Military Construction” article in this issue), which gives them more flexibility in how they make decisions.
Q: Based on your experience, what would you say to a modular builder or manufacturer that wants to seek military contracts?
A: It’s completely different than regular B2B work. The primary difference is that you can do the latter alone — you can submit [a bid] to an owner or GC in a vacuum. For a military project, however, you need a strong team and we’ve teamed up with capable contractors, architects and other manufacturers. RFPs are also more detailed; VBC had 58 team members involved in this bid.
In addition, you need knowledge of the Unified Facilities Criteria, the Department of War’s building code. And you need to consider the fact that work on-site will be regulated by Davis-Bacon and other Acts.
Q: Is there much variation in module design or are they all substantially the same?
A: They’re more than substantially the same; we’ve worked tirelessly to reduce modular types to one. There are no roof, ground floor, left or right, or corner modules. Just one.
Q: Can your suppliers keep up with the increased volume?
A: We’re not worried. We’ve engaged closely with them. We nailed our supply chain before submitting our bid.
Q: Was VBC involved in the design from the beginning?
A: Yes. The prime designer is Gensler. We’ve worked collaboratively with them on many projects. It’s their design and our system.
Q: Given the size and scope of this project, what are your main concerns?
A: Schedule compliance is the biggest one. There are tons of decisions to be made and things to do. Getting them done [right and on time] requires experience and the right team members.
We’ve reduced everything to a universal module. We have two factories that can accommodate the work while still servicing current customers. We’ve solved logistical challenges differently. We’ve secured the supply chain. We’re prepared.
