Several MBP team members recently had the opportunity to attend SAME’s annual Capital Week conference. Hosted by the Society of American Military Engineers (SAME), this premier event convenes federal agency leaders, military officials, and industry partners to discuss their construction programs, policy changes, and the evolving challenges shaping the federal built environment.
This year’s sessions covered everything from military construction (MILCON) and Sustainment, Restoration, and Modernization (SRM) to acquisition reform, emerging technology, and infrastructure resilience—all set against a backdrop of growing uncertainty around tariffs, supply chains, and long-term federal funding. Below is a summary of our top five key takeaways from the conference:
This year presents an unusual budget situation: a full-year budget resolution for 2025 has been passed, but the reconciliation process is ongoing. Under the recently approved omnibus continuing resolution (CR)—a highly unusual funding measure that allows federal agencies to continue operating when formal appropriations haven’t been enacted—most agencies dedicated to national security and defense received enough funding to carry out operations through 2025. However, for certain activities, including project starts, the bill requires agencies to submit their spending plans to Congress within 45 days. At just 100 pages, the CR did not include the typical Congressional guidance usually found in such measures which has resulted in funding that doesn’t necessarily align with the preceding fiscal year like most CRs require, nor does the CR reconcile fully with the Biden era draft 2025 budget or reflect the dynamic changes in priorities resulting from DOGE. Agencies will be working hard until the end of April 2025 to navigate these unique complexities and prepare the required spending plans.
In addition, Congress and the Administration still need to address the federal debt ceiling issue, which is expected to be reached sometime in the middle of the fourth quarter. If no agreement can be reached on the debt ceiling, a shutdown at this time could be particularly problematic, especially when combined with the late passage of the CR. A shutdown could result in delays to planning and contracting approvals at a busy time when procurement officials are scrambling to make end-of-year contract awards. Add to that, we are seeing a historically significant MILCON program period, with an unprecedented number of very large and strategic programs, which will represent a significant workload for procurement officials.
While Congress continues to work on fiscal year (FY) 2025, mainly to codify the new administration’s policies, the agencies are already preparing FY26 budgets, with drafts anticipated by June. Even if some agencies experience smaller programs next year, award totals may still rise due to project backlogs.
The increase in workload, concerns about project cost and schedule, and reduced staffing are just a few of the challenges listed by the agencies who presented at Capital Week, driving them to seek innovation, explore contracting alternatives, and foster greater cooperation with industry through listening sessions, professional association events and industry days. Several agencies outlined a shared focus on early planning, scope validation, and design maturity to improve delivery outcomes and welcomed industry’s engagement in these efforts.
The US Army Corps of Engineers (USACE) is prioritizing stakeholder coordination, schedule performance, and readiness at the initial design phase, while also advancing innovations in construction management and technical standards. Naval Facilities Systems Engineering Command (NAVFAC) emphasized a push toward industrialized construction methods—such as modular off-site fabrication, on-site automation, and standardized system design—to reduce costs, simplify commissioning, improve safety, and accelerate delivery.
NAVFAC highlighted efforts to strengthen project governance by involving senior leadership earlier in scope approvals and critical decision-making. To enhance efficiency and mitigate risk, NAVFAC and other agencies are also piloting alternative delivery strategies, including expanded use of Early Contractor Involvement.
SRM programs are scaling up significantly as well. GAO estimates a deferred maintenance backlog of at least $137 billion, and the Office of Secretary of Defense adopted a new funding model for SRM which is expected to be fully implemented by 2026 for all services. The services have been creating investment plans, such as the Air Force’s dormitory master plan and those identified by the Marine Corps’ Readiness Maximization Tool. All of this is likely to result in significant increases in funding—up to four times higher than prior years. With all of this SRM work to be done, expanded workforce capacity and improved contract delivery will be essential. In addition, many of these SRM projects are expected to mirror MILCON in level of complexity, underscoring the need for adaptable processes and increased support from industry partners.
Federal agencies are actively implementing acquisition reforms to expedite project delivery and address capacity constraints. The Federal Acquisition Regulation (FAR) is presently undergoing a comprehensive revision, signaling future updates to other procurement processes in the Defense Acquisition Regulations System (DARS). Earlier this year, the executive order requiring Project Labor Agreements (PLAs) for contracts over $35 million was rescinded, prompting agencies to revise existing contracts and acquisition practices accordingly.
AI was a hot topic as agencies are exploring how they can support more innovative facility operations, especially where traditional systems fall short—like energy monitoring in unmetered buildings. Presenters discussed the potential of AI and machine learning to integrate and analyze data from diverse sources, including weather models, control systems, condition assessments, and federal asset databases. Goals for the use of AI include standardizing data visualization, streamlining maintenance, and enhancing decision-making at the enterprise level. Long-term efforts include examining digital twins and other AI-powered tools to improve resiliency, efficiency, and lifecycle performance across the federal real property portfolio. USACE and NAVFAC are exploring the use of AI-tools for assisting with scheduling, cost estimating, RFP response evaluations, and other construction management functions.
Discussions around reconstruction planning in Ukraine focused on anticipated demand for project management, infrastructure development, and transparent contracting once post-conflict recovery begins. U.S. agencies—not direct foreign ministries—will continue to serve as the primary contracting authorities for future support by U.S. companies operating in Ukraine. It was also reported that several firms were impacted by DOGE actions as their contracts for work in Ukraine through USAID were canceled. Additional requirements related to mining, power, and transportation are also anticipated.
The 2025 SAME Capital Week underscored the increasing challenges facing federal agencies—tight budgets, growing program needs, and heightened oversight. In response, agencies are placing more emphasis on early planning, smarter risk management, and flexible delivery strategies.
Strong industry support will be essential as workloads expand and resources are stretched. Partners who understand the federal landscape and can offer practical, solutions-oriented expertise will play a key role in helping agencies deliver on their goals.
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