Military Construction
Corps of Engineers Advances $986M San Antonio Cyber Center with Progressive Design-Build Delivery
600,000-sq-ft secure complex will support the US Air Force's cybersecurity efforts
The U.S. Army Corps of Engineers on July 22 released new schedule and scope details for a cyber and intelligence operations center at Joint Base San Antonio-Lackland programmed at $986 million, moving what the Corps describes as one of its first progressive design-build projects using Other Transaction Authority toward competition.
Industry-day slides describe an approximately 600,000-sq-ft main facility and a separate 12,500-sq-ft central utility plant. The Corps anticipates posting the request for qualifications Aug. 26, with responses due Sept. 25. The center would support the 16th Air Force’s cyber, intelligence, surveillance, reconnaissance, electronic warfare and information operations missions.
A spokesperson for the Corps told ENR it received a directive for the facility within the fiscal 2028 military construction program at Lackland’s Security Hill, with planned occupancy exceeding 3,000.
The Corps had identified the progressive design-build and OTA structure in a June 15 special notice. The July 22 update added the industry-day slides and an attendee sign-in sheet. The notice says industry-day questions and answers will be posted later, and the solicitation has not yet been issued.
According to the procurement notice, the multistory facility would use a high-performance structural-steel frame on a reinforced-concrete foundation and incorporate enhanced security measures, including resistance to progressive collapse. An integrated visitor control center would manage access to the secure campus.
A substantial portion of the building would house a purpose-built cyber operations data center supporting high-performance computing, artificial intelligence server clusters and machine-learning systems. Plans call for scalable, high-density electrical infrastructure capable of future expansion.
The Corps issued an enterprise playbook for progressive design-build through OTA this year. The document calls the method a “fundamental evolution” in how the Corps delivers mission-critical infrastructure. OTAs operate outside the Federal Acquisition Regulation, the work is governed by the negotiated agreement rather than the standard federal contracting framework.
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The Corps previously tested construction OTAs on a $40-million Fort Campbell barracks renovation awarded in 2024, its first construction agreement using the authority.
The planned 600,000-sq-ft cyber and intelligence center would be built on Lackland’s Security Hill, southeast of the installation’s airfield and near Valley Hi Drive.
Map courtesy of USACE
“The success of this project is reshaping how USACE approaches construction acquisition, especially for projects requiring speed, flexibility and innovation,” Louisville District Engineering Design Branch Chief Carl Mudd said of the Fort Campbell pilot.
There will be an initial firm-fixed-price award for design and preconstruction services, followed by an option for final design and construction. The progressive design-build team will be selected primarily on qualifications and experience before the project’s final design, construction price and schedule are established.
The government plans to shortlist up to three teams for mandatory one-on-one pitch meetings testing technical expertise, communication and problem-solving before making a “most qualified best-value” selection not based on lowest price.
The notice says teams in the first phase typically advance the design to approximately 60% to 90% completion while providing open-book cost estimates, constructability reviews and value-engineering recommendations. The selected team would then submit a commercial proposal for the remaining design and construction work.
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If the Corps accepts the price and schedule, it would authorize the second phase. If the parties cannot reach agreement, the Corps could use an off-ramp allowing the government to take the completed design and procure construction through another method.
The notice also requires firms to be entirely U.S.-owned and operated, maintain Level 2 Cybersecurity Maturity Model Certification and provide personnel experienced with secure facilities and eligible for security clearances. Teams also must document at least $1.2 billion in bonding capacity.
A spokesperson for the Corps referred further questions to the Air Force Civil Engineer Center. The value, construction schedule or funding status of the initial phase have not been publicly disclosed.
Facts Only
* The U.S. Army Corps of Engineers released schedule and scope details on July 22.
* The project is for a cyber and intelligence operations center at Joint Base San Antonio-Lackland.
* The total estimated cost is $986 million.
* The facility size includes approximately 600,000 square feet for the main facility and a 12,500-square-foot central utility plant.
* The center will support the 16th Air Force’s cyber, intelligence, surveillance, reconnaissance, electronic warfare, and information operations missions.
* The facility is planned for Lackland’s Security Hill.
* The project involves a progressive design-build process using Other Transaction Authority (OTA).
* The structure will use a high-performance structural-steel frame on a reinforced-concrete foundation with enhanced security measures.
* A portion of the building will house a cyber operations data center supporting high-performance computing, AI server clusters, and machine-learning systems.
* The process includes an initial firm-fixed-price award for design/preconstruction followed by an option for final design and construction.
* Firms must be U.S.-owned, maintain Level 2 Cybersecurity Maturity Model Certification, and provide personnel with security clearances and bonding capacity of at least $1.2 billion.
Executive Summary
The U.S. Army Corps of Engineers has released schedule and scope details for a $986 million cyber and intelligence operations center at Joint Base San Antonio-Lackland, which is planned to be situated on Lackland’s Security Hill. The facility will encompass approximately 600,000 square feet for the main facility and a separate 12,500-square-foot central utility plant. This center will support the 16th Air Force’s cyber, intelligence, surveillance, reconnaissance, electronic warfare, and information operations missions and is anticipated to accommodate over 3,000 personnel.
The project utilizes a progressive design-build approach utilizing Other Transaction Authority (OTA) toward competition. The plan involves a multi-phase process starting with an initial firm-fixed-price award for design and preconstruction services, followed by an option for final design and construction. Selection of the design-build team will prioritize qualifications and experience over initial cost. The facility's design calls for a structural-steel frame on a reinforced-concrete foundation and integrated security measures. A significant portion of the building will house a cyber operations data center equipped for high-performance computing and machine learning systems, with scalable electrical infrastructure planned for expansion.
Full Take
The mechanism described in the notice—utilizing Other Transaction Authority (OTA) for progressive design-build—represents a deliberate shift away from traditional federal contracting frameworks toward methods emphasizing speed, flexibility, and innovation in infrastructure delivery. The focus on selecting teams based on qualifications and experience before establishing final cost or schedule suggests a prioritization of technical capability over initial budgetary constraints, which can be interpreted as an attempt to streamline complex, cutting-edge projects outside standard acquisition processes.
The structure implies that the value proposition is tied not just to the final deliverable but to the iterative process of risk mitigation and collaborative design, evidenced by the multi-stage pitch process where teams provide cost estimates and constructability reviews before a final commercial proposal is solicited. However, this reliance on negotiation outside established regulatory frameworks introduces inherent opacity regarding the public cost assessment, as the source material explicitly notes that the value, construction schedule, or funding status of the initial phase have not been publicly disclosed. This creates an environment where operational speed may be prioritized over full transparency regarding fiscal responsibility for mission-critical infrastructure development.
The requirement for firms to possess specific cybersecurity certifications and substantial bonding capacity alongside experience sets a high barrier to entry, which serves a dual purpose: ensuring the security posture of the facility while simultaneously segmenting the contracting pool to highly capable entities. The pattern suggests that accelerating critical capability acquisition involves embedding specialized compliance requirements directly into the procurement structure rather than applying them as subsequent hurdles. This raises questions about whether this progressive approach truly results in superior value or simply reallocates complex regulatory scrutiny across different contractual phases. What determines if the pursuit of speed and innovation ultimately yields more resilient, fully transparent infrastructure, or merely a faster route to implementation?
Sentinel — Human
This text appears to be a factual report grounded in public release documentation regarding a military construction project and its acquisition methods.