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Air Force Housing Privatization

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Air Force Housing Privatization

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    1. 4/28/2012 1 Air Force Housing Privatization Mr. Ian Smith, P.E., REM Housing Privatization Division Air Force Center for Environmental Excellence

    2. 2 Overview Why Privatization How We Privatize The Way Ahead

    3. 3

    4. 4 Why Use Privatization Air Force has 107,000 family housing units Average age is 32 yrs 49,000 inadequate Presidential directive to eliminate inadequate housing by 2007 Traditional Approach is the Military Construction Program: $6 Billion over 12 years (at current funding levels) HurlburtHurlburt

    5. 5 Eliminate inadequate houses by 2007 in CONUS, 2009 overseas Increase privatization to at least 70% end state in CONUS Rely on local community first; Requirement: 88,950 units 2010 End State: 37,900 AF owned, 45,600 privatized, 7,000 leased Funding Required (FY06-11): Investment = $3.5B, O&M = $3.7B Why Use Privatization Where We’re Going

    6. 6 Why Use Privatization Air Force Model 50 Year Lease Gov’t may Provide Loan and/or Limited Loan Guarantee Basic Allowance for Housing minus utility allowance is basis for rent Member not required to live there

    7. 7 How We Privatize Project Phases At-A-Glance Phase I: Project Identification Goal: Identify project requirements and potential for privatization; initiate project execution Phase II: Project Definition Goal: Refine project alternatives; obtain approval of project concept and Request for Proposal (RFP) Phase III: Project Acquisition Goal: Solicit and select best value project owner and close the transaction Phase IV: Portfolio Management Goal: Oversee post-closing activities of all parties to ensure that all contractual obligations are met or exceeded Phase V: Project Closeout Goal: Determine continuing requirements and dispose of or acquire assets as appropriate Privatization planning should begin as early as two years prior to the year of authorization. During Phase I, the project is identified as a candidate for privatization based on the Installations Family Housing Master Plan (FHMP). The project documents are submitted (DD Form 1391) through MAJCOMs to Office of Civil Engineer, Housing Division, Program Development Branch (ILEHD). These programming documents outline the scope of the privatization initiative, either whole or partial base housing, and its associated MILCON costs to cover the anticipated scored cost. DD Form 1391 also includes the scope of a traditional MILCON project that can be “bought” with the MILCON dollars should the privatization initiative prove to be infeasible to execute. During Phase II (Project Definition), the fiscal year prior to the execution FY-1, the “best” project concept is selected from among options and a draft RFP is developed and refined. During Phase III (Project Acquisition), the project is solicited to developers, who are invited to submit proposals, and the “best value” proposal is selected. During Phase IV (Project Management), the developer implements the project as required by the terms of the controlling legal instruments and begins demolishing, renovating, constructing, maintaining and maning the housing units. During Phase V (Project Closeout) at the termination of the project, the lease may be negotiated again, assets returned to the installation or disposed of in accordance with the lease agreements.Privatization planning should begin as early as two years prior to the year of authorization. During Phase I, the project is identified as a candidate for privatization based on the Installations Family Housing Master Plan (FHMP). The project documents are submitted (DD Form 1391) through MAJCOMs to Office of Civil Engineer, Housing Division, Program Development Branch (ILEHD). These programming documents outline the scope of the privatization initiative, either whole or partial base housing, and its associated MILCON costs to cover the anticipated scored cost. DD Form 1391 also includes the scope of a traditional MILCON project that can be “bought” with the MILCON dollars should the privatization initiative prove to be infeasible to execute. During Phase II (Project Definition), the fiscal year prior to the execution FY-1, the “best” project concept is selected from among options and a draft RFP is developed and refined. During Phase III (Project Acquisition), the project is solicited to developers, who are invited to submit proposals, and the “best value” proposal is selected. During Phase IV (Project Management), the developer implements the project as required by the terms of the controlling legal instruments and begins demolishing, renovating, constructing, maintaining and maning the housing units. During Phase V (Project Closeout) at the termination of the project, the lease may be negotiated again, assets returned to the installation or disposed of in accordance with the lease agreements.

    8. 8 How We Privatize Objectives for Privatized Housing House military families in Air Force communities No out of pocket costs Housing grouped by officer/enlisted and grade in community setting Community activities centered around ancillary facilities -- playgrounds, sports courts, community center High standards of appearance Ability to interact with leadership in town meetings -- Retain Military Culture --

    9. 9 How We Privatize Housing Waterfall Privatized Housing Priority Placement - Referred Military Families - Other Active Duty Military Members - Federal Civil Service Employees - Retired Military Members/Family - Guard and Reserve Military Members/Families - Retired Federal Civil Service - DoD Contractors/Permanent Employees (US Citizens) - General public

    10. 10 How We Privatize Awarded to Date (16)

    11. 11 The Way Ahead In Acquisition

    12. 12 The Way Ahead In Development

    13. 13

    14. 14 It All Comes Back to Our Goal 14 April 04 (Top) Family Housing, Offutt AFB, Nebraska (Bottom left) Family Housing, Wright-Patterson AFB, Ohio (Bottom right) Family Housing, MacDill AFB, Florida (constructed 2000)14 April 04 (Top) Family Housing, Offutt AFB, Nebraska (Bottom left) Family Housing, Wright-Patterson AFB, Ohio (Bottom right) Family Housing, MacDill AFB, Florida (constructed 2000)

    15. 15 Questions? Moody Floor plan Buckley Site plan Wright Patterson Construction Little Rock Elevation Rendering Moody Floor plan Buckley Site plan Wright Patterson Construction Little Rock Elevation Rendering

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