Public Private Partnerships

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1 Public Private Partnerships Ivan G. Bolden Chief, Army Privatization and Partnerships Office of the Assistant Chief of Staff, Installation Management 13 Feb

2 Privatization & Partnerships Division Privatized Family & Unaccompanied Housing Privatized Army Lodging Army's Privatization & Partnerships Utilities Privatization Enhanced Use Leasing Intergovernmental Support Agreements 2

3 Residential Communities Initiative (RCI) Privatized Housing and Privatized Army Lodging (PAL) Providing a high quality housing and lodging experience for Soldiers and Families that is commensurate with those they are pledged to defend. Assistant Chief of Staff for Installation Management 3

RCI/PAL How Far We Have Come BACKGROUND - 1996, Army Family Housing had $7B un-funded renovation / 10,000-home deficit bills. 1998, Army started Residential Communities Initiative (RCI).

4 RCI/PAL How Far We Have Come BACKGROUND , Army Family Housing had $7B un-funded renovation / 10,000-home deficit bills. 1998, Army started Residential Communities Initiative (RCI). 70% of homes in the Army inventory needed to be torn down or completely renovated. RCI Privatized over 86,000 homes: New construction: over 33,000 homes completed Major/Medium Renovation: over 27,000 homes completed Senior Enlisted/Officer Unaccompanied Privatized Housing (UPH): New construction of 1,394 beds Phase 2 of Bragg (198 beds) in construction First Junior UPH at Fort Meade Planned for 816 rooms; in construction. Final Privatized Army Lodging group closed 1 May 13 Total of over 11,600 rooms $1 Billion in construction 4

Subject to PAL s ability to purchase Army Lodging financial Obligations for new construction.

5 Privatization of Army Lodging (PAL) DELIVERED: 12 Holiday Inn Express (HIE) brand hotels, a combined 2,027 hotel rooms HIE on Fort Polk, LA HIE on Fort Hood, TX HIE on Fort Rucker, AL HIE on Fort Sill, OK HIE on Fort Hamilton, NY HIE on Fort Wainwright, AK HIE on Fort Buchanan, PR HIE on Fort Leavenworth, KS HIE on Joint Base San Antonio, TX HIE on Fort Belvoir, VA DELIVERED: 5 Candlewood Suites (CWS) brand hotels, a combined 838 hotel rooms CWS on Fort Riley, KS CWS on Yuma Proving Ground, AZ CWS on Fort Hood, TX CWS on Joint Base San Antonio, TX CWS on Fort Huachuca, AZ Installations scheduled to transfer to PAL by FY16: Fort Benning, 920 / 920 (*) Fort Lee, 1138 / 1138 (*) Subject to PAL s ability to purchase Army Lodging financial Obligations for new construction. Total guest rooms originally conveyed: 13,780 Total guest rooms at end-state: 12,354 Current PAL locations: 39 Projected PAL locations by FY16: 41 (*) Current Army Owned locations: CONUS: 4 locations (2,214 Guest Rooms) OCONUS : Germany, Italy, Korea (2,000 Guest Rooms) Projected Army Owned locations by FY16: CONUS: 2 locations (83 Guest Rooms) OCONUS: Germany, Italy, Korea (2,000 Guest Rooms) 5

6 Intergovernmental Support Agreements 6

7 Legislative Changes FY13 NDAA 10 USC, Ch. 137 (Procurement), Sec.2336 Installation- Support Services: Intergovernmental Support Agreements (IGSAs) Authorities: Ability to sole-source to public entities May use wage grades normally paid by public entities Partnership agreements NTE five (5) years May use OMA funds to pay for these services Excludes security guard & fire-fighting functions Either entity must already be providing such service for its own use Agreement can t be used to circumvent A-76 requirements FY15 NDAA Moved to Real Estate (Ch. 159), Sec Added Definition: Legal instrument reflecting a relationship between the Secretary concerned and a State/Local government that contains such terms & conditions as the Secretary concerned considers appropriate for the purposes of this section & necessary to protect U.S. interests. Added: Any contract for the provision of installation support services awarded by the federal or a State/Local government pursuant to an IGSA provided in subsection (a) shall be awarded on a competitive basis. 7

8 Partnership Strategies IGSA Legal Instruments: $$ Funds Exchanged Free MOA MOU Cooperative Agreement Contract Risk & Complexity Low Moderate High StratCom Lessons-Learned GC engagement sets the tone DGC is Installation POC Build Momentum Bring agreements to closure There is virtue in the process 8

9 Memo to Field from LTG Halverson: Encouraging partnership Engage with communities Brief him on partnership initiatives during his visits FRAGO: Details NDAA 2015 changes v. NDAA 2013 Establishes 2015 goals for proposals (5-10 qtr/imcom; 1-3 per qtr/other commands) Establishes a goal of 90 days for completed proposals to reach OACSIM Directs commands to submit proposals concurrently to OACSIM when sending to higher HQs Strategic Engagements: Way Forward with Partnerships National Conferences: ADC; NAA; NCPPP; SAME. Army Command Sr. Leadership (Army Secretariat; ACSIM; Director, Resource Mgmt & Comptroller, Nat'l Guard Bureau; Assistant Chief, U.S. Army Reserve; The Adjutant General, FL National Guard and AL National Guard) State/Regional Organizations (Northern VA Regional Council (NVRC); Maryland Military Installation Council (MMIC); State of KY Governor's Office) 9 Local Leadership (City Mayors--Fairbanks, AK; Columbia, SC; Hattiesburg, MS)

10 The Power of Privatization Privatization has allowed us to: We have built world class communities We have eliminated the Army backlog and deficit We have used our creativity and innovation with our partners to develop sustainable and supportable communities We have improved partnerships with local communities But most of all, it has allowed us to take care of military families, single soldiers, and support the Army s missions 10

Army Privatization Update

Army Privatization Update Scott Chamberlain / Mary-Jeanne Marken Office of the Deputy Assistant Secretary of the Army (Installations, Housing and Partnerships) 28 August 2017 Installation Management Command