Portfolio and Asset Management Orientation

1
Portfolio and Asset Management Orientation

• Sheryl Faust-Beck
• HQ AFCEE/HDP

2
Agenda

• Common Questions
• Portfolio and Asset Stakeholders and
  Responsibilities
• Team Interaction
• Air Force and Wing Authority

3
What Wing Commanders Want to Know

• What do I need to know about this transaction?
• How do we spend the project money?
• How does the occupancy waterfall work?
• How do we handle disputes?
• What is my authority?
• How do we handle security?
• Will tenants pay out of pocket for utilities?
• Which AFIs do we need to apply?

4
The Program Players
5
The Program
6
The Service

• Portfolio Manager Responsibilities (AFCEE)
• Monitors program financial performance, loan
  activity, compliance and document archive
• Evaluates portfolio performance
• Reports financial and operational performance
• Implements best business practices
• Facilitates problem resolution

• Asset Support Responsibilities (MAJCOM)
• Provides asset office resources
• Drafts and implements command guidance
• Provides reviews and support
• Balances manpower authorizations
• Provides staffing advice
• Supports problem resolution
• Delegates decision authority

• Asset Manager Responsibilities(BASE)
• Assists with customer service
• Monitors operations and maintenance
• Hosts site assessments
• Prepares PEP data
• Monitors compliance
• Collects report data

• Project Owner Responsibilities
• Provides financing, capital and reinvestment
• Builds/renovates the houses
• Serves the military tenant
• Manages and maintains the property
• Reports project data to the Air Force team

7
The Base and Wing
8
Wing Commanders Role

• MRC Chairman (OA 11)
• Asset Manager, property manager, tenant rep
• Reviews project status, issues, service, events,
  expenses
• Budget Approval
• Review recommendation and approve or disapprove
  within 30 days
• If disapproved, previous years budget prevails
• Dispute Resolution
• lt10k Commander decision in writing (GL 23.1)
• gt10k Commander decision, Owner appeal (GL
  23.2)
• Project Status
• Management operations
• Maintenance operations
• Tenant satisfaction

9
The Base and Tenant
Traditional
Privatized

• Air Force provided family housing
• Air Force provided security/fire
• HRMA defined requirements
• Demographics
• AFI described management/ops
• Occupancy requirements
• Housing Flight provided service
• Air Force maintained houses
• Air Force paid utilities

• Owner provides family housing
• Air Force provides security/fire
• Owner pays for security/fire
• HRMA defined requirements
• 1/3 privatized housing
• Housing Flight refers families
• Lease describes agreement
• Owner manages demographics
• Low occupancy affects performance
• Owner provides service
• Owner maintains houses
• Tenant pays utilities

• Asset Manager
• Compliance Manager
• Technical Support

10
The Base and MAJCOM

• Program Manager
• Command Liaison
• Technical Support

Traditional
Privatized
Resources Staffing Guidance

• Administer Bases resources
• Provides Bases operating budget
• Manage manpower authorizations
• Provide program/project management support
• Provide AFI guidance and interpretation
• Solicit and review report information
• Provide resolution assistance

• Administer Bases manpower/training resources
• Provides Bases operating budget
• Review Owners operating budget
• Understand legal documents to help resolve
  issues
• Solicit and review PEP submission
• Review quarterly reports
• Provide resolution assistance

11
The Base and Owner
Traditional
Privatized

• Funds FAR solicitation
• Air Force is customer, contractor is supplier
• Modifications require funded change orders
• Contracting Officer manages the contract
• Civil Engineering providestechnical expertise
• Terminates contract for poor performance
• Hires replacement contractor

• Develops RFP
• Negotiates agreement with best value offeror
• Leases land, conveys assets
• Owner constructs and maintains property
• Modifications require negotiation, budget review
  and approval not Air Force funded
• Portfolio/Asset teams manage the relationship to
  keep the project on track

• Ownership Executive
• Property Manager
• Maintenance Manager
• Construction Manager

12
The Base and Portfolio Manager
Assistance Visits Document Summary Document
Archive Compliance Tools Periodic Reports

• Portfolio Manager
• Financial Manager
• Legal Support
• Portfolio Advisor

• Asset Manager
• Compliance Manager
• Technical Support

13
Summary

• Its not a contract/contactor, its a business
  agreement/partnership
• Its not the Bases money, its the Projects
  money
• The occupancy waterfall provides risk protection
• Disputes follow an established hierarchy
• Authority is delegated from SAF down
• Design review is the Bases authority
• Security is shared or reimbursed
• Some tenants may pay out of pocket for utilities
• AFI does not govern, transaction documents rule