17 JAN 03

1
IN PROGRESS REVIEW
of
FORT POLK RCI
for
COMMUNITIES
2003
Wayne.Ball_at_polk.army.mil
17 JAN 03
531 1977
2
AGENDA
BACKGROUND TIMELINES SCOPE LOCAL IMPACTS
3
BACKGROUND ARMY RCI

• Authority Congress 1996
• Objective Army partner with private developer to
  renovate, build, manage, and maintain housing
• Components
• Army conveys houses to development partner
• 50 year lease of land (25 year renewal)
• Basic Allowance for Housing pays for housing
• Developer provides capital and expertise
• Pilots Carson, Hood, Lewis, Meade

4
BACKGROUND - OVERALL DA PLAN 28 PROJECTS /
70,000 HOMES / 10 YEARS
Fort Lewis, WA 3,982
Fort Drum, NY 2,272
4 Northeast Projects Fort Hamilton, NY
436 Picatinny Arsenal, NJ 116 W. Reed AMC, D.C.
221 Fort Detrick, MD 155
Carlisle Brks, PA 316
Fort Meade, MD 3,170
Fort Leavenworth, KS 1,586
Presidio of Monterey / Naval Postgraduate School,
CA 2,268
Fort Belvoir, VA 2,070
Fort Leonard Wood, MO 2,472
Fort Carson, CO 2,663
Fort Eustis / Story / Monroe, VA 1,115
Fort Campbell, KY 4,240
Fort Bragg, NC 4,744
Fort Irwin / Moffett / Parks, CA 2,755
Fort Knox, KY 3,476
Fort Gordon, GA 876
Redstone Ars, AL 625
Fort Benning, GA 4,109
Fort Rucker, AL 1,516
Fort Shafter / Schofield, HI 8,178
Fort Stewart / Hunter, GA 2,927
Fort Bliss, TX 2,763
Fort Polk, LA 3,821
FY 1996-2001 Projects
Fort Hood, TX 5,912
FY 2002 Projects
Fort Sam Houston, TX 935
FY 2003 Projects
FY 2004 Projects
5
BACKGROUND FORT POLK RCI VISION
Long-term partnership with developer who has
vision, commitment, and financial ability to
provide quality housing in quality
neighborhoods. End state 3,821 family
homes. Align housing with demographics of
assigned soldiers. Increase number of 3/4/5
bedroom homes. Provide for unaccompanied
personnel. Enhance quality of family
life. Increase personal space and storage
space. Reduce multi-plex units. Improve
visual appeal. Enhance quality of community
life. Parking, recreation areas, community
centers. Retain ability to provide housing for
all grades. Maintain security, safety, public
health, environment.
6
BACKGROUND HOW PARTNERSHIP WORKS

• Limited Liability Corporation (LLC)
• Real estate developer as Managing Partner
• Funding DA (one time), BAH, equity, loans
• Lockbox Agent for all project
• Partner income from performance incentive fees
• Key points/differences
• Long-term (50 years vs 1 year with options)
• Partner income based on performance IAW plans
• Motivation to use project for soldiers
  interest
• Use private business practices (for workforce,
  materials, subs)
• Need extensive long-term local support

7
BACKGROUND HOW SOLDIERS PAY RENT

• BASIC ALLOWANCE FOR HOUSING (BAH)
• BAH COMPONENTS RENT
• UTILITIES
• RENTERS INSURANCE
• BAH NOT ENOUGH TO PAY ALL COMPONENTS
  RESULTED IN OUT- OF-POCKET OF 130 PER MONTH
• CONGRESS ZERO OOP BY 2005

8
BACKGROUND BAH AT FORT POLK

• GRADE 2001 2002 2003
  2004 2005
• O3 603 744 807
  873 940
• E7 535 655 712
  770 831
• E4 431 488 530
  524 619
• AVERAGE 499 569 618 669
  721
• Projected

9
BACKGROUND SOLDIERS HOUSING NEEDS

• FORT POLK INVENTORY 58 2BR, 42 3/4/5BR
• ACTUAL NEEDS FOR 06 35 2BR, 65 3/4/5BR
• ISSUE IS JUNIOR ENLISTED SOLDIER NEEDS FOR
  3/4/5 BRWITHIN BAH

10
(No Transcript)
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RCI is part of the Military Housing Privatization
Initiative which was enacted by Congress in 1996.
The DoD continues to privatize military family
housing on military installations to manage the
continued rising costs of housing and need to
provide better housing to military families.

• RCI
• Programs at Fort Hood, Texas and Fort Carson,
  Colorado show that 70 of RCI contracts are with
  small, local and disadvantaged businesses.
• Fort Polk will sign a 50-year contract. Initial
  investments are projected to be in the millions
  of dollars.

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SCOPE DA HOUSING MARKET ANALYSIS

• Sets scope of RCI project
• DA does by contract
• Completed in Jun 02
• DOD/DA standards
• No mobile homes
• Quality definitions
• Costs by grade

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SCOPE HMA MILITARY POPULATION
(ASIP PROJECTIONS THROUGH 2006)
14
SCOPE HMA INSTALLATION
HOUSING INVENTORY (Projected to
2006 for DA Housing Market Analysis)
15
SCOPE EXAMPLE OF ANNUAL ECONOMIC IMPACT (2004
2013)

• 
  PRE-RCI RCI
• AVERAGE AVERAGE
• FY 99-02
  2004-2013
• Operations and maintenance 18M
  19M
• Renovation/construction 3M
  20M
• (Example Renovate 60 2BR TO 30 3/4/5BR _at_
  40K)
• Renovate 300 _at_ 20K
• Renovate 400 _at_5-10K
• Construct 80 at 120K
• _____ _____
• TOTAL 21M 39M

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SCOPE OF DEVELOPMENT MINOR RENOVATION 5-10,000

• REFURBISH/REPLACE KITCHEN CABINETS AND
  COUNTERTOPS
• REFURBISH/REPLACE BATHROOM VANITY, CABINETS,
  GROUT
• REPLACE CARPET
• PAINT INTERIOR
• REPLACE/EXTEND YARD FENCING

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SCOPE OF DEVELOPMENT MEDIUM RENOVATION 20,000

• RENOVATE KITCHEN
• RENOVATE BATHROOMS
• INSTALL SIDING
• REPLACE ELECTRICAL DISTRIBUTION PANEL
• REPLACE ROOF
• REPLACE CARPET
• PAINT INTERIOR

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SCOPE OF DEVELOPMENT MAJOR RENOVATION 40,000

• RECONFIGURE 2BRS TO 3/4/5BR TOWNHOUSE
• RENOVATE KITCHEN
• RENOVATE BATHROOMS
• INSTALL SIDING
• REPLACE ELECTRICAL DISTRIBUTION PANEL
• REPLACE ROOF
• REPLACE CARPET
• PAINT INTERIOR

19
SCOPE OF DEVELOPMENT CONSTRUCTION 120,000

• DEMOLITION/DISPOSAL
• INFRASTRUCTURE (ROADS, UTILITIES, DRAINAGE)
• CONSTRUCT 3/4/5BR/2BATH/2CARPORT

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RCI Support Contracts
CONTRACTS


DATES/REMARKS JJ MAINTENANCE
CONTRACT

CONTRACT RENEWAL YEARLY
CE-POLK (HVAC)

EXPIRES
2014 RED RIVER SOLID WASTE

EXPIRES MAY
2003 GRASS MOWING


SEASONAL, APRIL TO SEPT.

AECOM


BEGINS JUNE 15 2003
INSTALLATION PERIMETER FENCING

COMPLETION 2005
INSTALLATION PERIMETER ROAD

COMPLETION 2007(earliest)
LAZAR ROAD

COMPLETION JAN 2004
ACCESS CONTROL POINT 1, LA AVENUE

COMPLETION JUN 2004
UTILITIES PRIVATIZATION

BEGINS JANUARY 2005
SPRINT CABLE (AAFES)

INSTALLATION ON-GOING
801 HOUSING

EXPIRES
2007 AND 2008 GRAYBAR SELF-HELP
(MATERIALS CONTRACT)
DLA CONTRACT
PEST CONTROL

PREPARING
CONTRACT US FOREST SERVICE-TIMBER
HARVEST
RCI COORD. WITH
USFS ANNUAL FUNDING PROJECTS (FY 04
FUNDS ONLY)
WILL ENHANCE RCI
MILITARY ALLOTMENT CONTRACT

ON-GOING DA CONTRACT


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LOCAL IMPACTS AND SUPPORT NEEDED

• PARTNER WILL USE PRIVATE BUSINESS PRACTICES (FOR
  WORKFORCE, MATERIALS, SUB-CONTRACTORS)
• WORKFORCE (WORKLOAD FOR 50 YEARS)
• BUILDING MATERIALS (MAINTENANCE, RENOVATIONS,
  CONSTRUCTION, ROADS, UTILITIES INFRASTRUCTURE,
  ETC.)
• RENTERS INSURANCE
• LOCAL/SMALL BUSINESS (EST 70)
• ECONOMIC MULTIPLIER EFFECT

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SUMMARY

• START CDMP COLLABORATIONS APR 03
• PARTNER ASSUME OPERATIONS APR 04
• 20M/YEAR TO RENOVATE/CONSTRUCT IN 2004-13
• 70 FROM LOCAL/SMALL BUSINESSES
• WORKLOAD/MATERIALS FOR 50YEARS

23
RCI will stimulate regional development with
business and industry, while providing top-notch
housing for soldiers and their families.
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(No Transcript)
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Assistant Secretary of the Army
(Installations and Environment)


RCI PROCESS 2-STEP RFQ PROCUREMENT
Step 1 Establish Competitive Range for a Group
that has Multiple Projects
Step 2 Select Partners (from Range) Who Bid on
Group Projects (4-Project Group Example)
Bidders Who Make Competitive Range
Bidders A B C D E F G H I
Fort W (D Day) Bidders Winner B, F, H
H
A B D F H I
Fort X (D90) Bidders Winner A, B, D, I
A
Step 1 Evaluation Factors (5)
Step 2 Evaluation Factors (4)
Fort Y (D180) Bidders Winner B, D, F, H
B
Fort Z (D270) Bidders Winner A, H, I
I
STEP 1 -- 5 EVALUATION FACTORS 1 -- Experience 2
-- Financial Capability 3 -- Organizational
Capability (Corp) 4 -- Past Performance 5 --
Small Business (Past Use)
STEP 2 -- 4 EVALUATION FACTORS 1 -- Preliminary
Concept 2 -- Organizational Capability
(Installation) 3 -- Financial Return 4 -- Small
Business (Proposed Use)
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RFQ-1 STATEMENT OF QUALIFICATIONS EXTRACT FROM
PARAGRAPH 4.3.5 OF DACA31-01-R-0017

• 4.3.5 Small Business Utilization (General
  History)
• Provide information concerning the offerors use
  of small business concerns that
• -Describes the offerors documented policies
  related to small business participation and the
  extent of participation of small business
  concerns in your offerors past and current
  projects. In the case of a joint venture,
  information, as stated above, on the use of small
  business concerns on past projects should be
  provided separately for each principal member.
• -Provide at least one point of contact for
  projects within the last three years that the
  offeror has involved subcontracted work. Include
  the name, project title, and phone number of the
  local, state, or federal government/company/agency
  for these projects.
• For your reference in providing this information,
  the term small business concerns refers to Small
  Businesses, Small Disadvantaged Businesses,
  Women-Owned Small Businesses, Veteran-Owned Small
  Businesses and Service Disabled Veteran-Owned
  Small Businesses. Information concerning the
  definition and size standard for small business
  concerns may be found at 13 Code of Federal
  Regulations (CFR) Parts 121 and 124.

27
RFQ-2 STATEMENT OF QUALIFICATIONS EXTRACT FROM
PARAGRAPH 4.4.4 OF DACA31-01-R-0017

• 4.4.4 Small Business Utilization (On-Site,
  Installation Specific)
• Provide information concerning your firms
  proposed use of small business concerns that
• -Articulates your firms approach to ensuring
  that small business concerns will have maximum
  practicable, subcontracting opportunities during
  Phase 2 (CDMP implementation). For example, this
  discussion should include an illustrative list of
  work areas (e.g., building, maintenance, etc.) in
  which you will use small business concerns.
• -Provides your plan for how much (either dollars
  or percentage) of the overall cost of this
  project will be subcontracted to small business
  concerns.

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ROAD TO SUCCESS USE OF SMALL/LOCAL BUSINESS

• 1 of 5 evaluation factors for RFQ Step 1
• 1 of 4 evaluation factors for RFQ Step 2
• In partners oral presentation for RFQ Step 2
• In partners written submission for RFQ Step 2
• Included in award to selected partner
• In Fort Polk Community Briefings
• In Fort Polk collaboration points
• In Fort Polk Top 10 Collaboration Points
• Support essential to successful CDMP

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AUTHORIZED SPOKESPERSONS FOR FORT POLK RCI

• BG Jason K. Kamiya, Commander
• COL Mark D. Rocke, Garrison Cmdr
• Wayne A. Ball, RCI Program Manager
• Paula Schlag, PAO