Press Release: Air Force selects contractor for Western Group housing privatization

  • Published
  • By Air Force Center for Engineering and the Environment
  • Public Affairs
LACKLAND AFB, Texas --  Release No. 20110215-01

The Air Force has identified Balfour Beatty Communities, LLC, to privatize military family housing for Western Group bases at Beale AFB, Calif.; F.E. Warren AFB, Wyo.; Malmstrom AFB, Mont.; and Whiteman AFB, Mo.

The deal, valued at over $330 million in development costs, provides new and renovated housing for 3,264 military families.

The Air Force selected BBC after a competitive solicitation process led by the Air Force Center for Engineering and the Environment here. BBC currently manages housing units on nine Air Force installations, including Altus and Tinker AFBs, Okla.; Fairchild AFB, Wash.; Lackland and Sheppard AFBs, Texas; Luke AFB, Ariz., Travis and Vandenberg AFBs, Calif.; and Tyndall AFB, Fla.

Under the deal, the Air Force will lease approximately 1,330 acres of land as part of a 50-year transaction and convey 4,047 existing housing units and other improvements to BBC. The project will provide some 700 new and 2,000 renovated homes to be completed in five years.

At closing, the houses become property of BBC, who will own and operate the rental housing development for military families, as well as finance, plan, design and construct improvements in the development, which must maintain at least 3,264 housing units for the 50-year lease period.

In 1996, Congress created the Military Housing Privatization Initiative as part of the National Defense Authorization Act. The goal was to provide military members with quality homes faster than through military construction alone.

According to Ian Smith, deputy chief of AFCEE's Housing Privatization Division, the Air Force has accomplished in 10 years through Housing Privatization what would have taken 25 years using traditional military construction, or MILCON, and saved the taxpayer billions in the process.

"The Air Force has privatized some 38,000 homes at 44 bases at a cost to the Air Force of $423 million, and brought in $6.4 billion in private funding to provide quality homes for our Airmen," said Mr. Smith.

In 2010, the Air Force and private sector project owners delivered an average of 530 new and renovated homes per month, in addition to providing community features like community centers, pools, sports courts, playgrounds and dog parks. These amenities help provide the thriving housing communities military members and their families have come to appreciate.

AFCEE, headquartered here, serves as the primary Air Force service agent for worldwide housing privatization efforts including completing feasibility analyses, developing project concepts and solicitations, and providing support to the integrated acquisition teams that execute projects.