AFCEC Europe Division recoups $4.3 million

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  • By Air Force Civil Engineer Center
  • Public Affairs
RAMSTEIN AIR BASE, Germany --  Two residual value settlements negotiated by the Air Force Civil Engineer's Center Europe Division recently returned $4.3 million to the U.S., saving taxpayer money and providing much-needed funding to the Air Force.

To celebrate the settlements, Anthony Duno, U.S. Air Forces in Europe lead residual value negotiator, presented two oversized checks representing the RV recoupment to Col. Stephen E. Shea, USAFE Civil Engineer, on Jan. 29. The money will go toward future construction, maintenance, repairs and environmental compliance projects at USAFE installations. Nearly $2.4 million was paid directly to USAFE and $1.9 million went to the U.S. Treasury.

The AFCEC Europe Division Environmental and Real Property Branch, part of the Facility Engineering Directorate, has been leading RV negotiations and settlements throughout the USAFE area of responsibility since the first overseas closures in 1990. RV is the only way to obtain reimbursement from host nations for any type of U.S. investment. Over the years, the RV program has resulted in an overall return of investment of more than $260 million, said Tonda Sallee, realty specialist.

Residual value settlements are negotiated with host nations when U.S. funded facilities are returned. These settlements were for military family housing buildings in the United Kingdom, and Tactical Leadership Program buildings at Florennes Air Base, Belgium. In addition to saving the Air Force money, recouped funds paid directly to USAFE boost employment for host nations because it will be spent in the countries generated.

"RV negotiations are lengthy and highly influenced by politics, economics, facility type, economic or military follow-on use, and net proceeds of sale," Duno said. "Negotiations are conducted at the appropriate host nation ministerial level (and) an average of eight years is required for the host nation to market and sell a U.S.-funded facility or installation."

Negotiations are often challenging and negotiating residual value in Europe right now is especially difficult, said Kenny Johnson, chief of the Europe division's environmental branch. A weak economy, budgetary deficits, and a reduction of host country military forces and closed installations have led to facilities with little or no residual value potential.

Despite these challenges, the skill and experience of Duno and the AFCEC team led to a win-win result for the U.S. and the host countries, Johnson said.

"(Duno's) diplomacy, ingenuity, tactfulness and knowledge of the local customs were essential to the success of the RV negotiations," he said.

In addition to RV negotiations, AFCEC's Europe Division provides centralized design and construction, environmental and real property program management, and support to USAFE installations, other U.S. services in the European theater, and interacts with NATO and Host Nations. For more information about AFCEC, visit www.afcec.af.mil.