Air Force selects an offeror to privatize housing for Western Group bases

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MALMSTROM AIR FORCE BASE, Mont. --  The Air Force has identified Balfour Beatty Communities, LLC, or BBC, to privatize military family housing for three Air Force Global Strike Command bases and one Air Combat Command base that make up Western Group. Those bases include Beale AFB, Calif.; F.E. Warren AFB, Wyo.; Whiteman AFB, Mo.; and Malmstrom AFB, Mont. The deal, valued at more than $330M in development costs, provides new and renovated housing for 3,264 military families. Malmstrom's portion of that total is more than 1,000 units including ones that are currently vacant or unoccupied due to renovations.

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

Under the deal, the U.S. 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 approximately 700 new and 2,000 renovated homes to be completed in five years.

"We're excited to partner with BBC," said Brig. Gen. (Sel) Anthony Cotton, 341st Missile Wing commander. "Quality of life for our Airmen and their families is very important to us. We expect nothing less than high quality support as we embark on this partnership."

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

In 1996, Congress created the Military Housing Privatization Initiative, or MHPI, 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, AFCEE 's Deputy Division Chief at for Housing Privatization, the Air Force has accomplished in 10 years through housing privatization what would have taken 25 years using traditional MILCON, and saved the taxpayers billions in the process.

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

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

"This announcement of who has been awarded the contract is just the first step in the process," said Larry Boggs, 341st Civil Engineer Squadron housing manager. "It will take some time now to plan and execute the conversion, and there are many details to be worked out at this early stage."

More information on housing privatization in general is available at http://www.afcee.af.mil/resources/housingprivatization/index.asp or e-mail HPinfo@us.af.mil.