2000 NCPPP Project Award Winner
Project Location: Lackland Air Force Base, Texas
Public Sector Partner: United States Air Force
Contact Name: Captain Kathryn Kolbe, 210.652.4126
Private Sector Partner: Landmark Organization Incorporated
Contact Name: Bob Name, 555-555-5555

Project Summary

Originality – Innovative Concept
The Lackland privatized housing project concept developed over a two-year period and centered around several authorities enacted with the 1996 legislation. This project was the first within the Department of Defense to use these authorities successfully to award a housing privatization project and has blazed the path for other military housing privatization partnerships. The Lackland privatization concept is innovative because it minimizes developer risk construction quality risk and operations and maintenance risk, for both partners. A rigorous source selection process was used by the Air Force to select an offer based upon best value, not lowest cost, by considering a favorable business proposal along with the strong financial health of the developer. The source selection process also had numerous checks and balances by senior advisors and expert private sector consultants. In order to minimize construction risk, the Air Force provided minimum standards for evaluation of acceptability of the offeror’s proposal in a Request for Proposal. The ground lease also contains provisions permitting extensive inspection, on behalf of the government, during the construction. The Request for Proposal also specifies that a prototype model home be completed for each type of unit showing the standards of construction to provide benchmarks for future construction. Since this housing development is privately owned, operated and maintained and partially privately financed, maintaining maximum occupancy by offering well-maintained, desirable units to generate cash flow and profit is a strong motivator. The project was structured to help achieve a long-term partnership between the Air Force and the developer emphasizing performance and commitment. The Air Force is applying these same principles to over 20 housing privatization partnerships planned over the next ten years.

Quality – Design Improvements or Superior Products/Services
The overarching benefit of the Lackland Air Force Base privatized housing partnership is that over four hundred top notch quality housing units are being provided to Air Force enlisted personnel years faster and at a fraction of the cost traditional military construction. It is abundantly clear that the newly constructed homes provided by Landmark Organization are a significant improvement to the homes which Air Force members were previously assigned. The Lackland privatized housing has many superior amenities to traditional military housing. For the enjoyment of all of the Frank Tejeda Estates residents, the housing area has an attractive leasing office, which can be used for resident gatherings, a beautiful pool, tot lots, jogging trails and basketball and tennis courts. The individual homes are all equipped with garages, microwaves and ceiling fans, are attractively landscaped and are equivalent in size to what military members can afford in the local market. Landmark Organization also has a dedicated, responsive property management and maintenance staff who have set up a self help program for residents to beautify their homes. Air Force enlisted members are anxious to move into Frank Tejeda Estates and those who live in the establishment are extremely impressed.