1. 1 How to Create “Win-Win” Resolutions That Promote Good Working Relationships and Future Successful Negotiations With the Department of Defense presented by Harry H. Kelso, PLLC 13648 Horselydown Lane Richmond, VA 23233 (804) 364-3970 FAX (703) 995-0707 E-Mail: HarryKelso@Earthlink.Net

2. 2 I.“Structural Plate Tectonics” Drivers Forcing DoD to Change its Institutional Mission: -- a/k/a “DoD's Corporate Turnaround” -- A.Pre-20 th Century U.S. Military Industrial History: The Domestically-Focused Military B.20 th Century Military and Nuclear Legacy: Domestic Training for an Internationally-Focused Military C.Modern (Post-World War II) Societal Concerns: Shift from National to Individual Focus D.Emerging Recognition of Long-Term Effects from Deterioration of Military Infrastructure E.Era of Tight Federal Budgets and Deficit Spending: Demands for Accountability and Less Military Spending F.Recognized Need for Fresh, “Corporate Turnaround” Approach

3. 3 I.“Structural Plate Tectonics” Drivers Forcing DoD to Change its Institutional Mission (Cont’d): G.Base Closure Déjà Vu:  Base Closures authorized in 1988 and 1990 laws  Clinton and Bush Administrations have sought additional base closures  Base Closures are not recent developments: I have to again ask attention to the necessity of legislation to authorize this Department to sell useless military sites. Two statutes have been enacted for this purpose, but neither, according to the contemporaneous construction given them, is applicable to the large class of cases that now embarrasses the Department. Secretary of War Jefferson Davis Report to the President Congressional Globe December 3, 1855

4. 4 II.Building Effective, Comprehensive Negotiating Teams: “Know the Defense Department's Needs Better Than The Defense Department” A.Four Baseline Points for Winning 1. Recognize that at closed military facilities, DoD priorities are typically different – even potentially in conflict – with those of the state, community, and private sector. Essentially, closed facilities are not part of DoD's central mission. 2. Entities dealing with DoD regarding closed or closing military facilities must be fluent with multiple – and often varying -- * DoD missions and critical needs * DoD “foreign languages” * DoD cultures * DoD players 3. Creating a “Win-Win” approach to DoD requires cohesive commitment from the top officials of all stakeholders.

5. 5 II. Building Effective, Comprehensive Negotiating Teams (Cont’d): 4. Recognize that winning solutions - for both yourself and DoD - requires comprehensive preparation on the multitude of different issues. B. DoD and Service Challenges C. Expertise Required 1. Department of Defense 2. Civilian Federal Agencies 3. State and Local Governments * Zoning and Land Use * Community Infrastructure / Public Utilities 4. Private Sector * Real Estate * Environmental * Public and Human Health * Financing * Insurance

6. 6 III.Innovative Approaches To Obtain Results with the Pentagon: “Thinking 'Outside the Box'” to Solve Complex Problems” Example: The Pentagon Renovation

7. 7 IV.Pressure Points and Most Productive (and Least Productive) Tactics When Dealing with the Pentagon:  Implications to Specific Site  Implications to Community and State  Implications to DoD  Implications to Other Federal Government Agencies  Implications to Congressional Committees  Implications to Other States and Local Governments  Implications to Private Sector and NGOs

8. 8 V.Successful Tactics for High Profile or Politically-Sensitive Cases: Tailor Your Objectives to Become the Catalyst for DoD Solving Its Challenges “3 Track Process for Success”  Legal  Technical  Political Avtex Fibers Plant, Front Royal, Virginia

9. 9 VI.Case Study: the Fort Pickett Closure and Reopening with Expanded Economic Growth: The Strategy Virginia Governor George Allen's Team Employed to Obtain a New, Expanded Economic Engine From a Closing, Deteriorating Base BRAC Fort Pickett, Virginia 45,000 acres