1. Principal Deputy Assistant Secretary of the Army
(Installations and Environment)
Mr. Geoffrey Prosch F
Professional Housing Management Association
San Diego, CA
2 February 2006

2. TODAY’S AGENDA Transformation of Army Installations
Modularity and the Restationing Plan
BRAC 2005
Privatization

3. ASA (I&E)
3E464

4. ARMY GOALS Win the War Transform The Army
Secure Resources to Accomplish the Above

5. - Secretary of the Army Dr. Francis J. Harvey
TRANSFORMATION
“As the Chief (GEN Schoomaker) likes to say, the Soldiers are the centerpiece of our formations so nothing can be more important than a Soldier; nothing can be more important than the family.
I will put a lot of focus on their well-being throughout my tenure”
- Secretary of the Army Dr. Francis J. Harvey

6. - Chief of Staff of the Army General Peter J. Schoomaker
TRANSFORMATION
“A rapidly changing world deals ruthlessly with organizations that do not change . . .
We must constantly reshape ourselves to remain relevant and useful members of the joint team”
- Chief of Staff of the Army General Peter J. Schoomaker

7. SYNCRONIZATION

8. INSTALLATIONS AS FLAGSHIPS
Support an expeditionary force where Soldiers train, mobilize, and deploy to fight and are sustained as they reach back for support.
Develop strategies to posture installations as deployment platforms with robust reach-back capabilities.
Adjust installation support to meet the needs of an Army at war and transforming.
Support well-being of all Soldiers and their families.
SOLDIERS AND FAMILIES DESERVE THE SAME QUALITY OF LIFE AS IS AFFORDED THE SOCIETY THEY PLEDGE TO DEFEND

9. Assistant Secretary of the Army (Installations and Environment)
IMA LEADERSHIP INTENT
Provide corporate structure focused on
installation management to …
Support and enable mission commanders
Eliminate migration of base support funds
Achieve efficiencies; increase effectiveness
Provide common standards means and methods to manage installations
Lead Army Transformation
Installation Management Board of Directors
(IMBOD) gives strategic guidance
Assistant Secretary of the Army (Installations and Environment)

10. What the Current Force Looks Like
The Army Division = traditional building block
But…
Optimized for major land campaigns against similarly organized forces
Large, fixed organizations with interconnected parts
Requires extensive reorganization to create force packages
Limits Regional Combatant Commander’s ability to mix and match packaged capabilities for multiple missions
Limited joint connectivity
= ~15,000 Soldiers & Equipment
(typically over 20,000 when deployed)
DIVISION XX
We’re good, but we can be better…

11. Standardized Brigade Designs Active and Reserve Components
Supporting brigades with standard headquarters, but variable subordinate units X
Maneuver
Enhancement
Standard maneuver brigades with organic combined arms capabilities
Stryker
FCS
Future
Heavy
Battlefield
Surveillance
Aviation
Fires
Sustainment
SUST
Infantry
(Less than 4,000 Soldiers in each Brigade)

12. Army Modular Force
Division-centric force
Not optimized for independent operations
Share divisional support forces
Brigade-centric force
Capable of independent operations
Capabilities to facilitate joint operations across the full spectrum
2004
2010
Active Component 33
30%
increase 43
Reserve Component 15 + 23 34
15 Enhanced Separate Brigades of comparable readiness to AC
23 other Brigades at lower levels of readiness, not readily available
34 BCTs organized, manned, and equipped like similar units in AC
More capable and ready, thus available units
60%
increase 48 77
New force mix/size provides ability to:
Sustain long-term commitments
Surge for larger, shorter-term contingencies
Better manage force stress

13. Korea
Active Component Division & Brigade Combat Team Stationing & Flag Designations
Germany
Italy
Ft Lewis
Ft Drum
Ft Carson
Ft Riley
Ft Knox
Ft Campbell
Ft Irwin
OPFOR Unit
Ft Bragg
Ft Benning
Ft Bliss
Ft Polk
Ft Wainwright
Ft Stewart
Ft Hood
Ft Richardson
Legend
Division HQ 1
Brigade (BCT)
Schofield Barracks
STRYKER BCT

14. The Army’s BRAC Strategy
Establish a streamlined portfolio of installations with a significantly reduced cost of ownership that:
Facilitates transformation, joint operations and joint business functions
Accommodates rebasing of overseas units with the Integrated Global Presence and Basing Strategy
Divests of an accumulation of installations that are no longer relevant and are less effective in supporting a Joint and Expeditionary Army

15. Army & JCSGs - Strategic Objectives
Operational Army
Reserve Component
Institutional Training
Headquarters and Other Support Activities
Materiel & Logistics
Research, Development, Acquisition, Test & Evaluation
Army and JCSGs determined key objectives in various functional areas; a sample of which are shown here and on the next slide.
These strategic objectives that became the basis for developing ideas and proposals that supported achievement of the objectives

16. Summary of Results
13 Army and 387 Reserve Component installations closed
211 ARNG facilities
176 Reserve facilities
7 leased complexes closed
37 Active and 49 Reserve Component installations realigned
Creates $1.4B in annual savings and $2.4B with recurring savings from overseas
This BRAC costs nearly 3 times the Army’s last 4 BRAC rounds and generates twice the gross savings, 4 times more including overseas
13 installations, 387 Reserve Component facilities and 7 leased sites closed

17. RESIDENTIAL COMMUNITIES INITIATIVE
1,823 FORT CARSON HOUSES TRANSFERRED TO PARTNER NOV 1999

18. Residential Communities Initiative (RCI)
RCI PLAN INSTALLATIONS (34 PROJECTS)
82,517 Houses; 92% of Army Family Housing in U.S.
1st 35 Installations -- $804M Govt Equity = $9.5B Initial Development (12 to 1 leverage; OSD goal is >3 to 1)
27 Installations (20 Projects) Transferred (64,089 Houses)
Ft Carson, CO - Nov 1999
Ft Hood, TX - Oct 2001
Ft Lewis, WA - Apr 2002
Ft Meade, MD - May 2002
Ft Bragg, NC - Aug 2003
Pres of Mont-Naval PS, CA - Oct 2003
Ft Stewart-Hunter AAF, GA - Nov 2003
Ft Campbell, KY - Dec 2003
Ft Belvoir, VA - Dec 2003
Ft Irwin-Moffett FAF-Parks RFTA, CA - Mar 2004
Ft Hamilton, NY - Jun 2004
Walter Reed AMC, DC / Ft Detrick, MD - Jul 2004
Ft Polk, LA - Sep 2004
Ft Shafter / Schofield Brks, HI - Oct 2004
Fts Eustis-Story, VA - Dec 2004
Ft Leonard Wood, MO - Mar 2005
Ft Sam Houston, TX - Mar 2005
Ft Drum, NY - May 2005
Ft Bliss, TX-White Sands MR, NM - Jul 2005
Ft Benning, GA - Jan 2006
8 Installations (7 Projects) Awarded (10,635) - Est Transfer
Ft Leavenworth, KS - Mar 2006
Ft Rucker, AL - Apr 2006
Ft Gordon, GA - Jun 2006
Carlisle Brks, PA-Picatinny Ars, NJ - May 2006
Ft Riley, KS - Aug 2006
Redstone Ars, AL - Oct 2006
Ft Knox, KY - Jan 2007
- Army’s goal is to eliminate all inadequate family housing by using; (1) Traditional Military Construction, (2) Increase Basic Allowance for Housing (BAH), and, (3) Privatization.
- Privatization, or RCI, is the cornerstone of this goal.
- This chart shows Army’s Residential Communities Initiative (RCI) Program for privatizing military housing in the U.S. Over 92% of the Army’s U.S inventory will be privatized by 2010.
- RCI program allows Army to leverage assets and obtain private sector expertise, creativity, innovation and capital to fix housing
- To date, Army has successfully privatized close to 54,000 housing units at 23 locations shown in the box located at the top left hand corner of the slide. By April 2006, another 9 installations will be privatized. The remaining 13 are in various stages of procurement or development.
7 Installations (6 Projects) In Solicitation or Under
Development - Est Transfer (7,144)
Ft Lee, VA - Sep 2007
West Point, NY - Mar 2008
Ft Jackson, SC - Sep 2008
Ft Huachuca-Yuma PG, AZ - Feb 2009
Aberdeen PG, MD - May 2009
Ft Richardson, AK - Mar 2010
1 Installation (1 Project)
Pending Approvals (649)
Ft McNair, DC - Mar 2007
Ft Drum Phase II Construction
Ft Irwin Phase II Construction
Ft Bliss Phase II Construction

19. Construction For Modularity
Modular buildings at Fort Drum
Fort Drum
Company Admin Building
Fort Drum
Admin office
Fort Drum
Supply Room/Arms Room

20. Utility Privatization Program
UTILITIES PRIVATIZATION STATUS
US:
351 systems
266 completed
111 privatized
155 exempted
85 underway
Europe:
589 systems
232 completed
232 privatized
0 exempted
remaining
Japan and Korea
128 systems exempted
0 privatized

21. Privatization of Army Lodging
Installation lodging facilities suffer from chronic under-funding
More than 80% require either major renovation or replacement
Estimated cost to upgrade is $1B+
PAL seeks to to revitalize installation transient lodging through partnerships with the private sector
Same legislative authorities as RCI
Obtain private sector expertise, creativity, innovation, and capital
PAL is consistent with Leadership direction to transfer non-core functions to the private sector
The magnitude of inadequate lodging facilities in the Army is a result of a conscious decision to not provide the authorized appropriated fund support combined with a methodology for setting room rates that did not support recapitalization.
We can’t solve a problem this big and complex by ourselves in an acceptable period of time. We simply don’t have the funding or the expertise.
Privatization provides access to private sector capital and partners with a proven track record in the industry
Timing of first project is such that we will be in negotiations when the BRAC list is scheduled to be published, giving us added flexibility to mitigate impact.

22. “SERVICE IN A CHANGING LANDSCAPE”
Housing Hot Topics
“SERVICE IN A CHANGING LANDSCAPE”
Unaccompanied Personnel Housing (UPH)
Modern Facilities
Centralized Barracks Management
Privatization?
Housing Services Office (HSO)
Approximately 75% of soldiers and families reside in local communities
More accurate information available, prior to arrival at new duty station
Training our employees for the future

23. Office of the Assistant Secretary of the Army (I&E) and
The Association of the United States Army
We invite you to join us as we present:
“Installations as Flagships of Army Readiness ”
at the AUSA Army Installation Symposium
3 April – 6 April 2006,
Kansas City Convention Center
A great interactive opportunity for Civilians, Military, Contractors, Business and Industry!

24. What have you done for our Soldiers today?

25. QUESTIONS