Cannon readies for housing privatization Published April 25, 2008 By Greg Allen 27th Special Operations Wing Public Affairs CANNON AIR FORCE BASE, N.M. -- An on-and off-relationship with housing privatization is once again "on" as the base moves forward with an Air Force-wide initiative to get the military out of the landlord business. Base team members met April 7 to learn and discuss the process that will change the role the base now currently plays in housing. By Sept. 30, 2009, the change will be complete. Marianne Long, project manager for Booz Allen Hamilton, a consulting firm that is overseeing the process, headed the meeting. Her role, she said, is to "support Cannon and get us from where we are now to where we want to be." Ultimately, 278 housing units (273 in Gemini and five in Mercury) covering 90 acres will be replaced by an expanded medical facility and a new recreational area. This will offset base housing from the railroad and meet force protection requirements. The remaining 293 units in the Mercury housing area, occupying about 95 acres, will be conveyed, or handed over, for civilian management. Ms. Long said Cannon officials will pursue having most of the existing homes demolished and new ones built. Joe Cannon Estates and Chavez areas will convey 953 existing housing units. Major renovation will be done to 250 Chavez Manor units, which will include new roofs, utility systems, single-car garages, fencing, and interior work. Repairs and minor renovations that include new appliances, heating and air conditioning systems, and fencing will be made to the 361 Chavez Manor West units after conveyance. The 350 leased "801" units in Clovis and Portales are not affected by the privatization move. The earliest that Cannon can expect newly constructed housing available for military families is 2011 said Ms. Long. That is based on the assumption that the developer will complete the Chavez Manor home renovations first and get those 250 units leased as soon as possible. Cannon will group with McConnell Air Force Base, Kan. and Seymour Johnson AFB, N.C., into one housing privatization contract/partnership. The total value is estimated at more than $250,000,000. Most of the renovation and new construction will be done at Cannon. Privatization is hardly a new concept for many base personnel. Tim Farmer, housing flight chief, said privatization efforts were under way here from 2002 to 2005. Just as the final touches were being done, the Base Realignment and Closure commission selected Cannon for closure, effectively squelching the project. The biggest difference between what was done then and what is being done now, said Mr. Farmer, is that, "In 2002, Cannon was a stand alone project. Now we are grouped with two other installations." This, and simplification of the process which went from a Request for Proposal approach in 2002, to a Request for Qualifications (RFQ), will speed up the process. "It will help potential project managers because it can cost them upwards of $700,000 to submit a Request for Proposal package," said Mr. Farmer. An RFQ does not mandate those things that are costly when putting a package together. Once privatization is complete, Airmen who live in the housing area will receive Basic Allowance for Housing. The property manager will receive the BAH and will be responsible for maintenance and upgrades. Utility meters will be installed and after a period of usage metering, Airmen will receive an amount based on an average utility usage. They will then be billed for gas and electricity. If their usage is below the average, they will receive a rebate for the difference. If they exceed the average, they will pay the difference out of pocket. Mr. Farmer says that Cannon's housing, after demolition, renovation and new construction, will number about 1,000 units. Privatization, said Ms. Long, will provide Airmen and their families access to safe, quality, affordable, and well-maintained housing in a military community where they choose to live.