Air Force Selects an Offeror to Privatize Housing at Keesler AFB

  • Published
  • By 010810
The U.S. Air Force announces that it has selected Forrest City Military Communities, LLC (FCMC) as the Highest Ranked Offeror (HRO) in its effort to privatize military family housing at four installations in the continental United States: Shaw AFB, SC; Charleston AFB, SC; Arnold AFB, TN; and Keesler AFB, MS. The Air Force Southern Group Housing Privatization (HP) Project, a deal valued at $291 million in development costs and will demolish and build hundreds of housing units over the next four years.

Under the deal, the Air Force will lease 316 acres of land at Keesler AFB as part of a 50-year transaction and convey 1188 existing housing units and other improvements to FCMC. At the four installations combined, the Air Force will lease a total of 846 acres of land and convey 2,387 existing housing units. At the other group bases FCMC will by the end of the three-year initial development period, demolish 972 existing inadequate housing units and construct 770 new housing units. FCMC will continue to operate and maintain a portfolio of 2,185 housing units across the four bases for a 50-year term.

On 21 May 2010, the Air Force selected FCMC as the HRO on the Southern Group Housing Privatization Project through a competitive solicitation process led by the Air Force Center for Engineering and the Environment, headquartered at Lackland AFB in San Antonio, TX. "We feel that FCMC offers the most advantageous business case to address quality development, long-term sustainability, competitive financing, and the construction timeline for the bases in the Southern Group Project" said Mr. Eddie Richards, Booz Allen Hamilton, Keesler's HP Contracted Project Manager, 228 376-8622.

Assuming the Air Force and FCMC reach successful closing, in early 2011 the existing houses at all four installations will become property of FCMC who will own and operate the rental housing development for military families. They will finance, plan, design, and construct improvements in the development and maintain the housing units the duration of the 50-year lease period.

The Air Force's housing privatization effort has been successful at 44 installations in the continental United States with almost 70% of family housing being privatized, totaling approximately 38,000 units. Housing Privatization has eliminated nearly 35,000 inadequate units Air Force-wide and is providing an average of 500 new and renovated homes per month. In 2009, 4,087 new homes were built and 2,654 were renovated. Beyond the Southern Group Project, the Air Force is looking to privatize approximately 14,000 additional units at 18 installations over the next two years. The Military Housing Privatization Initiative, originally authorized by Congress in the FY 1996 National Defense Authorization Act, has given the Air Force the ability to partner with the private sector development community to provide quality homes for Airmen and their families faster than traditional Military Construction Programs. For general information regarding the Air Force Housing Privatization program, please visit:

Eddie Richards
Booz Allen Hamilton
Keesler's HP Contracted Project Manager
228 376-8622

Allen Fennigkoh
210 536-5796