Capital Planning Definition, Goals, and Objectives
The Capital Repair and Replacement Plan is a long-range forecast of capitalized costs that will be incurred to improve, repair or replace project assets. These forecasts are based on the useful lifespan and estimated cost of building components. The money to fund capital projects is disbursed from the Replacement Reserve lockbox account, which is funded throughout the life of the Project. Capital Planning and Evaluation plays an integral role in ensuring the long-term physical condition of the Project is maintained and the goal of providing quality housing to Air Force members and their families continues to be achieved throughout the 50-year life of the project.
Roles and Responsibilities
The Portfolio Management Team analyzes and recommends approval of any revised or updated CR&R plans. Additionally, the Portfolio Management Team verifies all transfers to and from the Replacement Reserve account. Asset Managers assist in reviewing revised or updated CR&R plans and facilitate their approval. Additionally, Asset Managers are responsible for facilitating the Air Force approval of Replacement Reserve account disbursement requests for CR&R projects.
Process and/or Metrics
The CR&R Plan is reviewed annually in conjunction with the budget review. The Portfolio Management Team includes the CR&R account balance information in the lockbox reports and quarterly project reports. Account balances are compared to pro forma expectations, while disbursement amounts are compared to the scheduled costs that are forecast in the CR&R plan.
