Sustainment Services
Sustainment Services represent the financial and operational support provided by the program to the Portfolio and Asset Managers. These services enable the Asset and Portfolio Management team to ensure project and portfolio success by proactively mitigating risk and addressing project issues. Sustainment services begin at transaction closing and continue through the duration of the Project. Sustainment services are categorized by Quarterly, Annual, and Ongoing/Other Activities.
Sustainment Services Framework
The table below is a sample annual reporting schedule for the Sustainment Services that occur periodically. Click on the Deliverable titles in the table below to read descriptions and access examples of each service.
Notional Annual Deliverable Schedule
Deliverable
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Budget Review
Once annually (Actual timing varies for each base)
Compliance Testing
Insurance Review
Once annually (Actual timing varies for each base)
Lockbox Review
PEP Report
Project Report
Site Assessment
Once annually (Actual timing varies for each base)
Click on the links below to read descriptions and access examples of each service.
Asset Management Training
The Asset Managers Training provides a comprehensive review of the Portfolio and Asset Management Program. This course is designed to familiarize participants with the utility and benefits of AFCEE's Portfolio Management Tools and to provide an in-depth understanding of AFCEE's processes, people, and services. To request this training, contact HQ AFCEE/HDPA.
Funding: This course is funded by Air Staff through a contract with AFCEE. Prerequisites: Staff members within the 1st or 2nd tier of the Base-level Asset Management Hierarchy represent the primary students for this course. Other candidates may apply, but are subject to the approval of the Housing Operations Program Manager and the constraints of the course. Students must have previously attended one of the following courses:
University of Maryland Asset Manager's Training Course
Lessons Learned Workshop
Housing Privatization Workshop
Air Force Housing Privatization Workshop
Two workshops (AFCEE Housing Privatization Workshop and Lessons Learned Workshop) were combined into the Air Force Housing Privatization Workshop, designed to capture the best practices and lessons learned across the Air Force portfolio. Participants are encouraged to attend one of three tracks for the workshop depending on the participant Project's development in the phases of the Privatization Services Life-cycle. Track 1 focuses on Transition Assistance and covers the Project Development Team (PDT) through Acquisition Support Team (AST) milestone. Track 2 addresses the Project closing and covers the notification of the selected offerer through transaction closing. Track 3 focuses on post-closing activities and covers the latest tactics, techniques, and procedures being used by peers to maximize the potential of current projects in the Portfolio. For additional information and to register for the workshop please access the Air Force Housing Privatization Events Web site. Funding: The attendee's unit is responsible for funding this course
Initial Development Period (IDP) Visits
The IDP Visits provide an opportunity for the asset level stakeholders to engage Portfolio Management resources in addressing and resolving development, construction, financing, or operations issues during the initial development period. IDP visits should be coordinated by the base or the AF portfolio liaison and should include representatives from all parties involved in the area of focus for the visit.
MRC Visits
MRC (Management Review Committee) visits coincide with quarterly MRC meetings. The MRC Visit provides an opportunity for asset level stakeholders to engage AFCEE resources in conducting base leadership briefings, reporting, and issue resolution. MRC Visits should be coordinated through the AF Portfolio Project Manager.
Project and Portfolio Quarterly Reporting
Two types of reports are produced each quarter: project-level reports that review each project individually and a portfolio-level report that provides aggregate information for all projects across the portfolio. These reports convey project financial, development, and operational health and performance. Project-level reports are suitable for readers from the Housing Office to the Installation Commander and MAJCOMs, while portfolio-level reports may be suitable for readers at the Air Staff and ESG levels, as determined by the Air Force.
Compliance Testing
Compliance testing is a quarterly assessment of stakeholder compliance with the obligations and responsibilities mandated in transaction legal documents. The Installation is given an initial Compliance Testing Checklist as part of Start-Up Services. Installation staff maintains responsibility to ensure compliance for items assigned to the base. AF Portfolio Project Managers are primarily responsible for assessing compliance on items related to Lockbox Administration, government direct loans and guarantees, and legal items not assigned to the installation for oversight.
Lockbox Reporting
Following transaction closing, a Lockbox Administration Tool is created, including a step-by-step analysis of how funds flow through the "Cash Flow Waterfall" in accordance with the Lockbox Agreement. This tool is customized for each base and used to independently verify the Lockbox Account balances for the projects on a monthly basis by the AF Portfolio Management team. The verification includes an analysis of each deposit to the Lockbox accounts according to the Lockbox waterfall stated in the Lockbox Agreement. The analysis reveals whether the correct amounts have been deposited and ensures transparency into Lockbox Agent funding activities and maintenance of Lockbox Accounts. The monthly Lockbox Report identifies discrepancies and assists in the resolution process.
Budget Reviews
The annual budget review is a comprehensive financial analysis of the proposed budget as submitted by the Project Owner in accordance with the transaction documents. The budget is benchmarked against prior year actual financials, pro forma financials for the coming year, and other similarly scoped projects to identify significant variances. A detailed analysis is completed by the AF Portfolio Management Team working with the installation, and recommendations for approval of the budget are provided.
Insurance Reviews
The annual insurance review is a comprehensive analysis of Project insurance coverage and policies for compliance with the transaction documents conducted by a commercial insurance expert as part of the AF Portfolio Management Team. Project Owners and asset managers are notified through the insurance review process of identified discrepancies. Discrepancies are tracked by Portfolio Management until resolved via re-submittal of insurance certificates and policies until all conditions are met.
Program Evaluation Plan (PEP) Reporting
The PEP provides the Office of the Secretary of Defense (OSD) with a high level summary of all military privatization projects. The Program Evaluation Plan (PEP) is a semiannual assessment of key housing privatization program metrics including occupancy, maintenance, financial performance, and construction progress. The PEP report consists of the Fact Sheet, Monitoring Matrix, and Project Summary Report. The Fact Sheet defines Project financial and development terms. The Monitoring Matrix includes occupancy rate, construction progress, military referrals, and move-ins. The Project Summary Report provides a narrative report of Project Activity for the period.
Document Management and Control The AFPACES (Air Force Portfolio & Asset Control & Evaluation System) portal serves as the repository for the majority of Asset and Portfolio-related reports, legal documents, and important documentation. The portal is regularly maintained and updated to ensure the most current data is available. Stakeholders will be trained on AFPACES as part of the Start-Up services.
Expert Real Estate Financial Analysis
Projects often experience a myriad of conditions, changes, and performance issues that require in-depth financial analysis. Expert real estate financial analysis includes evaluation and re-forecast of Project closing pro formas, analysis of financial/construction/operational changes to the asset, and assessment of Project financial health in anticipation of proposed capital improvements and renovation. Asset level stakeholders should coordinate with the AF Portfolio Project Manager if they feel further analysis is necessary at any time.
