Military Housing Privatization Portfolio Monitoring

ClientOffice of the Secretary of Defense
Service, ,


Hayat Brown team members helped the Office of the Secretary of Defense, Office of Facilities, Energy, and Privatization (OSD) develop and implement the program management platform for guiding and monitoring the performance of the federal government’s largest public-private partnership (P3) program – the Military Housing Privatization Initiative (MHPI) and the privatized lodging program.

Client Goals:

To comply with congressional reporting mandates and effectively implement Executive Branch regulatory requirements, OSD needed a reliable program management platform for providing policy, guidance, project approvals, and performance monitoring of the $30 billion MHPI and $3 billion privatized lodging portfolios. The MHPI portfolio consists of over 205,000 privatized homes for military families, representing over 100 individual P3 transactions located in almost every U.S. state and territory. The lodging portfolio consists of over 17,000 rooms in 42 locations in the continental United States, Alaska, Hawaii and Puerto Rico.

Hayat Brown Role: 

From July 2005 through March 2016, Hayat Brown team members developed and implemented OSD’s MHPI and privatized lodging portfolio management platform. We assisted OSD in developing the policy guidance and program standards for evaluating the financial feasibility, cost to the taxpayer, and risk sharing between the government and the private partner for each MHPI and lodging privatization transaction prior to its approval.

Our team evaluated each transaction against the standards and recommended approval, denial, or modification.  We developed a long-term operating and capital performance monitoring system based on over 80 key performance indicators (KPIs); evaluated of each MHPI transaction against the KPIs; and prepared the semiannual performance evaluation report to Congress. To evaluate potential government responses to distressed projects or projects recommended for expansion, we developed restructuring criteria and evaluated distressed and modified transactions against the criteria to determine the most cost-effective course of action for the government. The program and portfolio management platform created by our team will assist in the effective management and monitoring of the MHPI and privatized lodging program for years to come.

Project Outcomes:

The Military Housing Privatization Initiative has received national recognition as one of the most successful P3 programs in the country and serves as a model for institutions considering alternative delivering methods for infrastructure. By all measures, these 100+ P3 projects have improved the lives of over 200,000 military families by providing safe and affordable housing and ensuring that these projects maintain significant long-term cash flow to continue to invest in these home over the 50-year term of the agreement.

Department of Defense Military Housing Privatization Initiative