UPDATE: COBL Interested Parties Contact List, 18 FEB 2025 attachment

UPDATE: COBL Interested Parties Contact List, 12 FEB 2025 attachment

UPDATE: COBL Interested Parties Contact List, 13 Jan 2025 attachment

UPDATE: RFI # 2

THIS REQUEST FOR INFORMATION (RFI) IS FOR INFORMATIONAL AND PLANNING PURPOSES ONLY AND SHALL NOT BE CONSTRUED AS A REQUEST FOR PROPOSAL, REQUEST TO BE ADDED TO A BIDDERS LIST, INVITATION FOR BID, PROMISE TO CONTRACT, OR COMMITMENT OF ANY KIND ON THE PART OF THE GOVERNMENT. THE GOVERNMENT DOES NOT INTEND TO AWARD A CONTRACT SOLELY ON THE BASIS OF THIS RFI. THERE IS NO FUNDING ASSOCIATED WITH THIS ANNOUNCEMENT.

The Department of the Air Force (DAF) plans to privatize its transient lodging at all its installations throughout the United States, its territories, and possessions. Lodging operations on DAF installations are paramount to support the mission and for the continued resiliency of Airmen, Guardians, and their families. The DAF anticipates privatization will result in expedited renovations and/or construction of facilities, increased operational efficiencies, and a more consistent lodging experience for customers.  The facilities DAF currently envisions privatizing encompass approximately 17,000 rooms across 60 installations.  The Commercial On-Base Lodging (COBL) Program Management Office within the Air Force Installation & Mission Support Center (AFIMSC) is responsible for accomplishing this goal. 

This second RFI is a follow-on to the previously issued RFI.  The DAF has received great feedback to the first RFI and thanks all those parties who submitted responses.  Based on the responses received, as well as lessons learned on previous MHPI projects, the DAF is strongly considering including the following requirements in the Request for Proposals (RFP):

• The developer and the hotelier should form an exclusive teaming arrangement (i.e. the DAF will not entertain multiple proposals with the same hotelier but different developers, or vice versa)
• The hotelier must have a 3rd party relationship with the developer, and cannot be a vertically integrated entity or subsidiary of the developer
• The hotels must be direct managed by the hotel brand owner
• Renovated (to the greatest extent possible) and all new construction hotels should carry a national brand included on the Smith Travel Research North America Chain Scales in a category below Luxury and above Economy 
• Minimum Experience Requirements:
  • For the Developer, the DAF is considering a minimum experience requirement somewhere in the range of between $500M and $1B of completed development projects over the past 10 years, with at least three projects of greater than $50M in development costs.
  • For the Hotelier, the DAF is considering a minimum experience requirement of managing at least 16,000 hotel rooms and/or 120 hotels geographically dispersed across the United States. 

The DAF is making great progress on preparatory analysis and planning for the Group A solicitation.  The current anticipated schedule for Group A is roughly as follows:

• Spring 2025: Issue Draft RFP and host an Industry Forum
• Summer 2025: Issue Group A RFP
• Fall/Winter 2025: RFP Responses Due
• Spring/Summer 2026: Group A Award
• Summer 2026 – Winter 2027: Prepare environmental products. Finalize development plans, legal documents, and financing, etc.
• Winter 2027/2028: Close Group A
• 2029/2030: Decision on Acquisition Strategy for Group B

It should be noted as well that to streamline the closing process and set expectations on the position of the DAF, a draft Lease will be included as an attachment to the RFP.              

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The COBL office is interested in receiving any feedback or concerns you may have on any of the information included above.  Interested parties are not required to provide feedback on all or any of the bullets, and any responses provided will not impact any eventual evaluation of formal proposals submitted in response to a solicitation in the future. 

The DAF is also posting an updated list of interested parties.  If you wish to be added to the list, you may submit your contact information to the DAF, and we will post an updated list. 

Responses received by the DAF will be held in confidence. Responses may be provided via e-mail to the COBL Workflow: [email protected]

As a courtesy, to continue progress on this initiative, please submit your responses to this RFI by January 31, 2025.  Expressions of interest in this opportunity may be submitted at any time. 

Thank you for your interest.

UPDATE:

Update provides the following attached documents:

* Response to RFI#1 questions

* COLB ADC Presentation

* Interested Parties Contract List as of 31 Oct 2024

RFI # 1

THIS REQUEST FOR INFORMATION (RFI) IS FOR INFORMATIONAL AND PLANNING PURPOSES ONLY AND SHALL NOT BE CONSTRUED AS A REQUEST FOR PROPOSAL, REQUEST TO BE ADDED TO A BIDDERS LIST, INVITATION FOR BID, PROMISE TO CONTRACT, OR COMMITMENT OF ANY KIND ON THE PART OF THE GOVERNMENT. THE GOVERNMENT DOES NOT INTEND TO AWARD A CONTRACT SOLELY ON THE BASIS OF THIS RFI. THERE IS NO FUNDING ASSOCIATED WITH THIS ANNOUNCEMENT.

The Department of the Air Force (DAF) plans to privatize its transient lodging at all of its installations throughout the United States, its territories, and possessions. Lodging operations on DAF installations are paramount to support the mission and for the continued resiliency of Airmen, Guardians, and their families. The DAF anticipates privatization will result in expedited renovations and/or construction of facilities, increased operational efficiencies, and a more consistent lodging experience for customers.  The facilities DAF currently envisions privatizing encompass approximately 17,000 rooms across 60 installations. 

The Commercial On-Base Lodging (COBL) Program Management Office within the Air Force Civil Engineer Center (AFCEC) is responsible for accomplishing this goal. Based on prior Army success with the Privatized Army Lodging (PAL) program, the DAF intends to model this lodging privatization effort closely on the Army PAL program. Specifically, the COBL office intends to utilize the Military Housing Privatization Initiative (MHPI) authorities (10 U.S.C. §§2871 et. seq.) to lease the land and convey the buildings for a 50-year term.  The DAF will not be able to contribute any equity, make any Government Direct Loans, or make any loan guarantees to the project.  The DAF will also not be a member of the project LLC.  Although the DAF will not be allowed to retain an ownership interest in lodging projects, the DAF does still intend to engage in a comprehensive Portfolio and Asset Management program to provide oversight, ensure compliance, and protect the government’s interests.

The lease between the DAF and awardee will limit the nightly room rates of official travelers to no more than the lodging portion of per diem, as established by the government for each location.  The DAF may also choose to further limit the average percentage of per diem paid by official travelers across the portfolio on an annual basis at a percentage less than 100% of per diem.

The DAF seeks information on how the COBL effort can best ensure that official travelers are provided on-base hotel accommodations that meet industry standards for off-base lodging, meet private sector brand standards, and offer the benefits and amenities guests at off-base hotels experience, such as participation in loyalty programs associated with national brands. 

The DAF plans to privatize the lodging portfolio in at least two groups phased over several years.  The solicitation for the first group will include options that the DAF can exercise at its discretion to award subsequent groups. 

The COBL office is interested in receiving your feedback in several areas.  Interested parties are not required to provide answers to all or any of the questions, and any responses provided will not impact any eventual evaluation of formal proposals submitted in response to a solicitation in the future.  At a minimum, however, the COBL office encourages you to add yourself to the Interested Vendors List (IVL) to ensure you receive future updates if you are interested in this opportunity. 

RFI Questions:

1. Interested Party Information:

• Describe your organization’s specialties and capabilities related to this project and your specific interest in lodging privatization.
• Would you be interested in the Government releasing your contact information on an Interested Parties Contact List via a notice on this site for purposes of facilitating potential teaming, partnering, or contracting amongst the interested parties? If yes, please provide your Company Name, Point of Contact, Telephone Number, and Email Address for inclusion. 

2. Procurement:

• Please identify any suggestions regarding strategies for how the DAF should structure the transaction to maximize contributions to the project’s capital improvement reserve account while providing a quality lodging product that provides official travelers with on-base lodging options comparable to nationally branded chains available off-base within the rate limitations noted above.
• If a national brand portfolio were required to be part of an offeror’s proposed team, how would you satisfy this requirement?  This could include, but not be limited to, a) direct managed, b) through a franchise arrangement, c) a combination of a and b, or d) another arrangement (please describe). 

Responses received by the DAF will be held in confidence. Responses may be provided via e-mail to the COBL Workflow:  [email protected].    

As a courtesy, in order to continue progress on this initiative, please submit your responses no later than ~21 days after posting.  Expressions of interest in this opportunity may be submitted at any time. 

PLACE OF PERFORMANCE: CONUS, ALASKA and HAWAII

Thank you for your interest.