ARLINGTON, Va. (AFNS) – In an effort to ensure a sustainable lodging business model, the Department of the Air Force has decided to pursue commercialization of its lodging program within the United States, its territories, and possessions.
In 2023, DAF leadership completed an in-depth analysis of the DAF lodging program and determined the best way to sustain it is through commercialization.
With a portfolio of many facilities at or approaching expected service life, new construction and renovation is now needed at many locations to meet the needs of official travelers.
In Fiscal Year 2019, the DAF completed an Office of the Secretary of Defense requirement to transition to a 100% non-appropriated fund model for DoD lodging programs. DAF lodging previously operated under a combination of non-appropriated and appropriated funds.
Based on data gathered under the current non-appropriated fund lodging business model, lodging operations do not generate sufficient revenue to meet recapitalization requirements to sustain lodging for the long-term.
“Commercialization will leverage industry standards, allowing us to be more responsive to evolving market and consumer demands,” said Alex Wagner, Assistant Secretary of the Air Force for Manpower and Reserve Affairs. “We have a responsibility to ensure that Airmen, Guardians, and their families have the best experience possible when they stay in lodging located on DAF installations.”
The DAF anticipates commercialization will result in increased operational efficiencies leading to cost savings and a more consistent lodging experience for customers. Commercial partners will also be able to quickly raise financing to fund additional construction and renovation work across the portfolio, further increasing the quality of lodging for official travelers. In addition, commercial on base lodging will enable the lodging operations to be more responsive to developing technology, innovations, and traveler needs.
In approaching this effort, DAF took note of the successful Privatized Army Lodging (PAL) program, which provides a proof of concept and lessons learned. Since the first installations in the Army PAL program were privatized in 2009, the Army has seen over $1.2B in development. This included 40 new and renovated hotels, resulting in greatly improved guest satisfaction scores across the program.
The transformation will be a multi-year effort and the DAF will continue to work with employees and customers as the lodging portfolio is commercialized. As part of this effort, the DAF is actively seeking industry interest and input into the acquisition effort. DAF recently posted a Request for Information (RFI) on the federal government procurement website, SAM.gov, where industry members can register to receive updates on the acquisition as it progresses as well as provide recommendations to the DAF. Parties interested in this opportunity should register at: [https://sam.gov/opp/8de4826b8f8f4388bcd08454cbcc026a/view]
