Highlights:
Validating Investments in Quality of Life Facilities for the Navy.
Client Goals:
CNIC manages and maintains all of the Navy’s shore installations, with the primary goal of supporting fleet readiness. When regional and installation commanders submit requests for funding for the renovation of existing buildings or the construction of new facilities, CNIC must prioritize which projects receive funding and which must be delayed or denied. CNIC’s tool for accomplishing this project-by-project examination is the Project Validation Assessment (PVA).
Hayat Brown Role:
The Hayat Brown team has traveled to Navy installations worldwide to conduct PVAs. Each PVA consists of in-depth research into the proposed project, a site visit involving interviews with project sponsors and patrons, project programming and costing, economic and lifecycle cost analysis and the preparation of a final report with a recommendation. Depending on the project type and its criticality within CNIC’s real estate portfolio, CNIC assigns certain financial hurdles that the investment must meet in order to be considered for funding. The Hayat Brown team developed a pro forma for each PVA to provide assumptions for CNIC’s lifecycle cost model. We then summarized its findings in a report and presents its recommendation to CNIC. Recent assessments have included a bowling alley, lodging, golf course, movie theater, and gaming center.
Project Outcomes:
Since 2013, the Hayat Brown team has performed PVAs for hospitality, recreational and infrastructure projects. Its recommendations for the proposed projects have varied from strong endorsements, suggestions for reprogramming and outright rejection.
