Accession Number:

ADA160918

Title:

Third Party Financing and Generic Application for Navy Facilities,

Descriptive Note:

Corporate Author:

NAVAL FACILITIES ENGINEERING COMMAND ALEXANDRIA VA

Personal Author(s):

Report Date:

1985-01-01

Pagination or Media Count:

19.0

Abstract:

During the past several years the Congress has developed legislation to encourage the Defense Department to enter into long term third party contracts for the purchase of energy products at military bases. More recently the Congress has extended this development to include other types of facilities that may be feasible to construct under third party financing. A computer model has been developed for determining the total cost to the United States Government for leases involving third party financing. This third party financing model for new construction has been developed for evaluating the total cost to the U.S. Treasury for facilities built, operated and staffed for operations by private contractors as opposed to the standard procedure for Military Construction Navy MCON. The total cost to the U.S. Government includes the Navy lease contracts plus any net tax benefits accrued by the contractor and less any land rents payable to the Navy. The model computes the net lease value, after tax benefits accrue to the third party, maintaining a fixed profit level to the contractor. This generic concept can apply to any Navy facility including those within the scope of Homeport Leasing projects.

Subject Categories:

  • Administration and Management

Distribution Statement:

APPROVED FOR PUBLIC RELEASE