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Introduction

1.1 PURPOS E

This Manual has been prepared by the Office of the Deputy Under Secretary of

Defense (Industial Affairs and Installations)l, in cooperation with the Military

Departments, and the Office of the Secretary of Housing and Urban

Development, to:

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Provide supplemental guidance for those carrying out the regulations for

revitalizing base closure communities and community assistance [32 Code of

Federal Regulations (CFR) Parts 174,175, and 176].

Identify common-sense approaches and general practices for the Military

Departments to follow during various aspects of base reuse implementation.

Provide a common set of guidelines that allow flexibility for the Military

Departments’ base reuse implementation teams. Manual users are

encouraged to adapt the guidance in this Manual to their own installationspecific circumstances.

1.2 PHILOSOPHY AND GOAL S

The disposal and reuse of closing military installations represents a critical

challenge. The Department of Defense (DoD) needs to accomplish disposal

quickly and efficiently to save money for readiness and other responsibilities.

The reuse of these installations through their transition to avi.lian use is an

equally critical part of our task. The Defense Department has a responsibility to

assist the communities that hosted our installations, one that it has recognized for

more than 30 years. The President of the United States and the Seaetary of

Defense have articulated the goals of this effort

● Close bases quickly, but in a manner that will preserve valuable assets to

support rapid reuse and redevelopment.

● Give high priority to local economic redevelopment when disposing of

available real and personal property.

1A Deputy Secretary of Defense memorandum of May 15,1996, “OUSD (Acquisition and

Technology) Reorganization” disestablished the Office of the Assistant Secretary of Defense for

Economic security and established the Office of the Deputy Under Secretary of Defeme (Industrial

Affaim and Installations).

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Introduction

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Put available property to productive use as quickly as possible through leases

and conveyances to spur rapid economic recovery and reduce DoD caretaker

costs.

Expedite the “screening” process, which identifies interests in excess and

surplus property at closing and realigning bases.

Fast-track environmental cleanup by removing needless delays while

protecting human health and the environment.

Make every reasonable effort to assist the Local Redevelopment Authority

(LRA) in obtaining the available personal property needed to implement its

redevelopment plan.

Support the local redevelopment process through sufficient planning grants

and on-site Base Transition Coordinators.

Coordinate Federal resources to assist communi~ economic recovery.

To achieve these goals, the Department of Defense developed this Manual

around three key themes:

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Consultation. The Military Deparhnent and the LRA should be in constant

contact throughout the base closure and reuse process. Problems can be

avoided through consultation.

Partnership. The Military Departments and LRAs should work together

honestly and with full disclosure. Thek efforts should be coordinated to

minimize duplicative efforts and avoid misunderstandings. Mutual goals can

be achieved between parties that treat each other as partners, not adversaries.

Flexibility. To maximize flexibility and allow for site-specific solutions,

discretion has been left, where possible, to allow for co&.mon-sense decisions

by the implementors.

This Manual reflects the Administration’s effort to create a flexible process that

works better and costs less. Provisions that are intended to cover all situations

could straightjacket Federal employees and confuse the public. This Manual is

written to maintain flexibility while providing guidance to Military Department

implementors by offering examples of how to address specific problems.

KEYS TO SUCCESSFUL DISPOSAL OF CLOSING MILITARY INSTALLATIONS

The President, the Secretary of Defense, and the Secretaries of the Military

Departments have each given this issue personal attention, and each is

committed to this program’s success. The base closure and reuse process is a new

and complex task that requires creative solutions and a break from “business as

usual.” Many communities affected by base closure face an uncertain economic

future and are presented with tremendous challenges to their local economic

base. To assist our customers, the local communities, you need to:

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DoD Base Reuse Implementation Manual

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WORU COOPEiMTIVELY. Reaching agreements with the LRA will make

the process smoother in the long run. Treat the LR4 as if it is your partner.

CONSIDER COMMUNMY NEEDS. Think about how decisions will affect

the ability of communities to redevelop the base.

COMPROMISE. Reaching agreements early in the process will save time and

money later.

BE FLEXIBLE. Do not be wedded to a particular approach to a problem.

Creativity, within the applicable laws and regulations, is essential to

successful base closure and reuse.

BE INNOVA7TVE. Do not be hamstrung by past practices. This is a new

process, and decisions should be new and different.

EXERCISE COMMON SENSE. Solutions should be site-specific. There will

rarely be cookie-cutter solutions that apply to all cases.

DELEGATE. Allow front-line employees to make as many decisions as

possible, especially when an issue is routine or when the policy has already

been formulated; requiring layers of approval will only delay the process.

CUT “RED TAPE.” The Department of Defense is seeking to eliminate as

much red tape as possible. By itself, each additional procedure may make

sense, but the accumulation of them over time grinds matters to a halt.

Cutting across bureaucratic lines to slash red tape is essential to getting the

job done and additional levels of bureaucracy can lead to higher costs and

wasted taxpayer money.

1 .3 HISTOR Y

The Department of Defense is engaged in a phase of downsizing, resulting in

fewer military bases to support defense missions. The Base Realignment and

Closure (BRAC) process has resulted in the closing of hundreds of military

facilities throughout the country.

A military base often represents a major employment center and provides

significant economic stimulus to the local economy. A base closure can be a

serious blow to the local community. As a result, the Department of Defense

recognizes that the manner in which real and personal property at closing bases

is transferred can have an important impact on the local community’s prospects

for economic recovery.

Lessons learned in previous roumds of base closures have shown that the

traditional Federal property disposal process has not always met the economic

recovery needs of the local community. Therefore, in July 1993, the President

announced a plan to provide for more rapid redevelopment and job creation in

communities affected by base closure decisions. This Presidential initiative gave

top priority to helping affected communities realize early reuse of base assets to

spur economic recovery.

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Introduction

A PRESIDENTIAL INITIATIVE

The President’s Five-Part Plan for Revitalizing Base Closure Communities (1993)

consists of the following:

● Jobs-centered property disposal that puts local economic redevelopment

first.

. Fast-track environmental cleanup that removes needless delays while

protecting human health and the environment.

. Assignment of on-site Base Transition Coordinators at major bases slated

for closure to assist communities and the Military Departments with

property disposal and economic redevelopment.

● Easy access to transition and redevelopment help for workers and

comuumities.

. Quick economic development planning grants to base closure

communities.

The Administration’s new approach to make base property more readily

available to communities for economic development and job creation represents a

fundamental change in the policy of Federal property disposal at closing bases.

CONGRESSIONAL SUPPORT AND DEFENSE IMPLEMENTATION

In November 1993, Congress supported the President’s plan by enacting the Base

Closure Community Assistance Act (Subtitle A of Title XXIX of the National

Defense Authorization Act for Fiscal Year 1994, Pub. L. 103-160), referred to here

as “Title XXIX” This legislation substantially amended the base closure laws and

provided the Department of Defense with tools it needed to carry out the

President’s plan. A copy of the law is provided in Appendix B.

In April 1994, the Department of Defense issued an interim final rule, codified at

32 CFR Parts 174 and 175. The interim final rule provided guidance to the

Military Departments for implementing provisions of Title XXIX, specifically real

property screening to aid disposal planning, property conveyances at or below

fair market value (referred to as “Economic Development Conveyances”),

interim leasing, personal property inventory and disposal, and minimum

maintenance levels necessary to support civilian use. The rule was available for

public comment until August 1994.

In response to public comments, the Assistant Secretary of Defense for Economic

Security (now the Deputy Under Secretary of Defense (Industrial Affairs and

Installations)) convened a BRAC Implementation Working Group with

representatives from the Military Departments and from the Office of the

Secretary of Defense. The Working Group was tasked to address the public’s

concerns and to develop needed revisions for the final n.lle, as well as to identify

and foster DoD-wide approaches to base reuse implementation. One of the

Working Group’s first products was an amendment to the April 1994 interim

final rule, issued by the Department of Defense in october 1994, that addressed

the requirements for Economic Development Conveyances (EDCS). The

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DoD Base Reuse Implementation Manual

amendment eliminated certain requirements, including a “market test” to

determine marketability of propefi, and provided more detailed instructions on

EDC application and review criteria.

In October 1994, Congress enacted the Base Closure Community Redevelopment

and Homeless Assistance Act of 1994, Pub. L. 103-421 (“Redevelopment Act”).

T?MS law, in amending Pub. L. 101-510, exempts most closing bases (including

some BRAC 8$, BRAC 91, and BRAC 93 bases, and all BRAC 95 bases) from the

Stewart B. McKinney Homeless Assistance Act and establishes a new process by

which homeless assistance needs can be satisfied in base closure communities.

In July 1995, the Department of Defense issued a final xule, addressing public

comments to the interim final rule and the amendmwt to the interim fial rule.

In conjunction with the Department of Housing and Urban Development, the

Defense Department also issued an interim final rule, codified at 32 CFR Part 176,

to provide a uniform regulatory framework for implementing the new homeless

assistance procedures outlined in the Redevelopment Act. The interim final rule

was available for public comment until October 16,1995.

On February 10,1996, the President signed the National Defense Authorization

Act for FY 1996 (NDAA 96). Title XXVIII of that Act contained several sections

that further amended the base closure laws including:

● Section 2832 Eliminated the requirement that a substantial part of the

installation be leased in order for the Military Departments to accept inkind lease payments performed on any portion of the installation.

● Section 2833: Authorized, in certain circumstances, interim lease terms

that extend beyond the expected completion date for the disposal

Environmental Impact Statement.

● Section 2834: clarified that DoD can enter into long-term leases (also

called “leases in furtherance of conveyance”) while environmental

remediation is ongoing.

. Section 2837 Authorized DoD to transfer property still needed by a

Federal Department or Agency to an LRA, provided the LRA leases the

property back to the Federal entity at no cost.

● Section 2838: Amended the Redevelopment Act.

In response to the changes to the Redevelopment Act contained in Section 2838

and to address public comments received on the interim final rule, DoD

published a final rule implementing the Redevelopment Act on July 1,1997. In

addition, on February 21,1997, DoD published a proposed rule establishing

procedures for implementing the leaseback authority granted in Section 2837.

The proposed rule was open for public comments until April 22,1997. A final

rule implementing the leaseback authority is being developed.

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Sections 2833 and 2834 of the NDAA 96 were implemented in policy memoranda

signed by the then Principal Assistant Deputy Under Secretaxy of Defense
Introduction

(Industrial Affairs and Installations) on June 12,1996. Copies of these

memoranda can be found in Appendix D. In addition, Chapter 5 contains

language reflecting the new authority granted by Section 2832 of the NDAA 96.

The National Defense Authorization Act for FY 1997 (NDAA 97) also contained

several provisions affecting the base closure and reuse process including

. Section 334: Authorized the Department to transfer property, under

certain conditions, prior to the completion of remedial actions. Under

this “Early Transfer Authority” it is also possible for the new property

owner to undertake environmental remediation activities (instead of

DoD) concurrently with redevelopment efforts.

● Section 2811: Restored the Department’s authority to complete

intragovernmental transfers at B?&4C ’88 locations.

● Section 2812: Expanded the Department’s authority to enter into

agreements (e.g., contracts, cooperative agreements) with local

governments for the provision of caretaker services.

● Section 2814: Restored the Deparbnent’s authority to make grants,

conclude cooperative agreements, and supplement other Federal funds

to assist States in providing assistance and support to local adjustment

and diversification efforts.

Information on the implementation of Section 334 can be found in Chapters 2 and

5 and Appendix F.

1.4 MANUAL C ONTENTS

This Manual supplements the existing rules and provides guidelines for Federal

decision-makers and staff and others involved in implementing base reuse. This

Manual does not instruct the LRA or the general public, but allows them to

understand the instructions and guidance that the Military Departments are

required to follow.

This Manual is written in an easy to read question and answer format to help you

quickly find answers to specific questions on the base closure and reuse process.

It contains guidance on real property screening and disposal, inventory and

disposal of personal property, leasing, maintenance of closing installations,

transfers of real property umder an EDC, and transfers of property using the

leaseback authority. In addition, the appendices contain laws, regulations, and

policy guidance relevant to base reuse.

This Manual does not create any rights or remedies and may not be relied upon

by any person, organization, or other entity to allege a denial of any rights or

remedies other than those provided by Title XXIX of Pub. L. 103-160, Pub. L. 103-

421, or Title XXVIII of Pub. L. 104-106.

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DoD Base Reuse Imdementation Manual

1.5 AVAILABILIN ON L I N E

This Manual is available via the World Wide Web at

http:/ /emissary. acq.osd.mil/bctoweb/brim.nsf.

1.6 UPDATE S

This Manual will continue to be updated as determined appropriate. Comments

are welcome, especially suggestions on how to improve the document’s

usefulness. Suggestions or questions should be addressed to:

Base Closure and Community Reinvestment Office

400 Army Navy Drive, Suite 200 .

Arlington, VA 22202

E-mail address: base_reuse@acq. osd.mil

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