Presentation to DOE/BAO & CH BNL Housing Reconstruction Project Michael J. Bebon ALD Facilities & Operations Michael M. Goldman Deputy General Counsel Susan M. Perino Facilities& Operations Business Manager April 17, 2003
Progressive decrease in the inventory of housing units as individual buildings failed structurally and were condemned.
Expected rate of failure same as Case 2.
The poor quality of the existing units and their associated safety issues (lead, asbestos) would continue until structural failure occurred.
Maintenance cost escalation would accelerate.
Given expected building failure schedule, this alternative would decrease BNL’s apartment capacity by more than 50% over the next 10 years and completely eliminate the availability of apartment housing at BNL by 2018.
The net present value of the cases analyzed above are as follows:
Case Number Description Net Present Value of Cash Flows
1 Public-Private Partnership $0
2 No Project ($22,839,621)
3 Government Funded ($1,236,030)
4 No Action N/A
Based on this analysis, the public-private partnership is in the best interest of the Department of Energy and should be the approach used to address the need for reconstructing the apartment area at Brookhaven National Laboratory.
The business parameters of the Public-Private Partnership Case to develop a new apartment housing complex at Brookhaven National Laboratory meet the applicable OMB Circular A-11 Appendix B criteria for designating the Construction Agreement and Master Facility Lease as an Operating Lease.