Quality Communities for Army Families

The PAL program is a partnership between the Army and private industry to improve the condition of on-post lodging facilities and provide for their long-term sustainment.

Privatization under the PAL initiative gives the Army the ability to leverage private sector capital and best business practices, providing quality facilities today that will be sustained throughout the next 50 years

Working together, we can make a difference in the lives of thousands of Soldiers and families each year!

Image: Seal of the Assistant Secretary of the Army for Installations and Environment.

Program Information

Key Program Characteristics

  • Natural expansion of a proven initiative (RCI)
  • Project reimburses government for all municipal services provided (i.e., utilities, waste management, fire and police)
  • Owner earnings limited to fees earned at negotiated rates
  • Excess cash flow is trapped in a Reinvestment Account dedicated to long-term facility sustainment
  • Private sector institutes best practices and commercial standards (meeting or exceeding Army Lodging standards)

Keys to Program Success

  • Competitively select developer/operator
  • Allow private sector to institute best practices through transfer of non-core function
  • Avoid unnecessary levels of government involvement
  • Maintain comprehensive Portfolio and Asset Management (PAM) program to monitor project performance
  • Protect the Army’s interests through the lease and PAM oversight

More Resources