Providing attractive, modern, and high-quality MWR facilities to Marines and their families encourages pride of ownership and participation in events and programs offered at those facilities. The MCCS construction program is well structured and we continue to build and renovate needed resale and MWR facilities. Funds for Nonappropriated Fund (NAF) projects come from a 2.5 percent assessment of sales on our installation revenue generators and go into a separate Central Construction Fund (CCF) account. Only funds directly related to the construction program come out of this account. Minus the 2.5 percent assement, the profits generated by a command remain at the command and can be used for local construction projects, maintenance and repair, real property improvements, and general recapitalization.
Since 1991, we have averaged approving 24.3 projects a year at approximately $27.9M per program year. For FY05, we anticipate capitalizing 16 projects at an estimated cost of $28.96M, which is fairly typical.
Each year in the month of January, we issue a 'call letter' requesting commands to identify and submit any NAF construction projects they would like added to the construction program, usually three years out.
The projects are review for completeness, accuracy, and revenue generating projects must also be reviewed by a Financial Review Board, which confirms or modifies the business case and the projected financial returns on the proposed project. Projects are prioritized based on an objective point system that considers Commander's priority, Patron's priority, Internal Rates of Return (for revenue generators), Quality of Life priority, and the priority of the Program Sponsor.
From this list of submission, a recommended list of projects is developed and submitted for review to our Marine Corps Community Service Directors. The recommendation is either endorsed or modified by the Directors and submitted to the MCCS Board of Directors Construction Committee who has the responsibility to develop the annual NAF construction program. The Committee submits their recommendation to the full Board of Directors for approval.
Upon approval of a project by the Board of Directors, we are authorized to commence the design stage. Construction contracts cannot be awarded until the year designated for construction, and Congress has approved the project if the estimated construction cost exceeds $750,000. While the Naval Facilities Engineering Command is our designated design/construction agent, we also have Memorandums of Understanding with the Army Community and Family Support Center (CFSC) and the Army and Air Force Exchange System (AAFES) to perform design and construction contracting services. Depending on the agency selected for contracting services, a major project can take as little as eight months to as long as three years from authorization of design until the building occupancy date.