New Navy Acquisition Modernization Office Releases First Development Opportunity

March 12, 2020 – The Navy has launched a new public-private partnership real estate development opportunity at one of the most highly desired locations in Hawaii. The Acquisition Modernization Office (AMO) will leverage its first development to finance critical infrastructure improvements to further Navy mission readiness.

On February 24, 2020, the Naval Facilities Engineering Command’s (NAVFAC) newly established AMO released a request for information (RFI) for industry’s perspective on how to best enhance 70 acres of ocean-view property located on Joint Base Pearl Harbor Hickam (JBPHH) on the island of Oahu, Hawaii. The RFI for the “Little Makalapa” project offers two non-contiguous sites, both within walking distance of JBPHH and the planned Makalapa Transit Station.

The Navy envisions a transit-oriented development that would be transformational for both Navy personnel and the island of Oahu as a whole.

“The Navy recognizes the tremendous win-win opportunity we have here on Oahu to create value and to address transportation challenges for both the public and private sectors through a development that will draw new residents, businesses and visitors, and become a community asset for the city of Honolulu and for Joint Base Pearl Harbor-Hickam,” said Capt. Marc Delao, commanding officer, NAVFAC Hawaii. “The opportunity to host private development on underutilized, non-excess land is provided under Title 10, United States Code lease authority, which encourages developers to maximize the market value of the property.”

The Department of the Navy (DoN) benefits as a result of this development are two-fold.

“In-kind consideration from the lease will provide Joint Base Pearl Harbor-Hickam with infrastructure development that will close gaps in support for critical missions of strategic importance to national security,” said John Kliem, director of AMO.

Moreover, part of the development will include infrastructure to connect installation pedestrian traffic to the planned adjacent Honolulu Authority for Rapid Transportation rail station, ensuring safe passage of shipyard and installation workers who will use the new public transit system.

“Leveraging partnerships with the private sector and public entities to rapidly pursue non-traditional solutions to infrastructure, utility and base operating support requirements is the goal of the Acquisition Modernization Office,” added Kliem. “The Little Makalapa project is the perfect example of utilizing existing resources to achieve strategic objectives – both for the Navy-Marine Corps team and the communities surrounding our bases – especially in a time of increased pressure to prudently deploy Defense spending in support of our Sailors and Marines.”

Using real estate as the common denominator, AMO takes a holistic view of the DoN’s global real estate portfolio to attract private capital and industry solutions tailored to shore priorities. Due to Little Makalapa’s prime location adjacent to businesses surrounding JBPHH, workplaces on the base, recreational opportunities on and offshore, the Navy hopes to inspire the next generation of Oahu’s development without expanding the current human footprint on-island.

The project draws from the successes of other developments like Ala Moana in Honolulu, and several U.S. mainland projects, such as the Navy Yards in Washington, D.C. and Philadelphia, Penn., and the Navy Broadway Complex in San Diego, Calif. These projects have revolutionized the areas in which they were developed, bringing new economic opportunities to previously underdeveloped neighborhoods. In each case, success hinged on the vision and capabilities of the private sector, which is being requested once again via the recent RFI.

Developers interested in participating have until April 3, 2020 to respond and are encouraged to attend the March 18, 2020 Developer Conference and Site Visit at JBPHH.

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