FOR IMMEDIATE RELEASE
Friday, September 28, 2007

Senate Approves Chambliss, Isakson Legislation to Address Housing Delays at Moody Air Force Base and other Military Installations

WASHINGTON – The U.S. Senate has approved legislation sponsored by U.S. Senators Saxby Chambliss, R-Ga., and Johnny Isakson, R-Ga., directing the Comptroller General to submit a report to Congress on any housing privatization transactions that are behind schedule or in default, as well as remedies available to the federal government to restore the transaction to schedule or completion. The legislation was unanimously approved this week as an amendment to the Fiscal Year 2008 National Defense Authorization Act currently being considered by the Senate. Senator Mark Pryor, D-Arkansas, is also a co-sponsor of the amendment.

“I am pleased our colleagues have joined us in requesting this report,” said Chambliss, a member of the Senate Armed Services Committee. “We need to take a good look at this situation and get to the bottom of the factors and decisions that contributed to the Air Force awarding this contract to ensure it does not happen again. The problem extends beyond the situation here in Georgia, and we need to ensure that it is resolved as quickly as possible.”

“The delays in the completion of these housing projects, including the project at Moody Air Force Base in Valdosta, are unacceptable and have a significant impact on our airmen and their families as well as the local community,” Isakson said. “I’m pleased my colleagues are supportive of this request, which will enable us to determine what steps can be taken to resolve these issues as quickly as possible.”

Moody Air Force Base in Valdosta has experienced a significant delay in the completion of privatized housing needed to accommodate some 1,000 new personnel expected to arrive in 2009. The estimated cost of the project has exceeded available funding by $25 million, and the project lenders stopped funding in March 2007 to prevent all funds from being expended. At least three other Air Force bases across the country have similar contracting delays with privatized housing projects associated with the same contractor. Chief Judge Arthur McLane has appointed a receiver to manage and protect the project in order to keep it moving forward.

Chambliss and Isakson sent a joint letter to the Air Force on August 3, 2007, with a response received on August 20, 2007. Additionally, Chambliss sent a letter to the Air Force on March 29, 2007, with a response received on April 17, 2007. However, Chambliss and Isakson noted that those responses did not effectively address the issue.

###