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May 20, 2016

A&M provided business and financial advisory services to the Army to support the EUL approach.

Client Mandate
During the Persian Gulf War, the U.S. Army recognized the need for a hot weather vehicle testing facility but construction funds were not available. Using its Enhanced Use Leasing (EUL) authority, the Army sought private sector collaboration for a hot weather test complex at the Army’s Yuma Proving Ground in Yuma, Arizona. A&M provided business and financial advisory services to the Army to support the EUL approach.

A&M’s Approach
A&M professionals served as the business and financial advisor to the Army on the out-lease of 2,400 acres of undeveloped land at Yuma Proving Ground for the purpose of constructing and operating a commercial Hot Weather Test Track facility for shared use by the US Army and commercial entities. A&M professionals worked with the Army to develop a solicitation that clearly described the Army’s Hot Weather Test Track concept, solicitation process, submittal requirements and evaluation factors. A&M facilitated meetings with stakeholders to assure full understanding of the project’s goals and objectives. 

A&M brought its public-private sector transaction expertise to bear in helping the Army market and negotiate an Enhanced Use Lease and Shared Use Agreement for the Hot Weather Test Track at Yuma Proving Ground. A&M professionals planned and conducted an Industry Forum, including identifying and inviting interested parties, to ensure that developers clearly understood the Army’s goals and requirements. The team also facilitated the evaluation of developer proposals, and assisted with the negotiation of the Business and Leasing Plan that exceeded the Army’s objective, by obtaining a Hot Weather Test Track the Army could use to test all weight classes of vehicles, as well as other sharing arrangements.

Results
General Motors Corporation (GM) was selected by the Army as a result of a competitive solicitation process. The lease was executed by the Army and General Motors Corporation (GM) on June 5, 2007, less than a year from the commencement of A&M’s contract, and the test track was completed in 2010. To date, GM has invested over $120 million in the development of the complex and, in addition, has provided a separate test track for the Army to test heavy weight vehicles. This test facility provides the Army with high-speed testing in a desert environment at no cost.  In addition, the Army received no-cost access to other test tracks owned by GM.

The Yuma Proving Ground EUL represents a public-private partnership that demonstrates economic use of Federal land, infrastructure and facilities and provides for creative shared-use and joint development of highly-specialized vehicle test facilities. A&M’s efforts on the successful execution of this transaction resulted in the following awards:

  • 2009 National Council for Public-Private Partnerships (NCPPP) Innovation Award Winner
  • 2007 Finalist for the General Services Administration (GSA) Achievement Award for Real Property Innovation