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					                   FY 09 ARMY LODGING PROGRAM GUIDANCE

1. LODGING MANAGEMENT. POC is Donna Joray, DSN 761-3771, COM (703) 681-
3771, FAX (703) 681-5342, or e-mail

   a. Financial management guidance and procedures for allocating the cost of MWR
and lodging overhead services are provided at Encl 5.

    b. Region points of contact for budget preparation and budget submission
instructions are at enclosure 11.

2. Budget period for Privatization of Army Lodging (PAL) sites. Unless superseded by
subsequent guidance, these are the budget periods for sites scheduled for transition
under the PAL initiative:

    a. PAL Group A sites. At the time of this guidance, PAL Group A sites are targeted
to transition to privatization during FY 08 with an anticipated 120 day transition period
(four months). PAL Group A sites should budget through the end of transition period to
include any period which may extend into FY 09, based on updates that may occur in
the PAL Group A timelines.

    b. PAL Group B sites targeted for transition during FY 09, and PAL Group C sites
will budget for operations through 30 September 09.

3. Severance/DSR for Army Lodging NAF Employees will be budgeted at the HQ Army
Lodging level.


    a. Service Charge/Room Rate Budgets. Service charges/room rates for FY 09
budget submission purposes will be held to FY 08 Average Daily Rate (ADR) levels.
The FY 09 ADR will not be reduced below the FY 08 rate. ADRs may be adjusted to
reflect the annual general schedule wage increase applicable to FY 09 total personnel
costs, as well as increases in the cost of doing business. However, increases 5% over
the FY 08 ADR, or that exceed 75% of the lodging portion of per diem, must be
approved. IMWR-HP will coordinate exceptions with concerned Army Staff components
as appropriate (e.g., G1, G3/5/7, etc.). Room rates shall be adjusted for each room
type in order to arrive at the appropriate total adjustment to the ADR. An example of


                                                                             Enclosure 6

this calculation, which would be applied to each room rate category follows (figures
below are used as an example only; use actual data for calculations):

$40.00       FY 08 Room Rate
$ 0.92       General Schedule Wage Increase (available from personnel office)
$ 0.13       Increase in cost of guest supplies
$41.05       subtotal
$41.50       Revised FY 09 Room Rate (rounded up to the nearest 50 cents).

This nominal increase ensures a predictable funding stream to lodging activities while
providing consistency for those activities budgeting for official travel expenditures.

    b. Additional Occupant Charges. Appropriated funds are not authorized to
subsidize lodging costs associated with guests not in an official travel status.
Accordingly, an Additional Occupant Charge is required for every additional occupant
over the age of one year accompanying the primary traveler to offset costs associated
with each additional occupant, e.g., laundry, housekeeping, supplies/amenities,
cots/cribs, increased wear and tear on facilities, FF&E, linens, continental breakfast
service, etc. Charges will be as follows:

Additional Occupant. Minimum $5.00 per additional occupant per room night (which
includes the $2.50 continental breakfast charge). Justification for fees in excess of
$5.00 must be included in the manager's narrative submission and supported with an
appropriate calculation.

Additional occupant revenue shall be recorded in GLAC 501 – Service/Recreation
Activity Income.

   c. Distinguished Visitors Quarters (DVQs) Service Charges/Room Rates. Service
charges for DVQs shall reflect the historically lower occupancy rates in these facilities
and the typically higher operating and capital costs associated with additional
services/amenities, larger units or geographically dispersed units. Service
charges/room rates for DVQs should normally be set at least 30 percent higher than the
average rates for other room types to ensure DVQs are not subsidized by other
occupants. However, DVQ room rates shall be developed based on the actual costs of
operating these rooms to include a pro rata share of overhead costs and required
capital costs. Where the cost of DVQ operations exceeds the lodging portion of per


                                                                            Enclosure 6

diem, distinguished visitor/officer services will be reduced: DVQs will be redesignated
for regular TDY/PCS; or authorized APF support will be required to fund or offset the
DVQ operational cost.

   d. Lodging Capital Assessment (LCA). LCA rates for FY 09 are as follows:

                           $12.00 for adequate rooms
                           $ 1.20 for foreign students
                           $ .50 for inadequate rooms

The LCA will be included in the primary occupant daily room rate for all adequate rooms
(official and unofficial travel). The room rate charged each guest on official travel (2
primary occupants) sharing an adequate/inadequate room will include the full applicable
LCA for each occupant (e.g., 2 soldiers sharing an adequate room each pay $12 LCA).
Families occupying the same adequate/inadequate room will be assessed the LCA on a
per occupied room night (primary occupant daily rate) basis for each room occupied,
e.g., if the family rents two rooms the LCA applies to the room rate for each room. For
LCA purposes, adequate rooms are as reported on the 30 Jun 99 Room Service
Charge and Inventory Report and those inadequate rooms that have been made
adequate through investment since the 30 Jun 99 report. Justification to reclassify
adequate units (as of 30 Jun 99) to inadequate for purposes of the LCA must be
reviewed and approved by the IMCOM Region HQ Army Lodging (IMWR-HPL) prior to
a reduction in the LCA rate. A copy of the approval to include the building number and
number of guest units affected must be provided to IMWR-HPL as an amendment to the
most recent Service Charge and Inventory Report. LCA revenue is recorded in GLAC
501 – Service/Recreation Activity Income.

    e. Foreign Military Student/Trainee Lodging Rates. Foreign students/trainees are
authorized the same lodging as their US counterparts. Furthermore, they are required
to pay the same rates as their US counterparts, adjusted only for the LCA as noted in d.
above. Garrison lodging activities are authorized to charge each foreign military
student/trainee actual lodging rates for single or shared occupancy of adequate rooms
including the $1.20 LCA surcharge, not to exceed any specific garrison ceiling
established by the Security Assistance Training Program (SATP). The test for accuracy
is: Room rate minus $12.00 LCA plus $1.20 foreign military student/trainee LCA and
rounded up to the nearest 50 cents equals the foreign military student/trainee room rate.


                                                                            Enclosure 6

Garrison specific ceilings are based on garrison lodging activity input to data calls
managed by the SATP. Any changes to authorized rates will be forwarded under
separate cover as made available by the SATP. This authority applies to foreign
military students/trainees on temporary duty attending formal training at Army facilities.
Foreign military personnel who are in another status will be charged the rate for
unofficial travelers at that garrison.

    f. Unofficial Travel Surcharges. Garrison commanders have the option of
implementing a fair market room rate for unofficial occupants in Army Lodging facilities
as an addition to the official primary occupant daily rate (including the LCA).
Contractors on official business are considered official travelers. Revenues from market
rate increases will accrue to the ALSF and shall be recorded in GLAC 501 –
Service/Recreation Activity Income.

    g. Inclusion of Continental Breakfast Service in the Service Charge/Room Rates.
As of 1 Oct 2006, all Army lodging activities will offer a standardized continental
breakfast service. This service may not be contracted out to any other entity or activity.
Continental breakfast service will be operated on a breakeven basis at a rate NTE $2.50
per person per room night, based on usage, to ensure compliance with the waiver that
allows Army Lodging to provide continental breakfast services. All associated costs
(e.g., labor, food, supplies, etc) associated with provision of continental breakfast
service will be reported under department code 14. Expenses associated with the
purchase of food for continental breakfast service will be charged to GLAC 691, Meals
and Snack Expense under department code 14.

In accordance with the JTR/JFTR, a continental breakfast is not a deductible meal
provided the room charge is the same with or without the breakfast (e.g. room rate is
$75 with or without continental breakfast). As such it does not affect the traveler's
meals and incidental expense portion of the per diem rate. Reference JFTR U4165
(uniformed members), JTR C4554-B (civilian employees), and Appendix O: TDY Travel
Allowances (JTFR and JTR) T4040 Change 255/509 (both uniformed members and
civilian employees).

This consideration is a function of the level of service provided and has been
incorporated in the standardized continental breakfast offerings. This standard
excludes any hot, prepared foods that would typically be accompanied by table service


                                                                              Enclosure 6

or would require the services of cooks who are classified at the NA-8 level to ensure
compliance with the JTR/JFTR.

Requests for exception to this continental breakfast guidance should be forwarded to
the IMCOM Region to IMWR-HP. Management control systems will ensure continental
breakfast service is limited to Army Lodging occupants. Continental breakfast service
will not be extended to Army Lodging management and/or staff on a pay as you go, or
any other basis, as the continental breakfast service area is a public/patron area rather
than one intended for use by employees. Continental breakfast service may be
extended to the guests of occupants at a cost of $2.50 per person.

Additional guidance for development of the continental breakfast budget is found on the
instruction tabs of the FY 09 EXCEL budget template.

    h. Exodus Room Rates. A specific $3 per night "Exodus" service charge/room rate
may be established at Army Lodging operations supporting training missions. This rate
is applicable only during the Exodus leave period defined as from the second week in
December through the first week of January. Costs incurred during leave status are the
responsibility of the Soldier and are not reimbursable. Army Lodging operations
implementing the Exodus Room Rate will follow procedures outlined in IMWR-BPL
Memo, 23 Nov 04, subj: Establishment of Army Lodging Exodus Service Charge/Room
Rate and Capital Purchase/Minor Construction Guidance at in order to maintain the
integrity of occupancy and average daily rate statistics.

5. ARMY LODGING WELLNESS PLAN. POC is Sheryl Cleland, DSN 761-7758, COM
(703) 681-7758, FAX (703) 681-5342, or e-mail:

   a. Diversion/Conversion of Facilities From or To Lodging Use. Authority to
divert/convert facilities from or to Army Lodging shall be forwarded through the IMCOM
Region to the US Army Family and Morale, Welfare and Recreation Command,
Hospitality Programs (IMWR-HP) for approval. Requests shall include information on
reimbursement or payment for NAF investments/assets as well as an assessment of
impact on the lodging of Military Training Support Service students. IMWR-HP will
coordinate lodging diversion/conversion requests with OASA (I&E).


                                                                             Enclosure 6

b. Capital Purchase and Minor Construction (CPMC)

     1) CPMC Planning. All garrisons will continue to budget for five year CPMC
requirements to maintain the Army's investment in facilities and quality
accommodations. Refer to the life cycle guidance in the Army Lodging CapEx Life
Cycle Template (enclosure 11, DOC 8) for assistance with projecting outyear capital

       2) CPMC Execution. The Region Army Lodging Assistant Fund Manager may
cross-level CPMC funding/requirements within the approved funding level of the
region’s consolidated garrison lodging CPMC budgets, to meet a shortfall when the
Garrison Commander’s endorsement acknowledges that APF is unavailable, and
garrison NAF is insufficient. The ALSF Fund Manager will review requests for ALSF
funding of garrison shortfalls for execution of approved CPMC projects after the region
funding capability has been exhausted. CPMC execution will reflect the ongoing PAL
initiative, Base Realignment and Closures (BRAC) and other transitional actions.

     3) Sites Scheduled to Transition during FY 09 to FY 10. The following CPMC
guidance applies to sites: transitioning to new ownership under the PAL initiative
(enclosure 11, Document 1); closing or other action under BRAC, or undergoing
Training/Transformation actions or Re-basing/Stationing actions.

       (a) All lodging operations will continue to budget for outyear CPMC

      (b) Bulk Purchases. Sites targeted to transition or close during FY 09 will
program and report like items purchased in a quantity in excess of one at a total cost of
$2,500 or more, as an operational expense regardless of useful life.

        (c) Fixed Assets. Assets with an individual cost of $2,500 or more and two or
more years of useful life, provided purchase is authorized by this guidance, will be
programmed in the CPMC Plan, recorded as Fixed Assets, and depreciated over a
maximum of two years. If the official lodging activity is closed prior to the asset being
fully depreciated, the remaining book value will be expensed at the close of business.

      (d) Furniture, Fixture, and Equipment (FF&E). Operational and CPMC
purchases are limited as follows:


                                                                              Enclosure 6

         - Sites targeted to transition or close during FY 09, must request an exception
to policy to budget for FY 09 CPMC requirements.

        - Purchases based solely on life cycle are not authorized.

        - Army Lodging operations may replace items upon failure, provided the item is
required to provide services as outlined in the Army Lodging standards .

        - Army Lodging operations will maintain their par-stock/float as needed.
Garrisons shall manage par stocks to a zero level at scheduled transition/closure.

         (e) Capital M&R Purchases are authorized to remediate failure of a component
when the failure is likely to cause a shutdown or major disruption of the lodging activity's
ability to provide services as required by the Army Lodging Standards. The following
work/purchases are not authorized: M&R executed solely to extend the original useful
life of the asset; life cycle replacement; hazardous materials remediation; Force
Protection; and purchases of new assets other than replacements due to failure.

     4) Sites NOT Scheduled to Transition through FY 10.

       (a) CPMC projects for replacement/repair of FF&E is authorized based on
published lifecycle guidelines, and the following:

          - CPMC may not be replaced at end of serviceable life unless the FMWRC
interior design office validates existing FF&E as unserviceable prior to the end of
expected useful life.

         - CPMC may be repaired when the garrison demonstrates that repair cost is
less than 50 percent of replacement cost and the residual value at divestiture is less
than 50 percent.

       (b) Capital M&R programming for Building Components is authorized when M&R
is required to maintain the original useful life of component. A building component may
be repaired due to a component failure, or replaced when the repair cost is greater than
50 percent of the replacement cost. No new work as defined at AR 420-1 is authorized.


                                                                              Enclosure 6

   c. Wellness Project Pre-Opening, Start-Up Costs and Operations Upon Project
Completion. Operations projected to move into a new or renovated building during FY
09 as a result of a Wellness Program project shall use a separate location code in
Department 82 Army Lodging Rooms for operations before and after opening of the
new/renovated facility (see paragraph (2) below). Estimated completion dates (for
budget purposes) for ongoing Wellness projects anticipated for completion in FY 09 are
provided at Enclosure 11, Document 3. Actual costs will begin upon the beneficial
occupancy date. Budgets for new/renovated facilities shall reflect appropriate staffing
and other expenses consistent with the new operation size and level of service. Given
these moves are to new/renovated facilities as opposed to the stand up of new
operations, annual operating budgets at these locations shall reflect the following as FY
09 operating expenses as opposed to assuming capitalization of these items as part of
the total project cost:

      (1) Pre-opening supplies of consumable and expendable items (program against
location code for operations in new/renovated facility).

      (2) Labor costs associated with pre-opening activities and refresher Army Lodging
training to standards, should be programmed at 50 percent of one month’s total labor
projection for the new facility, to occur in the month prior to scheduled
opening/reopening (program against location code for operations in new facility). Labor
costs associated with pre-opening/start-up will be charged to the assigned pre-
opening/start-up location. Labor costs associated with pre-opening activities may be
amortized for up to 12 months.

    (3) Projected severance pay expense associated with the downsizing of an
operation (program against location code for operations in existing facility).

       (4) Garrisons with renovation projects shall reflect periods in FY 09 when these
facilities are anticipated to be “off market” (closed) as well as other pre-opening
expenses listed at items (1) and (2) above. Additional budget issues associated with
completion of these facilities will be addressed with the specific Regions.

    d. Wellness Sustainment. Commencing in FY 03, the final phase of the Wellness
Plan “Sustainment” requires every lodging operation to maintain capital reinvestment in
buildings made “well” by programming a calculated amount per room annually to
support life-cycle replacement.


                                                                             Enclosure 6

    (1) Beginning in FY 09, a separate EXCEL workbook for computing capital
investment requirements is provided at enclosure 11, DOC 8 . The workbook requires
entry of multiple variables specific to each building qualifying for sustainment to ensure
proper calculation. Operations with multiple buildings that qualify for sustainment, will
need to complete a separate worksheet in the EXCEL workbook for each building, since
the calculation incorporates a building’s size, floors, and room makeup. The aggregate
total annual sustainment will be the sum of all the separate building worksheets. The
FY 09 calculated sustainment cost per room by building, will need to be manually
transferred to the FY 09 Army Lodging budget template, Fund/Reserve TAB, which will
total the fiscal year sustainment funding requirement.

     (2) The sustainment funding requirement includes Wellness projects scheduled for
completion during FY 09 (enclosure 11, Document 3), those facilities/rooms
constructed/renovated since 1995 prior to the Wellness program (enclosure 11,
Document 4), [Region Army Lodging Assistant Fund Managers should supplement this
list] and Wellness projects completed prior to FY 09 (enclosure 11, Document 5). The
life cycle/replacement guidance worksheet supports this requirement by outlining by
year specific projects required to ensure facilities are maintained. Budget preparation
shall insure CPMC/Sustainment, Restoration and Modernization (SRM) schedules
reflect an evaluation of the broad life-cycle replacement guidance (under either APF or
NAF funding) consistent with the age of the new facility or renovation. Budgeting for
valid CPMC/SRM projects scheduled within the 5 year CPMC planning window shall
follow the established CPMC process.

   (3) Budgeting for newly opened facilities (e.g., where the calculated per room
annual requirement is not yet supported by CPMC requirements in the immediate 5 year
window) shall reflect a pro rata share of the calculated per room per year requirement.
The FY 09 Fund/Reserve TAB in the budget template has been redesigned to calculate
sustainment by month in the event the new or renovated room is coming on line for a
portion of a year.

  (4) The FY 09 and prior year accumulations and use shall be reflected on the
Fund/Reserve TAB in the budget template.

6. PROCUREMENT. Requests for procurement of services such as maintenance
agreements, leases for equipment or vehicles, and other multi-year agreements shall


                                                                             Enclosure 6

reflect planned transition of garrison lodging activities under PAL (enclosure 11,
Document 1), Base Realignment and Closures, and other transitional actions. OASA
(I&E) will provide guidance on limitation of PAL site contract performance periods and
base contract terms.

7. CONSOLIDATED PURCHASING. POC is Jonina Asmundsdottir, DSN 761-5211,
COM (703) 681-5211, FAX (703) 681-7246, or e-mail:

    a. Eighth Annual Consolidated Buy. Army Lodging will execute the consolidated
buy in conjunction with the November 2008 International Hotel/Motel and Restaurant
Show (IHM&RS). The items for the November 2008 consolidated equipment and
furnishings buy will be identified based on the FY 09 garrison CPMC budgets and new
construction/renovation projects anticipated for opening/reopening in FY 09 under the
Army Lodging Wellness Program.

In support of the November 2008 IHM&RS (FY 09) consolidated buy, garrisons are
required to complete the form provided at enclosure 11, Document 7, for FY 09 capital
purchase items and email to not later than 13 Jul

The list of consolidated buy items for FY 09 will be identified by 1 Aug 08. Sources, and
associated floor and quantity discount programs, will be published by 1 Sep 08.
Garrisons will be tasked to initiate purchase requests through SNACS/PRISM Web on a
timeline that allows for the Region Army Lodging Assistant Fund Manager to certify
funding and for the completed purchase request to arrive at IMWR-NC for action NLT 8
Oct 08. Delivery dates for consolidated purchase items as identified by the garrisons
will be concurrent with execution as programmed in the garrison budget submission.

The IHM&RS consolidated buy is the only authorized method for acquisition of
furnishings and those equipment items identified as consolidated buy items by IMWR-
HPC after review of the CPMC submissions. Purchase of items outside the
consolidated buy requires a waiver. Requests will be submitted through IMCOM to

  b. Standard Products Program/Central Contracts. HQ Army Lodging oversees
management of the standard product programs as implemented by the MWR BoD in


                                                                            Enclosure 6

Jan 01. Mandatory contracts leverage Army Lodging buying power by consolidating
and standardizing the procurement of routinely replenished products used by all lodging
facilities. Currently the mandatory program includes contracts for bed and bath linens,
guest amenities (i.e., shampoo/conditioner, soap, shoe mitts, coffee condiment kits,
etc.), pre-printed materials (i.e., registration cards, folios), and credit card processing
(CONUS). Current information regarding items and vendors covered by the mandatory
sources is The contracts are competitively
awarded based on best value, where quality is not sacrificed for cost. Master contracts
provide equitable solutions for all to include sites that frequently fall prey to exorbitant
costs due to their size and location.

Deviations from the standard product program require a waiver from IMWR-HPC except
in the instance when mandatory products are supplied with APF, which shall be
addressed in the Manager’s Narrative as a part of the Annual Operating Budget.
Waivers will normally be granted only in extreme circumstances, such as inability to
meet emergency delivery deadlines. Waiver approval authority for Army Lodging
located in CONUS and PARO resides with HQ Army Lodging, IMWR-HPC. Waiver
approval authority for OCONUS locations (excluding credit card processing) is
delegated to the EURO and KORO Regional Lodging Program Managers when analysis
proves transportation costs would raise the cost of the mandatory contract item above
purchasing the same product locally. When granting these waivers Region Army
Lodging Assistant Fund Managers shall ensure the substitute product is similar in
nature to and provides the same level of quality as the standard product, and shall
inform Army Lodging IMWR-HPC of any waivers granted.

VanCourt, DSN 761-3770, COM (703) 681-3770, fax (703) 681-7246 or e-mail:

ALPMS Sustainment:

    a. Customer Support. Army Lodging will continue central funding of ALPMS
software component Customer Support / Helpdesk services for all official lodging
facilities. These components include: Galaxy/UX, HP/UX, SQL, SQR and Informix.
Additionally, central funding of Customer Support / Helpdesk for the following interfaces
will continue: PBX, Voicemail, Call Accounting, Bank and Keylock. The central funding
of Customer Support / Helpdesk for new authorized interfaces and additional official


                                                                               Enclosure 6

lodging rooms that may be acquired at existing ALPMS sites will continue. Notification
of changes and additions must be provided in advance to ensure funding: The IMCOM
region will provide advance notification of changes and additions for garrisons located in
the East (Northeast and Southeast), Europe and Korea regions. Garrisons located in
the West and Pacific regions will provide advance notification of changes and additions
directly to Mr. Van Court.

   b. Hardware/Software. Budgeting for upgraded or new ALPMS services and
components to support the current Galaxy ALPMS requires specific approval from
IMWR-HP. IMWR-HP will program funding for and prioritize requirements for
replacement servers and other equipment based on Galaxy and HP service call data.
Operating budgets shall include any anticipated increases in licensing fees expected
due to increases in inventories. The central Army Lodging contracting office will
manage execution of ALPMS hardware warranty extension/uplifts consistent with
deployment schedules for the ALPMS replacement hardware. Pending publication of a
deployment schedule for the ALPMS replacement hardware, garrisons shall budget for
6 months of hardware warranty extension/uplifts for the current system. FY 08 costs
shall be used for budgeting purposes. The replacement servers will include a multi year
warranty in place upon deployment. IMWR-HP will provide the negotiated schedule of
costs for FY 09 coverage and will confirm desired levels of garrison ALPMS hardware
warranty coverage in a data call anticipated in 4th quarter FY 08.

   c. Preprinted materials should continue to be ordered as necessary.

9. TRAINING. POC is Jonina Asmundsdottir, DSN 761-5211, COM (703) 681-5211,
FAX (703) 681-5342 or e-mail:

The Professional Development program is centrally funded for participation in the
following curriculums: Penn State University and Galaxy training program and specific
centrally funded items pertinent to the annual Lodging Training Seminar.
Reimbursement procedures will be provided to attendees as part of the registration and
acceptance process.

codes/definitions as stated at DFAS 37-1, Chapter 32 for use by Army Lodging activities
will be published in the FY 09 budget template at the GLAC DESCRIPTION Tab 12.


                                                                             Enclosure 6