CASE STUDIES

The Craddock Group - Case Studies

Case Studies

The case studies below represent a sample of our work and demonstrated results.

CLIENT: Washington Metropolitan Area Transit Authority (WMATA)

Strategic capital investment planning, Process improvement solutions, Development of technology solutions, Training

SUMMARY

The Washington Metropolitan Area Transit Authority (“WMATA”) has over $40 billion in physical assets that support the second-busiest rail transit and sixth-busiest bus system in the United States. However, significant capital investments are needed for replacement, repair, or rehabilitation to maintain a state of good repair.

Under Craddock Group leadership, the combined team with members from AECOM, Agiliko, and Parsage, was engaged to assist in developing a multi-year Capital Planning framework, strategy, and database to address asset needs and align capital investments based on organizational and regional transit priorities.

APPROACH

Incorporate lessons learned from previous capital planning experience to support annual agency-wide initiatives and investments anticipated to preserve, replace, repair, promote safety, and increase reliability or capacity in Metro systems and assets over the next 10 years.

Consolidate data into a web-based Capital Planning Tool that incorporates asset condition information and establishes project baselines through leveraging available asset data. Highlight and track targeted capital investments and establish business intelligence tools to enable informed decision-making.

Engage with WMATA leadership to set priorities and gather information from operations, maintenance, and engineering groups to validate proposed capital investments and manage future work planning and implementation strategies.

Develop communication and reporting mechanisms to transmit and execute the overall strategy to WMATA employees, increasing transparency and encouraging broad participation in the Capital Planning process.

RESULTS

  • Developed inaugural 10-Year Capital Plan that was presented and approved by the WMATA Board to highlight the organization’s capital investments and strategies over a long-term horizon, including investments needed to restore and maintain safety, reliability, and state of good repair of the system and prepare for a sustainable and equitable future of the region.
  • Released interactive Capital Program Dashboard to communicate the results of the capital programming process across WMATA. Implemented measures and documented organizational roles and responsibilities to help instill accountability across Metro, ensuring that the organization has baseline capital project data to communicate to stakeholders and track performance.

TEAM MEMBERS

  • Margot Boyd
  • Kim Burke
  • Tim Eachus
  • Haley Miller
  • Rachel Seay
  • Anna Shapiro
  • David Sisson
  • Maija Sunnarborg
  • Matthew Troy

Client: Department of Veterans Affairs

Real Property Site Due Diligence, Environmental Baseline Analysis, Valuation Analysis, Solicitation Support, Project Marketing, Developer Selection

BACKGROUND

As a result of demographic shifts and the general decrease in the Veteran population, the Department of Veterans Affairs (VA) today owns more real estate than it needs to efficiently accomplish its mission and spends significant financial resources managing and maintaining its underutilized assets.

The VA Maryland Healthcare System’s Fort Howard campus is a 95-acre campus with approximately 305,000 square feet of improvements located on the Fort Howard peninsula on the entrance to the Baltimore Harbor and surrounded by the Chesapeake Bay. After consolidating services into other VA Medical Centers in the area, VA’s only presence on the site is a Community Based Outpatient Clinic (CBOC).

VA retained The Craddock Group and its subcontractor, Jones Lang LaSalle, to provide a full range of Enhanced Use Lease (EUL) advisory and transaction support services.

RESPONSIBILITIES

The Craddock Group and Jones Lang LaSalle conducted a comprehensive site visit to collect available physical, historical and legal and regulatory data regarding the site’s land and improvements. The findings were analyzed and compiled into a comprehensive property plan that included a building inventory, property infrastructure and asset maps. The Team completed a highest and best use study of the site and produced a self-contained appraisal
compliant with the Uniform Standards of Professional Appraisal Practice (USPAP).

Based on the Phase I Environmental Assessment (EA), we identified environmental issues that would need to be addressed by any selected EUL developer. We drafted the RFP solicitation document based on stakeholder input and VA’s goals and objectives for the project. We developed the content for a dedicated project website to better market the opportunity and planned and hosted an Industry Forum event to inform interested real estate professionals of the EUL opportunity. We conducted proposal review and evaluation, which included assessments of the proposed fair market value and consideration to VA and the Offeror’s overall responsiveness to the requirements of the RFP.

RESULTS

Using our proposal analysis and recommendation, VA selected a developer for this EUL transaction. VA will receive a newly constructed 10,000 square foot CBOC as in-kind consideration, receive additional consideration through a profit-sharing rent structure and will save approximately $1.4 million per year in maintenance costs for the 95-acre campus. Once completed, the Fort Howard campus will be a 2,450,000 square foot mixed-use retirement-like community comprised of approximately 1,190 market rate and 230 affordable independent senior living units, 100 transitional and permanent supportive housing units, 140 assisted living beds, 32 skilled nursing beds, a 60 bed hospice, 110,000 square feet of retail and 128,000 square feet of common space elements, such as a community club house, museum, natatorium/gymnasium and theatre.

Client: Department of Veterans Affairs

Technical Support, Reporting, Benchmarking, Issue Resolution, Financial Analysis

BACKGROUND

Enhanced-Use Lease (EUL) legislation allows for redevelopment of underutilized land and buildings through long-term leases and public/private partnerships. The EUL program benefits Veterans and their families and the local community by providing new services and economic opportunities as properties are redeveloped. Benefits for Veterans include housing, mental health facilities, hospice centers, parking facilities and child-care facilities, among others.

The Department of Veterans Affairs (VA) engaged The Craddock Group and its subcontractor, Jones Lang LaSalle, to provide technical support in tracking the completion of project milestones for 38 EULs executed in December 2011.

RESPONSIBILITIES

The Craddock Group and Jones Lang LaSalle created slide presentations and associated fact sheets and talking points for internal and external stakeholders. We also provided weekly status reports on the 38 projects under development, consolidating and monitoring over 175 data elements for each of the 38 executed transactions in a single database. We attended weekly staff meetings and provided meeting minutes to capture lessons learned across projects and action items in the resolution of critical issues. We summarized key data for the Assistant Secretary for Management and other VA senior leaders. We created a repository of information pertinent to EUL transactions to be a resource for VA Portfolio Managers. Finally, we performed net present value analyses to support moving forward with EULs.

RESULTS

The EUL Program continues to be touted for its benefits to VA and Veterans and their families. The EUL legislation that had expired at the end of 2011 was reauthorized through 2023.

Client: Department of Veterans Affairs

Strategic Support, Transaction Assistance, Project and Portfolio Management Oversight

BACKGROUND

Launched in 2009, the Building Utilization Review and Reuse (BURR) initiative is a strategic effort undertaken to assess buildings and land on VA Medical Center campuses with the potential to provide affordable housing for homeless Veterans and Veterans at risk of homelessness and their families. The 38 EUL projects executed in December 2011 include several BURR sites.

The Department of Veterans Affairs (VA) engaged The Craddock Group and its subcontractor, Jones Lang LaSalle, to provide strategic support in completing due diligence and obtaining financing for 38 EULs executed in December 2011.

RESPONSIBILITIES

The Craddock Group and Jones Lang LaSalle provided real estate transaction assistance to VA for each of the 38 EUL projects including reviewing development, operations, and financing plans; reviewing environmental assessments; reviewing zoning and taxation agreements; helping negotiate financing terms and commitments; updating lease documents; assisting VA with the allocation of government capital contributions; and training Portfolio Managers on private sector real estate best practices.

RESULTS

By reviewing project documents in detail and communicating with Portfolio Managers and other project stakeholders, we were able to determine the greatest risk factors for each project and gauge each project’s viability. In turn, we involved senior leadership in a timely manner and recommend mitigating strategies.

Client: Department of Veterans Affairs

Capital Investment Planning, Data Validation, Project Prioritization

BACKGROUND

With limited funding and an aging infrastructure, the Department of Veterans Affairs (VA) sought to implement a comprehensive capital planning effort to right-size its inventory. VA utilizes a planning process known as Strategic Capital Investment Planning (SCIP) to identify service gaps, enable the development of capital and non-capital solutions to address needs, and to prioritize proposed projects for funding.

As part of the SCIP process, each VA administration/region creates long-term (10-year) capital plans known as “Action Plans,” which contain the collection of projects that are proposed to address existing performance
gaps (e.g., space, utilization, access, facility condition, energy, etc.) and enhance Veteran services. Detailed Business Cases, which include a cost-effectiveness analysis, are then created for certain projects and are submitted and scored to prioritize projects.

VA retained Jones Lang LaSalle and its subcontractor, The Craddock Group, LLC, to assist with implementation of the SCIP process.

RESPONSIBILITIES

The Craddock Group worked with Jones Lang LaSalle to provide assistance to VA in department-wide, long-term investment planning efforts involving construction, leasing, and capital improvements. We validated Action Plans submitted by each administration/region, ensuring correct project categorization and adequate gap closure. The Team created Action Plan gap and cost summaries, graphs, and charts to support VA’s evaluation of the over 4,000 unique projects. Once Action Plans were finalized, the Team validated more than 1,200 Business Cases for projects requesting funding in Fiscal Year 2013. This was a critical step to help improve the quality and consistency of the Business Cases prior to scoring by VA personnel. Using decision-support software to normalize scoring and to conduct optimization modeling, we helped established methods to prioritize projects.

RESULTS

The SCIP process provides an integrated comprehensive planning process for capital programs at 156 VA medical centers across the nation and helps improve safety and security; VA better maintain its existing capital portfolio; increase Veteran access to services; right-size VA’s capital inventory; optimize VA’s cost of ownership; ensure an equal distribution of funding across the entire VA system; and provide for Secretarial Initiatives, such as ending homelessness among Veterans.

Representative Contracts


The Craddock Group Prime Contracts

Fort Howard, Maryland Enhanced-Use Lease (2010-2012)

Enhanced-Use Lease (EUL) Program Management and Technical Support (2012)

Enhanced-Use Lease (EUL) Program Management and Strategic Support (2012)

FY 2019 Multi-Cycle SCIP Process Support and Execution (2016-2018)

FY 2018 Non-IT Business Case Applications (2016-2017)

VHA Healthcare Delivery System Design Capability (2016-2017)

Enhanced Use Lease (EUL) Program Management – Technical and Strategic Support (PMTSS) IDIQ Task Order 1: Technical, Analytic, and Transaction Services Support for VA EUL Project in West Los Angeles, California (2016-2021)

Enhanced Use Lease (EUL) Program Management – Technical and Strategic Support (PMTSS) IDIQ Task Order 2: EUL PMTSS (2017-2021)

Real Property Strategic Utilization (RPSU) Service Lines IDIQ Contract: Technical, Analytic, and Transaction Services Support for the VA Historic Reuse Program Pilot in Sausalito, California (2017-2019)


The Craddock Group Subcontracts

Department of Veterans Affairs (VA) Strategic Capital Investment Plan (SCIP)

  • SCIP Space Analysis Support and Execution (2011)
  • SCIP Automation (2011)
  • SCIP Review Panel (2012)
  • SCIP Process Support and Execution (2012, 2013, 2014, 2015, 2016)

VA Budget Support

  • OMB 300 Major Lease Applications (2016)
  • VA Lease Budget Model (2016)
  • VHA Activation Cost Budget Model (2011)
  • VHA Activation Budget Cost Model Development/Process Improvement (2016)

VA Program/Process Management

  • VA Lease Program/Lease Tracking Model including Lease Process Training/Document Support (2016)
  • VA Enhanced Use Lease Program Management Technical and Strategic Support (2013, 2014, 2015)
  • Palo Alto Healthcare System Hadron Feasibility Study (2017)

Department of Defense, Office of the Secretary of Defense

  • Military Housing Privatization Initiative (MHPI), Program Management Support (2016-2017)

Department of Transportation

  • Volpe Center Exchange Project; City of Cambridge, MA (2017-2018)