HRSOS: A decision support system to facilitate the privatization of military housing

The armed services must provide their personnel with acceptable housing at minimum cost within the vicinity of military installations. To achieve these housing objectives, the U.S. Department of Defense (DoD) has entered into experimental joint ventures with private developers to construct attractive housing projects on military installation property, with some of the projects reserved for military personnel. To support the analysis of the joint ventures, DoD needed a methodology that would help officials evaluate the financial feasibility and cost implications of the housing projects. A decision support system, called the Housing Revitalization Support Office System (HRSOS), was developed to provide the necessary support. This paper describes the decision support system and its underlying methodology. It outlines the process used to determine financially feasible privatized military housing initiatives, reviews the decision support system created to support the process, and describes its application at the US Department of Defense. The paper also discusses the implications for military housing management, public finance, and operations research.