Outsourcing Defence Housing

A Comparative Study of the Defence Housing Australia and the Canadian Forces Housing Agency initiatives

Abstract

Defence housing as a component of Ministries of Defence estate has a direct impact on the welfare of personnel and their families and affects operational efficiency of personnel. Meeting these housing obligations to troops, particularly at the end of the twentieth century, has been a daunting challenge to Ministries of Defence (MODs) globally. The phenomenon is, however, more pronounced in Africa due to dwindling budgetary support to MODs. The result has been an increasing shortfall in Defence housing which is impacting negatively on the military culture, outlook and operational effectiveness of personnel. To deal with the housing challenge, some Defence Forces in Africa have explored the Public Private Partnership (PPP) arrangements. A PPP arrangement involves collaboration between a government agency and a private-sector company in the financing, building and operation of public projects. Most of these PPP arrangements have, however, been ad hoc and failed to meet the best practices requirements on planning, organization and management. This study engages in a comparative analysis of the Defence Housing Australia and Canadian Forces Housing Agency initiatives drawing from existing literature on the two housing schemes. It identifies similarities and differences between the two initiatives from planning as well as organizational and management perspectives. The paper posits that the engagement of private expertise in a PPP arrangement is a viable option as MOD-owned lands mitigate fixed cost that can be negotiated away for a lower variable cost spread over a period of time. Similarly, African Defence Forces could ensure efficient asset management through large-scale management contracts by bringing onboard other security agencies such as the Police Service, Immigration Service, Customs and Prison Services. Elaborate governance and management practices could be useful in the provision of housing to personnel.