Utilities Privatization

Thursday December 7, 2006

What is it? Owning and operating utility systems is not a core function of the Department of Defense (DoD). The Army has historically under funded our utilities infrastructure. The Utilities Privatization program seeks to leverage financing and economies of scale by turning over our systems to industry experts who will bring our utilities to industry standards. The intent is to obtain safe, reliable and efficient utility services for Army installations. Privatization also allows installation commanders to focus on core defense missions and functions by relieving them of activities that can be done more efficiently and effectively by others. DoD directed Defense Components to privatize all Service-owned electric, natural gas, water and wastewater utility systems unless security concerns required Federal ownership or privatization was uneconomical. The Army expects to complete the evaluation of our 351 Continental United States systems by September 2011.

What has the Army done? As of September 30, 2006, 118 systems in the United States have been privatized, 158 are uneconomical to privatize, and 75 are under evaluation. Overseas utility systems are generally owned by the host nation and are evaluated using host nation laws and international agreements, and are not included in the DoD Utilities Privatization initiative. Europe has privatized the operations and maintenance of 320 of its 589 utility systems.

What efforts does the Army plan to continue in the future? The Army will continue to evaluate and privatize all utility systems where this is economical. Utility systems that cannot be privatized will be re-capitalized using traditional funding sources such as the Operations & Maintenance and Military Construction appropriations.

Why is this important to the Army? Privatization of such utility systems is important because it results in safe, reliable and efficient utility services for Army installations and relieves installation commanders of activities that can be performed more efficiently and effectively by others and allows them to focus resources on their core missions.

For additional information click here.

For additional information on Utilities Privatization

For more information on this and other topics see** Addendum J in the Army Posture Statement.**

NEWS ABOUT THE ARMY

  • Army-Marine Doctrine Retools Way U.S. Fights Beyond Iraq (KC)
  • Fort Bliss Offers Example, Lessons for BRAC Gaining Posts (ARNews)
  • Lifesaver or Liability? (ABC)
  • Soldiers React to Iraq Study Group's Report (WCPO)

WAR ON TERROR NEWS

  • Panel Urges Basic Shift in U.S. Policy in Iraq (NYT)
  • Suicide Bomber Strikes at American Firm in Southern Afghanistan (EB | NYT)
  • Coalition Moving Iraqis Forward (MNF)
  • Quiet U.S. Bid to Talk to Iraqi Insurgents (EB | CSM)

OF INTEREST

  • Mother's Gift to Iraq Troops: A Lifesaving Toy (EB | PI)
  • 'Iron Soldiers' are Back in Baumholder (SAS)
  • All-American Bowl to Attract High School Recruits (ARNews)
  • Some Local Guard Members May Receive Bronze Star (TG)

WORLD VIEW

  • Senate Confirms Gates as Defense Secretary (DI | Story)
  • U.S Army States 10 Soldiers Killed in Iraq (KNA | Story)
  • U.S. Troops Doubt Early Withdrawal (STR | Story)
  • Former U.S. Army Contractor Admits Taking Bribes (IHT | Story)

WHAT'S BEING SAID IN BLOGS

  • Supporting Military Families (BS)
  • What we Should and Should Not Do: An Authoritative Voice...Day (BS)
  • Flag Up High (SP)
  • Rolling Victory Fast Update: 7 December 2006! (BS)

Subscribe to STAND-TO! to learn about the U.S. Army initiatives.

SENIOR LEADERS ARE SAYING

"The report issued today by the Iraq Study Group offers an opportunity for government leaders to come together and work toward a solution in Iraq, and the administration will take the report's recommendations very seriously"-President George W. Bush said yesterday, December 6, 2006, after receiving a copy of the report issued by the Iraq Study Group.

STAND-TO!

STAND-TO! is an information paper-based web platform that supports the U.S. Army’s strategic communication objectives.

The information papers -- written, approved and submitted by the Army agencies -- provide a broad, objective view of the Army’s current operations, doctrine and programs. The "Today’s Focus" topics highlight Army Staff initiatives and support Army wide strategic-level issues.

All published editions are sent to subscribers via email and archived daily in the STAND-TO! Archives.

STAND-TO! falls under the management of the Online and Social Media Division (OSMD) in the Office of the Chief of Public Affairs (OCPA).

Subscribe to STAND-TO! to learn about the U.S. Army initiatives.