In recent decades the U.S. Department of Defense has developed new budget and operation priorities. As a result, initiatives are underway addressing base closure/realignment, utility privatization, etc. Privatization is defined as the transfer of ownership and responsibility for operation, maintenance, repair, upgrade, and plant replacement of Department of Defense-owned utility distribution systems to the non-federal sector for an indefinite period. Such privatization, unless specifically indicated otherwise, does not include the supply of commodities, such as electric power or natural gas, but simply involves ownership of the physical distribution system. The new owner charges the Government a rate for providing "distribution service."
GDS is uniquely positioned, by virtue of our expertise and continuing engagements in the privatization effort, to offer strategic, technical, financial, and other assistance to prospective bidders. Since the inception of the utility privatization initiative in 1997, our experienced staff of consultants, analysts, and engineers has provided a full range of services including:
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Monitoring Government Privatization Activity
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Responding to Government Requests for Expressions of Interest
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Strategy Consultation
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Review of RFPs Issued by Government
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Engineering Condition Assessment and Due Diligence (through Hi-Line Engineering, a GDS Company)
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Pro Forma Financial Analysis
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Full-Service Proposal Development and Production
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Negotiation Support
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Implementation Assistance
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Contract Administration
Selected Clients
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Electric Cooperatives
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Investor-Owned and Municipal Water/Wastewater Utilities
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Natural Gas Utilities
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Naval Facilities Engineering Support Command – Southwest Division
GDS has successfully assisted clients throughout the country in their efforts to acquire the utility electric, gas, and water distribution systems and wastewater collection systems formerly owned by dozens of Department of Defense installations.
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Contacts
Lynn
Lanier
Authorization
Congressional authorization for privatization of utility distribution systems on U.S. Military Installations was conveyed in 10 USC 2688, "UTILITY SYSTEMS: CONVEYANCE OF AUTHORITY." Furthermore, on November 10, 1997, the Secretary of Defense, Mr. William S. Cohen, issued a directive to all Military Commands that utility systems [electric, gas, water and wastewater, and thermal (steam)] would be transferred to the Non-Department of Defense Sector; essentially, the private sector. The only exceptions would be systems on military bases with unique security situations or systems that would not present the military with an economic advantage if privatized.
Useful Links
GAO Report on Utility Privatization
May 2005 Report Addressing Management Issues Requiring Attention in Utility Privatization
Army Utilities Privatization
Contains schedules, bulletins, and links regarding the Army's privatization efforts
DOD Utilities Privatization Program Website
Defense Energy Support Center Utilities Privatization Homepage
Contains links to all current DESC administered RFPs.
Electronic Posting System
Helpful in tracking down Air Force RFPs. Searchable by solicitation number.
Naval Facilities E-Solicitations
Login with username: GDS (password: navy). Access to current Navy privatization
RFPs. Please do not edit any account information.
Air Force Civil Engineer Support Agency
Access to one of the most extensive sets of utilities privatization resources available on the web.
Federal Acquisition Regulations
Comprehensive database of all federal regulations pertaining to utilities privatization contracts.
Presentations from November 19-20, 2002 Army Utilities Privatization
Meeting
01_UtilitiesPrivatization.ppt
02_OSDOverview.ppt
03_ArmyProgram.ppt
04_IMAReport.ppt
05_IMARegionalPrivatization.ppt
06_NorthwestPrivatizationDetailedBrief.ppt
07_SoutheastPrivatization.ppt
08_HuntsvilleEngCtr.ppt
09_DESC-Negotiations.ppt
10_ProgramIssues.ppt
11_StrategyforSmallUneconomicalSystems.ppt
12_ModernizationCriteriaforArmyOwnedSystems.ppt
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