Utility Privatization Services

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.

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:

• Monitoring government privatization activity
• Responding to government requests for expressions of interest
• Strategy consultation
• Review of RFPs issued by government
• Engineering condition assessment and due diligence (through Hi-Line Engineering, LLC, a wholly owned subsidiary)
• Pro forma financial analysis
• Full-service proposal development and production
• Negotiation support
• Implementation assistance
• Contract administration

Selected Clients

GDS can help develop plans to better manage right-of-way and land holdings to help meet compliance requirements and develop carbon credit generation including:

• Electric cooperatives
• Investor-owned and municipal water/wastewater utilities
• Natural gas utilities
• Naval Facilities Engineering Support Command – Southwest Division