Defense Department delays utilities privatization

The Defense Department is giving the military services and agencies more time-until 2010-to privatize utility systems at bases.

The Pentagon previously had told the services it wanted all 1,600 systems at installations across the country turned over to contractors by 2003, unless outsourcing would not save money or the systems needed to be maintained in-house for security reasons. But a myriad of problems, ranging from poorly written solicitations to the effects of nationwide electricity deregulation, has led to only a few dozen systems being privatized.

"To achieve innovative results, privatization must proceed in a deliberate manner that promotes industry interest and competition to the maximum extent possible," Paul Wolfowitz, deputy Defense secretary, wrote in an Oct. 9 memorandum announcing the new deadline.

The memo set several key program goals. For example, by September 2003, installations must have received requests for proposals on privatizing at least 80 percent of all utility systems, and have reached decisions on who will run at least 65 percent of the systems.

The Defense Department believes it can save millions of dollars and, more importantly, get better service and modernize aging utility systems through privatization.

The Defense Department's new guidance and additional information may be found at the department's utilities privatization Web site.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    View
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    View
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    View
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    View
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    View
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    View
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    View

When you download a report, your information may be shared with the underwriters of that document.