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:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

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