NEWS RELEASE from the United States Department of Defense
No. 531-02 (703)697-5131(media) IMMEDIATE RELEASE October 17, 2002 (703)428-0711(public/industry)
DoD Issues New Guidance For Privatizing Utility Systems
The Department of Defense has released new guidance to assist military services and defense agencies in privatizing
nearly 1,600 utility systems located on military installations worldwide.
The guidance will significantly enhance DoD efforts to privatize its roughly $50 billion inventory of electric, natural
gas, water and sewage utility systems. By incorporating five years of lessons learned and more consistently addressing
industry concerns, the guidance will encourage participation by regulated and non-regulated members of the utility
As a key feature the new guidance requires the military services to use a DoD-approved cost analysis model, which will
better evaluate the costs and benefits of privatization. The new guidance also supports the DoD goal to upgrade all
facilities by fiscal 2010.
The guidance and additional information may be found at http://www.acq.osd.mil/ie/utilities/privatization.htm .