Utilities Privatization in the United States Air Force

Abstract

The Department of Defense (DOD) has roughly 2,600 electric, water, wastewater,and natural gas utility systems valued at an estimated $50 billion. In 1997, DOD decided that privatization was the preferred method for attaining industry standards for utility systems. The Air Force has ownership of 502 of these utility systems. This thesis will provide a background of DOD policy, the Air Force's Utilities Privatization Program and Guidance, findings made by the Government Accountability Office (GAO) and actions taken to remedy those findings, and discuss several issues that personnel involved in utilities privatization should understand and remain vigilant of during the privatization process and throughout the life of the contracts.