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Utilities Privatization

Utilities Privatization (UP) represents the Army's investment strategy to recapitalize the Army's utility infrastructure (electrical, natural gas, water and wastewater) and bring the utility systems up to current industry standards. The utility systems are privatized only where the life cycle costs across the contract term are economical. Utility systems are exempted if the costs are unfavorable for the Army or for security reasons. The current portfolio (as of 03 2013) of privatized systems is estimated to be a portfolio of $18-20 billion.

The Army's UP Program addresses both the Pre-Award and Post-Award aspects of Utility Privatization. The Army's UP processes are fully consistent and compliant with the Congressional, Department of Defense (DoD) and Department of Army (DA) Policy & Guidance. Responsibility for the execution of the Army UP Program is through the Office of the Assistance Chief of Staff for Installation Management (OACSIM). The OACSIM UP Program Manager coordinates all UP activities and represents the Army in communications with Program Stakeholders and Points of Contact throughout the Army and DoD.

Of 355 Army-wide utility systems, 307 have been evaluated, 144 are privatized (39 electrical, 38 natural gas, 31 water, 33 wastewater and 3 Heat/Power), and 158 systems are not economical for privatization (as of 03 2013). The remaining 53 systems await initial evaluation. The Army will also re-evaluate 39 of the 158 uneconomical systems based on industry participation and lessons learned.

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