The process carried out within the Defense Department to complete the procurement process for awarding utilities privatization contracts is taking too long, the House Armed Services Committee says in report language attached to the chairman’s mark of the fiscal 2019 defense authorization bill. In some instances it has taken more than five years from initial feasibility review by a military department to the award of a contract to a utility provider.
“After two decades of experience with utilities privatization, the committee is concerned that procedures have not improved. The department’s protracted process for awarding privatization contracts deters potential utility providers from considering such a contract,” the lawmakers stated.
To overcome past challenges with the utilities privatization program, the committee directs the Government Accountability Office to submit a report to the House and Senate Armed Services committees by Sept. 30, 2019, which addresses:
- the specific steps of the utility privatization process, the average amount of time to complete each step and the contributing factors for the time each step takes;
- the extent to which best practices have been identified and are shared between the services and the Defense Logistics Agency, and other stakeholders to improve the process; and
- recommendations to improve the process.
Photo by Jason Kelly