Ellen M. Pint - Public-Private Partnerships, Książki USA
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Preface
This document describes private-sector involvement in the provision of
support services in the U.K. Ministry of Defence (MoD) and the U.S. Army. It
provides an overview of U.K. privatization and outsourcing initiatives, and it
compares U.K. and U.S. Army activities in housing, base operations, and
logistics. It is based upon four background papers prepared for a joint U.S.-U.K.
conference on Privatizing Military Installation Assets, Operations, and Services,
which was held April 14–16, 2000, at Ditchley Park, Oxfordshire, U.K. The
conference was sponsored by the Assistant Secretary of the Army for
Installations and Environment and was attended by senior military leaders,
government civilians, and industry representatives from the United States and
the United Kingdom.
This document and the conference proceedings (Ellen M. Pint and Rachel
Hart,
Public-Private Partnerships: Proceedings of the U.S.–U.K. Conference on
Military Installation Assets, Operations, and Services,
Santa Monica, CA: RAND,
CF-164-A, 2001) should be of interest to government, military, and industry
readers who would like to learn about existing U.S. and U.K. outsourcing and
privatization efforts, as well as how the military might make more effective use
of the private sector in providing support functions.
This research was sponsored by the Assistant Secretary of the Army for
Installations and Environment and conducted in the Military Logistics Program
of RAND Arroyo Center. The Arroyo Center is a federally funded research and
development center sponsored by the United States Army.
iii
Figures
2.1. Number and Value of PFI Contracts Completed
..............
13
2.2. Competition and Contracting in SET Expenditure
.............
30
2.3. Pricing Methods for MoD Contracts
.......................
30
5.1. Budgeted Flow of Funds in FY99
.........................
79
5.2. Pre-DLO Logistics Commands
...........................
81
5.3. New Defence Logistics Organisation Command Structure
.......
83
5.4. Customer Purchases of DLRs per System
...................
92
5.5. Customer Purchases of DLRs per Flying Hour/Vehicle Mile
.....
92
5.6. Baseline Distribution of Order-and-Ship Time
................
94
5.7. Improvement in Order-and-Ship Time at Fort Bragg
...........
95
F.1. The Married Quarters Sale Process
........................
126
G.1. Previous Construction Management Model
..................
130
G.2. Prime Contractor Construction Management Model
...........
131
ix
Tables
2.1. Timeline of Major U.K. Initiatives
.........................
5
2.2. Characteristics of Organizational Forms
....................
7
2.3. Efficiency Savings for MoD as a Whole
.....................
27
2.4. Major Procurement Project Management Performance
..........
28
2.5. Competition and Contracting in Science, Engineering,
and Technology Expenditure
............................
29
3.1. Availability of Married Quarters Housing
...................
34
3.2. Operating Expenditures Versus Housing Allowances at Army
Installations
.........................................
36
3.3. External and Internal Appraisals of Sale Value
...............
39
3.4. Housing PFI Projects
..................................
40
3.5. Fort Carson Community Venture Initiative Timeline
...........
45
3.6. Residential Communities Initiative Pilot Projects
..............
47
4.1. Progress of Market Testing, 1987–1992
.....................
52
4.2. A-76 Competitions Announced by Major Commands,
FY97–FY99
..........................................
65
5.1. MoD Logistics Inventories, Personnel, and Budgets in
1998–1999
..........................................
76
5.2. DoD Logistics Inventories, Personnel, and Operating Costs
in FY99
............................................
77
5.3. Valuations of the Dockyards
.............................
86
5.4. Completed PFI Projects in Logistics
.......................
87
5.5. Logistics PFI/PPP Projects in Procurement
..................
89
115
E.1. MoD Executive Agencies as of December 1999
................
121
F.1. External and Internal Appraisals of Sale Value
...............
127
H.1. Valuations of the Dockyards
.............................
137
xi
C.1. Completed (Signed) MoD PFI Contracts FY95–96 to FY00–01
.....
Summary
This report provides an overview of private-sector involvement in the
provision of support services in the U.K. Ministry of Defence (MoD) and the U.S.
Army. First, we provide an introduction to outsourcing and privatization
initiatives in the United Kingdom. We then detail the application of these
initiatives to housing, base operations, and logistics services in the United
Kingdom and offer examples of comparable U.S. Army initiatives. Each chapter
ends with “lessons learned,” summarizing problems encountered and
recommending methods to integrate private-sector organizations and market
institutions to improve the performance and reduce the cost of military support
services.
The information in this report was originally prepared as background
material for a three-day conference on Privatizing Military Installation Assets,
Operations, and Services, held April 14–16, 2000, at Ditchley Park, Oxfordshire,
U.K. The conference was sponsored by the Assistant Secretary of the Army for
Installations and Environment. Participants included senior military leaders,
government civilians, and industry representatives from the United States and
the United Kingdom. The purpose of the conference was to discuss the British
experience with privatization and explore its applicability to the U.S. Army.
OVERVIEW OF U.K. PRIVATIZATION INITIATIVES
In the United Kingdom, a wide range of military support services are
performed by unified, cross-service agencies making substantial use of private
suppliers and competitive mechanisms. Over the past 20 years, top-down
initiatives undertaken by the governments of three Prime Ministers have
provided the impetus for this high level of private-sector involvement.
These initiatives can be categorized into three broad types. The first type
directly increases private-sector involvement in providing assets and services to
MoD (these include Market Testing, Privatization, Competing for Quality [CFQ],
the Private Finance Initiative [PFI], Public-Private Partnerships [PPP], and
Trading into Wider Markets). The second type incorporates market-like
mechanisms into public-sector organizations (these include Executive Agencies,
Resource Accounting and Budgeting [RAB], and the implementation of
recommendations generated by the Strategic Defence Review and Modernising
Government). The third type changes the way MoD conceives and designs
contracts with the private sector (these include the Levene Reforms, Building
Down Barriers [BDB], the Smart Procurement Initiative, and Restructuring the
Industrial Base).
Because of a lack of published data or follow-up studies, it is difficult to
assess how these initiatives have affected the cost and performance of specific
MoD services. However, there are some more general indicators of MoD’s
progress in implementing efficiency savings, procurement reforms, outsourcing,
xiii
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Preface
This document describes private-sector involvement in the provision of
support services in the U.K. Ministry of Defence (MoD) and the U.S. Army. It
provides an overview of U.K. privatization and outsourcing initiatives, and it
compares U.K. and U.S. Army activities in housing, base operations, and
logistics. It is based upon four background papers prepared for a joint U.S.-U.K.
conference on Privatizing Military Installation Assets, Operations, and Services,
which was held April 14–16, 2000, at Ditchley Park, Oxfordshire, U.K. The
conference was sponsored by the Assistant Secretary of the Army for
Installations and Environment and was attended by senior military leaders,
government civilians, and industry representatives from the United States and
the United Kingdom.
This document and the conference proceedings (Ellen M. Pint and Rachel
Hart,
Public-Private Partnerships: Proceedings of the U.S.–U.K. Conference on
Military Installation Assets, Operations, and Services,
Santa Monica, CA: RAND,
CF-164-A, 2001) should be of interest to government, military, and industry
readers who would like to learn about existing U.S. and U.K. outsourcing and
privatization efforts, as well as how the military might make more effective use
of the private sector in providing support functions.
This research was sponsored by the Assistant Secretary of the Army for
Installations and Environment and conducted in the Military Logistics Program
of RAND Arroyo Center. The Arroyo Center is a federally funded research and
development center sponsored by the United States Army.
iii
Figures
2.1. Number and Value of PFI Contracts Completed
..............
13
2.2. Competition and Contracting in SET Expenditure
.............
30
2.3. Pricing Methods for MoD Contracts
.......................
30
5.1. Budgeted Flow of Funds in FY99
.........................
79
5.2. Pre-DLO Logistics Commands
...........................
81
5.3. New Defence Logistics Organisation Command Structure
.......
83
5.4. Customer Purchases of DLRs per System
...................
92
5.5. Customer Purchases of DLRs per Flying Hour/Vehicle Mile
.....
92
5.6. Baseline Distribution of Order-and-Ship Time
................
94
5.7. Improvement in Order-and-Ship Time at Fort Bragg
...........
95
F.1. The Married Quarters Sale Process
........................
126
G.1. Previous Construction Management Model
..................
130
G.2. Prime Contractor Construction Management Model
...........
131
ix
Tables
2.1. Timeline of Major U.K. Initiatives
.........................
5
2.2. Characteristics of Organizational Forms
....................
7
2.3. Efficiency Savings for MoD as a Whole
.....................
27
2.4. Major Procurement Project Management Performance
..........
28
2.5. Competition and Contracting in Science, Engineering,
and Technology Expenditure
............................
29
3.1. Availability of Married Quarters Housing
...................
34
3.2. Operating Expenditures Versus Housing Allowances at Army
Installations
.........................................
36
3.3. External and Internal Appraisals of Sale Value
...............
39
3.4. Housing PFI Projects
..................................
40
3.5. Fort Carson Community Venture Initiative Timeline
...........
45
3.6. Residential Communities Initiative Pilot Projects
..............
47
4.1. Progress of Market Testing, 1987–1992
.....................
52
4.2. A-76 Competitions Announced by Major Commands,
FY97–FY99
..........................................
65
5.1. MoD Logistics Inventories, Personnel, and Budgets in
1998–1999
..........................................
76
5.2. DoD Logistics Inventories, Personnel, and Operating Costs
in FY99
............................................
77
5.3. Valuations of the Dockyards
.............................
86
5.4. Completed PFI Projects in Logistics
.......................
87
5.5. Logistics PFI/PPP Projects in Procurement
..................
89
115
E.1. MoD Executive Agencies as of December 1999
................
121
F.1. External and Internal Appraisals of Sale Value
...............
127
H.1. Valuations of the Dockyards
.............................
137
xi
C.1. Completed (Signed) MoD PFI Contracts FY95–96 to FY00–01
.....
Summary
This report provides an overview of private-sector involvement in the
provision of support services in the U.K. Ministry of Defence (MoD) and the U.S.
Army. First, we provide an introduction to outsourcing and privatization
initiatives in the United Kingdom. We then detail the application of these
initiatives to housing, base operations, and logistics services in the United
Kingdom and offer examples of comparable U.S. Army initiatives. Each chapter
ends with “lessons learned,” summarizing problems encountered and
recommending methods to integrate private-sector organizations and market
institutions to improve the performance and reduce the cost of military support
services.
The information in this report was originally prepared as background
material for a three-day conference on Privatizing Military Installation Assets,
Operations, and Services, held April 14–16, 2000, at Ditchley Park, Oxfordshire,
U.K. The conference was sponsored by the Assistant Secretary of the Army for
Installations and Environment. Participants included senior military leaders,
government civilians, and industry representatives from the United States and
the United Kingdom. The purpose of the conference was to discuss the British
experience with privatization and explore its applicability to the U.S. Army.
OVERVIEW OF U.K. PRIVATIZATION INITIATIVES
In the United Kingdom, a wide range of military support services are
performed by unified, cross-service agencies making substantial use of private
suppliers and competitive mechanisms. Over the past 20 years, top-down
initiatives undertaken by the governments of three Prime Ministers have
provided the impetus for this high level of private-sector involvement.
These initiatives can be categorized into three broad types. The first type
directly increases private-sector involvement in providing assets and services to
MoD (these include Market Testing, Privatization, Competing for Quality [CFQ],
the Private Finance Initiative [PFI], Public-Private Partnerships [PPP], and
Trading into Wider Markets). The second type incorporates market-like
mechanisms into public-sector organizations (these include Executive Agencies,
Resource Accounting and Budgeting [RAB], and the implementation of
recommendations generated by the Strategic Defence Review and Modernising
Government). The third type changes the way MoD conceives and designs
contracts with the private sector (these include the Levene Reforms, Building
Down Barriers [BDB], the Smart Procurement Initiative, and Restructuring the
Industrial Base).
Because of a lack of published data or follow-up studies, it is difficult to
assess how these initiatives have affected the cost and performance of specific
MoD services. However, there are some more general indicators of MoD’s
progress in implementing efficiency savings, procurement reforms, outsourcing,
xiii
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