Utility Privatization in the Military Services: Issues, Problems, and Potential Solutions
![handle is hein.journals/airfor53 and id is 61 raw text is: UTILITY PRIVATIZATION IN THE
MILITARY SERVICES: ISSUES, PROBLEMS,
AND POTENTIAL SOLUTIONS
MAJOR JEFFREY A. RENSHAW*
I. INTRODUCTION
The Department of Defense (DoD) issued Defense Reform Initiative
Directive No. 9 (DRID No. 9), Privatizing Utility Systems, on 10
December 1997, thus launching the DoD's Utility Privatization initiative. It
directed the military departments to develop a plan for privatizing all of their
utility systems (electric, water, waste water and natural gas) by January 1,
2000, except those needed for unique security reasons, or when privatization is
uneconomical.' Defense Reform Initiative Directive No. 49, Privatizing
Utility Systems (DRID No. 49), came along a year later, fleshing out the
DRID No. 9 mandate and extending the date for the military services to award
utility privatization contracts for all eligible utility distribution systems to no
later than 30 September 2003.2 Defense Reform Initiative Directive Nos. 9
and 49 were issued pursuant to authority granted by Congress in 10 U.S.C.
§ 2688,3 which allowed, but did not require, federal agencies, including the
military services, to privatize their utility systems.
* Major JeffreyA. Renshaw (B.A., Louisiana State University; ID., Loyola University of the
South; LL.M, The Judge Advocate General School of the Army) is a United States Air Force
Judge Advocate currently assigned as a contract appeals trial attorney at Headquarters, Air
Force Material Command, Wright-Patterson Air Force Base, Ohio. He is a member of the
Louisiana State Bar.
1 U.S. DEP'T OF DEFENSE, OFFICE OF THE DEPUTY SECRETARY OF DEFENSE, DEFENSE REFORM
INITIATIVE DIRECTIVE NO. 9 (Dec. 1997) [hereinafter DEFENSE REFORM INITIATIVE
DIRECTIVE No. 9].
2 U.S. DEP'T OF DEFENSE, OFFICE OF THE DEPUTY SECRETARY OF DEFENSE, DEFENSE REFORM
INITIATIVE DIRECTIVE No. 49 (Dec. 1998) [hereinafter DEFENSE REFORM INITIATIVE
DIRECTIVE No. 49].
3 As provided by 10 U.S.C. § 2688(a) (1997):
CONVEYANCE AUTHORITY. - The Secretary of a military
department may convey a utility system, or part of a utility
system, under the jurisdiction of the Secretary to a municipal,
private, regional, district, or cooperative utility company or
other entity. The conveyance may consist of all right, title, and
interest of the United States in the utility system or such lesser
estate as the Secretary considers appropriate to serve the
interests of the United States.
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Utility Privatization in the Military Services: Issues, Problems, and Potential Solutions
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