Utility Privatization
 GUERNSEY has been the leading Department of Defense (DoD) utility privatization consultant since 1993, assisting with more than 300 DoD utility system privatizations at more than 100 installations throughout the continental USA and abroad.
GUERNSEY was the first A/E consultant chosen to assist the DoD when selected for an all-requirements contract for US Army installations in 1993. Our involvement predates the active involvement of Office of Secretary of Defense and the subsequent guidance that came through the various Defense Reform Initiative Directives (DRIDs). Commensurate with our work with the US Army, we have successfully won contracts to assist the Air Force and Navy with their utility privatization actions. Whereas subtle differences exist between the utility privatization processes used by the various DoD components, the underlying basic principles are similar:
- Preparing work plans involving personnel, materials, communication plans, detailed schedules and strategies to perform utility privatization (UP) actions
- Inventory and condition assessment of existing utility systems, including all legal, existing contractual, commodity and real estate issues associated with the utility system
- Environmental baseline assessments
- Analysis and justification for the value of the current utility system, considering factors including engineering assessments, cash flow models, comparable sales models, etc.
- Assist developing the request for proposal (RFP) for terms of sale
- Assist determining credible responses to the RFP
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- Development of government “should costs”
- Solicitation assistance such as developing a technical library, assisting the potential utility providers during site visits and answering questions of potential providers
- Technical and cost advisory support in source selection
- Economic analysis comparisons and negotiations with utility providers using acceptable economic cost comparison models
- Assistance in obtaining approval from appropriate service chain-of-command levels
- Assistance and support in obtaining Congressional approval
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GUERNSEY’s utility privatization team consists of professionals with backgrounds in utility engineering, utility regulation, utility economics, utility contract negotiations, understanding of federal acquisition regulations, environmental issues and real estate issues.
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