The Department of Defense has directed all military bases to evaluate "privatizing," or selling to a non-Department of Defense party, all their electric, gas, water, wastewater, and utility systems. This directive is in response to the Defense Department's position that bases focus resources and attention towards Department of Defense core competencies.
Utility Privatization is the transfer of operation, management and ownership of the electric, gas, water and wastewater distribution facilities to private owners when in the economic interests of the station. Under private party operation and ownership, the government will no longer own or be responsible for maintaining the utilities. These responsibilities will be transferred to the new owner. The base will continue to establish utility service requirements and be responsible for all day to day operations not associated with the distributions systems.
Credible interest has been expressed by outside parties in acquiring the utility distribution systems for Marine Corps Air Station Yuma. MCAS Yuma Facilities Maintenance Division, NAVFACENGCOM - Southwest Division, and the contractor, Navigant Consulting, Inc. have begun the process of evaluating our utility distribution systems. The analysis will include the long-term costs of ownership for operation, maintenance, and system improvements that would be incurred by the base if the systems were operated and maintained with accepted utility standards.
If found to be in the economic interest of the government, a Request for Proposal will be issued by the end of this year. Industry proposals will only be considered if the utility services proposed are sufficient to support the base in a reliable and efficient manner. To this point, MCAS Yuma has maintained highly reliable and efficient utility service thanks to its dedicated utility employees. All proposals received will be subject to these high standards of service.
If privatization options are found to be uneconomical for MCAS Yuma, the utility distribution systems will continue to remain the property of the U.S. Government. However, if the effort is deemed economical, a private party(s) will be selected as the new owner and operator of the MCAS Yuma utilities. In this situation, the approval of the selected party(s) and the transition process must be completed by 2003.
For further information please access the Privatization Hotline at (928) 269-3210.