Public-Private Partnerships

Background Papers for the U.S.-U.K. Conference on Military Installation Assets, Operations, and Services

by Ellen M. Pint, John R. Bondanella, Jonathan Cave, Rachel Hart, Donna J. Keyser

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The U.S. Department of Defense and the U.K. Ministry of Defence (MoD) face a common challenge: to modernize their forces to meet changing military threats under reduced budgets. To meet this challenge, both organizations are increasingly interested in leveraging private sector capital and expertise to provide defense activities and support services. This report provides an overview of private-sector involvement in the provision of defense support services in the U.K. MoD and the U.S. Army. It describes outsourcing and privatization initiatives in the United Kingdom from 1980 to the present. It then details the application of these initiatives to housing, base operations, and logistics services in the United Kingdom and offers examples of comparable U.S. Army initiatives. This report is based on background materials prepared for a three-day conference on privatizing military installation assets, operations, and services held at Ditchley Parkin Oxfordshire, England, on April 14-16, 2000. The conference was organized by the Assistant Secretary of the U.S. Army for Installations and Environment. It brought together U.S. and U.K. defense officials, U.S. Army leaders, and business executives from both countries to discuss the British experience with privatization and explore its applicability to the U.S. Army.

Table of Contents

  • Chapter One

    Introduction

  • Chapter Two

    U.K. Overview

  • Chapter Three

    Housing

  • Chapter Four

    Base Operations

  • Chapter Five

    Logistics

  • Chapter Six

    Comparisons and Conclusions

  • Appendix A

    Conference Participants

  • Appendix B

    Short Definitions of Key U.K. Initiatives and Terms

  • Appendix C

    MoD PFI Contracts

  • Appendix D

    Case Studies of Two PFI Contracts

  • Appendix E

    MoD Executive Agencies

  • Appendix F

    Privatization of MoD Married Quarters Housing

  • Appendix G

    MoD Initiatives in Construction and Property Management

  • Appendix H

    Privatization of the Royal Dockyards

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The research described in this report was performed under the auspices of RAND's Arroyo Center.

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