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 et al. | Go to book overview
and competition. Over the last few years, these initiatives have helped MoD meet the annual efficiency savings targets of 3–4 percent in its Public Service Agreement with the Central Government. The MoD has also increased the value of work contracted out and the proportion of contracts subject to competition. The National Audit Office's 1999–2000 report on major procurement projects found a slight reduction in forecasted cost overruns but a continued increase in schedule slippage.Several general lessons learned emerge from a more qualitative review of the U.K. initiatives and experience with greater involvement of the private sector in providing defense support services.
To be an “intelligent customer,” the MoD must define its requirements in terms of desired outputs or performance, not inputs or tasks to be performed.
Source selection should emphasize best value for money rather than cost reduction.
The MoD must take a long-term, strategic view of its requirements and allow for flexibility in its contracts to meet changing needs.
Contract risks must be identified and allocated to the parties best able to manage them.
Partnering with contractors promotes continuous improvement over the lifetime of the contract.
Accurate information on costs and performance is needed to monitor both contractors and in-house providers.
The MoD must consider which activities are appropriate for privatesector market forces and profit motives, and which might be “inherently governmental.”
Mechanisms are needed to collect and disseminate information about best practices and lessons learned.

HOUSING

Background

In the United Kingdom, approximately 30 percent of eligible officers and 70 percent of eligible enlisted personnel live in married quarters housing managed by the MoD. Service personnel who live in married quarters pay accommodation charges (based on the size and quality of the house provided) that are deducted from their pay. A 1991 Housing Task Force concluded that the quality of the housing stock was inadequate, and that its high vacancy rates indicated inefficient management. The task force recommended implementation of new management and ownership structures. The Defence Housing Executive (DHE) was created in 1995 to take over the management of all married quarters in England, Scotland, and Wales from the individual armed services. Although the sale of 57,400 married quarters in England and Wales to a private contractor was completed in November 1996, the DHE continues to manage approximately 62,000 married quarters in the United Kingdom, including those that were sold

-xiv-

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Public-Private Partnerships: Background Papers for the U.S.-U.K. Conference on Military Installation Assets, Operations, and Services
Table of contents

Table of contents

  • Title Page *
  • Preface iii
  • Contents v
  • Figures ix
  • Tables xi
  • Summary xiii
  • Abbreviations xxiii
  • 1 - Introduction 1
  • 2 - U.K. Overview 3
  • 3 - Housing 33
  • 4 - Base Operations 51
  • 5 - Logistics 75
  • 6 - Comparisons and Conclusions 103
  • Appendix A - Conference Participants 107
  • Appendix B - Short Definitions of Key U.K. Initiatives and Terms 111
  • Appendix C - Mod Pfi Contracts 115
  • Appendix D - Case Studies of Two Pfi Contracts 117
  • Appendix E - Mod Executive Agencies 121
  • Appendix F - Privatization of Mod Married Quarters Housing 123
  • Appendix G - Mod Initiatives in Construction and Property Management 129
  • Appendix H - Privatization of the Royal Dockyards 133
  • Bibliography 139
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