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15160000May14 Curt Wexel, PE 1 Assistant Chief of Staff for Installation.

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Presentation on theme: "15160000May14 Curt Wexel, PE 1 Assistant Chief of Staff for Installation."— Presentation transcript:

1 May14 Curt Wexel, PE 1 Assistant Chief of Staff for Installation Management Army Utilities Privatization (UP) & Water Security Defense Communities National Summit 5 June 2014 Curt Wexel, P.E. UP Program Manager Assistant Chief of Staff for Installation Management Installation Services Directorate Privatization and Partnerships Division

2 May14 Curt Wexel, PE 2 Assistant Chief of Staff for Installation Management What is Utilities Privatization (UP)? UP transfers ownership and uses a Utility Service Contract to upgrade to industry standards. UP is Army’s preferred re-investment strategy Leverages private funding & skills UP is unlike other privatization initiatives: – Army sells the utility system, but owns the real-estate – After sale, Army is a customer, not a vested partner – 50-yr Utility Service Contracts authorized by 10 USC §2688 UP helps Army, taxpayers, energy, environment

3 May14 Curt Wexel, PE 3 Assistant Chief of Staff for Installation Management

4 May14 Curt Wexel, PE 4 Assistant Chief of Staff for Installation Management 4 The Case for Utilities Privatization (UP) Affordable Risk Insurance  Transfer Liability Risks  Leverage Private Funds Reduced Leaks & Losses  31% less gas use [21 UP sites]  28% less water [23 UP sites]  $57M/yr utility savings  2.3 year simple payback Improved Energy Security 28% life-cycle cost avoidance Full sustainment platform Utility Privatization (UP) leverages industry expertise and financing, where cost- effective, to upgrade utilities for more safe, efficient, and sustainable service.

5 May14 Curt Wexel, PE 5 Assistant Chief of Staff for Installation Management Fort Belvoir: Before & After FY09 UP

6 May14 Curt Wexel, PE 6 Assistant Chief of Staff for Installation Management “Cost Avoidance” 28% Average UP Evaluation Decision Upgrade Current Government UP 50-Year $ Cost UP Central Funds (OMA) Operate & Maintain Reality “Should Cost” Offer OMA Funded ~75% of Req’t Select best option for FULL Sustainment Unfunded Scarce MILCON Funds Repair & Restoration OMA Relatively stable Installation Cost Government is unable to perform as it “should”

7 May14 Curt Wexel, PE 7 Assistant Chief of Staff for Installation Management UP Supports Energy & Environment Fix & Upgrade Infrastructure Reduced leaks & losses Improved Energy & Water Security Helps meet Energy & Water goals UP Compatible with Energy, Safety, Environment Net Zero energy, water, waste Load management (UP Provider can do UESCs) Project initiatives (from Army or UP Provider) Utility Service Contract is separate from commodity – UP can tie-in PPAs, solar arrays, cogeneration …

8 May14 Curt Wexel, PE 8 Assistant Chief of Staff for Installation Management Army UP Program Results  86% of evaluations complete 307 out of 355 U.S. systems evaluated for UP  144 Privatized Systems: 39 Electric, 38 Gas, 31 Water, 33 Wastewater, 3 Heat/Power  $2B (28%) Life-Cycle O&M Projected Cost Avoidance  PLUS benefits of efficient, safe, reliable service… and commodity savings $57M/yr in FY yr payback of award costs

9 May14 Curt Wexel, PE 9 Assistant Chief of Staff for Installation Management 9 Actual Field Efficiency 31% Less Gas 21 UP Sites $46 M/yr cost avoidance FY13 vs FY03 baseline 28% Less Water 23 UP Sites $11 M/yr cost avoidance FY13 vs FY07 baseline Bubbles proportionate to usage Water Gas per Energy Policy Act of 2005 per Executive Order 13423

10 May14 Curt Wexel, PE 10 Assistant Chief of Staff for Installation Management 144 Privatized Utility Systems Aberdeen PG - E, G, W, WW Aberdeen (Edgewood) - G Adelphi Lab - G A.P. Hill - E, W, WW Belvoir - E, G, W, WW Benning - E, G, W, WW Bliss - E, G, W, WW Blue Grass AD - G Bragg - E, W, WW, G Campbell - G, W, WW Detrick - G Detroit Arsenal - G Devens - E, G, W, WW Dix - E, G Eustis - E, G, W, WW Gordon - E, G, W, WW Greely - E, W, WW, P Hawaii - W Hood – W, WW Huachuca – E Hunter AAF - E Irwin - E, W, WW Jackson - W, WW Knox - E, W, WW Leavenworth - E, W, WW Lee - E, W, WW Leonard Wood - E, G Letterkenny AD - W, WW Lewis – G Meade - E, G, W, WW McCoy - E, G McNair - E, G Monmouth - G Monroe - E, W, WW Myer - E, G Natick Lab - E, G Oahu/ Schofield Barracks – WW Ord Community - E, G, W, WW Parks RFTA - E, G, W, WW Picatinny Arsenal - E, G Pickett - E, W Polk – W, WW, E Pres Monterey - E, G, W, WW Red River AD - E, W, WW Redstone Arsenal – WW Richardson - E, G, W, WW, P Rucker - E, G, W, WW Sam Houston - E, G Sierra AD - E, G Sill - G, W, WW Stewart - E Stewart Sub-Post - G Story - E, G, W, WW Sunny Point MOT - E Tooele AD - G Vancouver Barracks - G Wainwright - E, W, WW, P Walter Reed AMC - G Yakima Training Center - G FY14Henderson Hall – E Picatinny Arsenal – W, WW FY15Gillem Enclave – E, G, W, WW Fort Polk – G JB Lewis-McChord – E, W, WW Fort Campbell – E FY16Fort Hood – E, G Oahu – E Fort Riley – E, G, W, WW Fort Jackson – G Aberdeen PG – W, WW USAG W.Point – E, G, W, WW FY17Anniston AD – W, WW Fort Leonard Wood – W, WW Fort Buchannan – E, W, WW Oahu – W TBD: Tobyhanna AD – W, WW Myer/ McNair & ANC – W, WW Pine Bluff ARS – G Redstone ARS – E, G, W Iowa AAP – E, G, W, WW Rivanna Station – E, G, W, WW Arlington Nt’l Cemetery – E Mark Center – WW Arlington Nt’l Cemetery – G The UP schedule gives priority to evaluate deteriorated utility systems (ISR Q3 or Q4) Pending Evaluations Army UP Working Schedule – April 2014 W = water WW = wastewater E = electric G = natural gas P = heat & power


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