Utilities Privatization (UP) Customer Session DLA Energy Worldwide Energy Conference April 10, 2017 Curt Wexel, P.E. UP Program Manager Operations Directorate 1
Overview of Army UP UP leverages industry expertise & financing to upgrade and sustain utilities for safe & efficient mission support. ü28% life-cycle Should-Cost avoidance ($2.1 B Net Present Value) + Affordable Risk Management + Energy Security & Resilience + Reduced Leaks & Losses + Shovel-ready year-end projects 2nd Order Benefits übenefit-to-cost Ratio = 19 to 1 üfull sustainment platform (10 USC 2688: 50-year contract authority) 2
UP Evaluation Decision Selects best option for FULL Sustainment 50-Year $ Cost Unfunded Risks Deficiency Corrections Sustainment O&M ~75% Funded Government Should Cost 28% Avg Cost Avoidance Upgrades Recurring UP Offer + Commodity Savings (OMA) 3
Risk Management Fort Bragg FY13 Gas UP: Army Inventory Actual San Bruno, CA 2010 2933 Services Investigated 366 Total Leaks Detected 92 Grade 1 Leaks 4
Fort Belvoir FY09 UP Installation Status Report Ratings Backlog... threatens Mission, Health, Safety & Environment 5
Army Conveyance Policies 10 USC 2688 conveyance authority delegation: ØAdjusts for condition & risk (Nov 14) ØEnergy Security emphasis & other factors (Apr 16) +15% Risk 0 Deterioration 6
31% less Gas use ( and 69% less oil use ) FY16 Metered UP Results @ 20 Privatized Gas Systems $36 M/yr UP cost avoidance Performance vs FY03 baseline per Energy Policy Act of 2005 26% less Water use @ 22 Water System UP sites $11 M/yr UP cost avoidance Performance vs FY07 baseline per Executive Order 13423 Bubbles are proportionate to usage. Savings are consistent between Fiscal Years & Air Force reports similar results. 7
UP is Affordable Risk Management FY17-19 Options: q $967M MILCON unplanned (ISR repair estimate) q $703M UP Lump-Sum (USMA Parametric Model) þ ~$70M/yr UP Amortized Strategic investments for critical missions üaffordable üresilient üefficient üsafe 8
Utilities Privatization: W= water WW= wastewater E= electric G= natural gas P= heat & power. 153 Privatized Systems UP Decision Schedule ACSIM Memo 17 May 16 Aberdeen PG: E,G,W,WW Aberdeen (Edgewood): G Adelphi Lab: G Arlington Nt l Cemetery: E A.P. Hill: E,W,WW Belvoir: E,G,W,WW Benning: E,G,W,WW Bliss: E,G,W,W 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 Gillem: E,G,W,WW Gordon: E,G,W,WW Greely: E,W,WW,P Hawaii: W Hood: E,G,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 Myer: E,G Natick Lab: E,G Oahu, Schofield Barracks : WW Ord Community: E,G,W,WW Parks W RFTA: E,G,W,WW Picatinny Arsenal: W,WW,E,G Pickett: E,W Polk: W,WW,E Pres Monterey: E,G,W,WW Red River AD: E,W,WW Redstone Arsenal: WW Rucker: E,G,W,WW Sam Houston: E,G Sierra AD: E,G Sill: G,W,WW Stewart: E; G @sub-post Sunny Point MOT: E Tooele AD: G Vancouver Barracks: G Wainwright: E,W,WW,P Walter Reed AMC: G Yakima Training Center: G -17 Joint Base & BRAC Losses: Forts Story & Eustis : E,G,W,WW Monmouth: G Monroe: E,W,WW Richardson: E,G,W,WW,P FY16 Fort Hood: E,G Watervliet Arsenal: G FY17 Fort Campbell: E Blue Grass AD: E Joint-Base (JB) Lewis-McChord: E Fort Riley : E,G,W+WW USAG West Point: E,G Fort Jackson : E,G FY18 JB Lewis-McChord: W+WW USAG West Point: W+WW,P Pine Bluff Arsenal: G Oahu, Schofield Barracks : E Fort Leonard Wood: W+WW Fort Buchannan: E,W+WW Hawaii (PTA & KMC): WW Oahu, Schofield Barracks: W FY19 Anniston AD: W+WW Aberdeen (Edgewood): W+WW Yuma PG: E,W+WW JB Myer,H.Hall & ANC: W+WW Redstone Arsenal: E,G,W Rock Is. Arsenal: E,G,W+WW FY20 Watervliet Arsenal: E,G,W+WW White Sands MR: E,G,W+WW Tobyhanna AD: W+WW Ft McNair & Arlington Cemetery: G Fort Carson: E,G Fort Detrick: E,W+WW FY21 USAG Kwajalein Atoll: E,W+WW,P Dugway PG: E,G,W+WW Fort Carson: W+WW Radford AAP: E,G,W+WW FY22 Fort Drum: E,G Rivanna Station: E,G,W+WW Fort Hamilton: E,G,W+WW Red River AD (RRAD): G,P Tooele Army Depot: E,W+WW,P Fort Hunter-Liggett: W+WW Fort Drum: W+WW FY23 Fort Hunter-Liggett: E,G Mark Center: WW Parks RFTA: E,G Scranton AAP: E,W+WW Iowa AAP: E,G,W+WW 9