Utilities Privatization A Path to DoD Energy Resilience! Army Utilities Privatization Program Curt Wexel, P.E. UP Program Manager, Army HQ (DAIM ODF) 10 August, 2016 Rhode Island Convention Center Providence, Rhode Island
Overview of Army Utilities Privatization (UP) UP leverages industry expertise & financing to upgrade and sustain utilities for safe & efficient mission support. 151 Privatized U.S. Systems (43%): 41 Electric, 39 Gas, 33 Water, 35 Wastewater, 3 Heat/Power Manage $20B in Utilities Services Contracts 28% life-cycle Should-Cost avoidance ($2.1 B Net Present Value) + Energy Security & Resilience 2nd Order + Reduced Leaks & Losses Benefits + Shovel-ready year-end projects Benefit-to-Cost Ratio = 14.4 Affordable Risk Management Full sustainment platform (50-year contract authority)
UP Evaluation Decision Selects best option for FULL Sustainment 50 Year $ Cost Unfunded OMA ~75% of Req t MILCON Upgrades Renewals & Replacements Operate & Maintain 28% Cost Avoidance UP Central Funds (OMA) OMA + Commodity Savings Current Government UP Reality Should Cost Offer
Metered Field Efficiency 31% less Gas use ( + 81% less oil use ) @ 21 Gas System UP sites $46 M/yr cost avoidance Performance vs FY03 baseline per Energy Policy Act of 2005 25% less Water use @ 23 Water System UP sites $11 M/yr 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.
Backlog... threatens Mission, Safety & Environment
Army Conveyance Policies Acquisition & Execution 2688 conveyance where appropriate: Adjust for condition & risk (Nov 14) Adjust for Energy Security (Apr 16) Conveyance Authority +15% Risk 0 Deterioration
Energy Security: Ready & Resilient Electro- Mechanical Digital $353M in UP Projects since FY06
Utilities Privatization: W= water WW= wastewater E= electric G= natural gas P= heat & power. 151 Privatized Systems UP Decision Schedule as of 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,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 Gillem: 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: 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 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; G @sub-post 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 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 Assistant Chief of Staff for Installation Management