Rapid improvement event invigorates AF Utilities Privatization process Published Dec. 30, 2014 By Eric Grill AFCEC Installations Directorate JOINT BASE SAN ANTONIO - LACKLAND, Texas -- The Air Force Civil Engineer Center held a rapid improvement event recently to codify and identify improvements for the Air Force's Utilities Privatization Program. During the week-long event, held in early November, various agencies involved in the program worked together to map the current process, remove redundancies and create a streamlined process that works for all stakeholders involved. The UP rapid improvement event partnered decision-makers from headquarters Air Force, AFCEC's Installations and Energy Directorates, the Defense Logistics Agency Energy, Air Force legal counsel, as well as major command utilities privatization representatives and installation contracting officer representatives. The Air Force UP program is transforming base infrastructure around the country by privatizing utility systems, which establishes a partnership and direct investment for both the Air Force and utility system providers, said Rick Weston, who leads the AFCEC UP Program Management Office. When the Air Force privatizes utility systems, it conveys the entire system permanently within points of demarcation on the installation to a third party, such as a municipal, private, regional, district or cooperative utility company. The Air Force no longer owns, operates, maintains or repairs these systems. The agreement also includes a utility service contract for operations, maintenance and recapitalization for a specified period of time, not to exceed 50 years, Weston said. At the beginning of the event, AFCEC leadership challenged and encouraged the stakeholders to collaborate and look at the post-award steps in the utilities privatization process. "Now is the time to work through the UP processes," said Joe Sciabica, AFCEC director. "We're here to sustain the lifetime of the utility privatization program. The benefits will pay off for our Air Force and for the men and women in uniform, which is what this is all about." With 66 privatized water, wastewater, electric and natural gas utility systems Air Force-wide valued at $3.6 billion, the UP program is an example of how the Air Force is conserving resources and looking at different ways to effectively apply them to meet an enterprise business need, said Robert Moriarty, director of AFCEC's Installations Directorate. "We have to change in today's business environment; the military has been naive in this realm," Moriarty said. "It's about conserving resources and taking a business approach to utilities privatization and portfolio management. There is engineering involved, but in the end it's business that we're doing here, as it should be." Bringing together key stakeholders "provided an opportunity for identification and proper articulation of problem areas and understanding of UP post-award processes such as portfolio management and post-conveyance reviews," said Debra Harkiewicz, AFCEC's UP portfolio management branch chief. "Challenges and processes that we had been working on over the last nine months were brought to closure in less than five days." As a key partner of the Air Force in the UP program, DLA Energy-Utility Services administers most of the 50-year utility services contracts for the UP program. The potential results of the RIE are seen as essential to the future success of the Air Force's UP program, said Col. James Wilkie, DLA Energy-Utilities Services director. "The RIE provided the opportunity for all stakeholders to have a better understanding of the UP program and dispel the perception that UP is similar to other DOD privatization programs," Wilkie said. "Resolutions from the RIE and action items (identified) on critical post-award issues should mitigate obstacles experienced and improve support for the administration of Air Force UP contracts, which can be quite challenging due to the complex, dynamic, and unique environment at each Installation." Mary Lumsdon, a contracting officer representative, or COR, from Goodfellow Air Force Base, Texas, represented CORs from the installation level to give that perspective to the process. "We were able to get through a lot of the pain points CORs experience regarding the UP process," Lumsdon said. "The new process makes the program more efficient with clear lines of responsibility identified." As an added benefit, Lumsdon said the rapid improvement event was an eye-opening experience for her as she now has a clear view of the entire UP process. "Several years ago when I started as a utilities privatization COR, I had to learn this process the hard way -- on my own," Lumsdon said. "This event turned into a great learning experience for me as I had the opportunity to hear all stakeholders' perspectives and at the same time offer my own to influence the entire utilities privatization process." For more information on the Air Force's Utilities Privatization Program, go to http://www.afcec.af.mil/energy/utilitiesprivatization/index.asp.