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Criteria for Developing a Successful Privatization Project
AIR WAR COLL MAXWELL AFB AL
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This study sought to develop a set of criteria for privatization project proponents to use in bridging the gap between requirements determination and concept development. The study approach involved analyzing successful projects to determine common factors contributing to their success and developing criteria for use when initiating other privatization projects. Four basic criteria emerged in the study. A project management team approach should be used with a multi-disciplined working group, key leadership involvement, and an up-front commitment of required resources. The project must be beneficial to the government and should be structured so that it provides a savings over the status quo, privatization life-cycle costs equal to or less than the MCP military Construction Program alternative, and greater value than the MCP through benefits that the MCP would not normally provide. The project must be acceptable to the government and should be structured to attain legal and environmental sufficiency, support by the MAJCOM, Air Staff and DOD, community support, support by state and federal agencies outside DOD, and acceptance in Congress by appropriate subcommittees and local US delegations. The project must be structured so as to be attractive to industry by providing a low risk perception and adequate profit.
APPROVED FOR PUBLIC RELEASE