Letterhead - DoD Seal DEPUTY SECRETARY OF DEFENSE

1010 DEFENSE PENTAGON
WASHINGTON, DC 20301-1010

Letterhead - DoD 50th Anniversary Commemorative Seal

10 DEC 1997

MEMORANDUM FOR

SECRETARIES OF THE MILITARY DEPARTMENTS
CHAIRMAN OF THE JOINT CHIEFS OF STAFF
UNDER SECRETARIES OF DEFENSE
DIRECTOR, DEFENSE RESEARCH AND ENGINEERING
ASSISTANT SECRETARIES OF DEFENSE
GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE
INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE
DIRECTOR, OPERATIONAL TEST AND EVALUATION
ASSISTANTS TO THE SECRETARY OF DEFENSE
DIRECTOR, ADMINISTRATION AND MANAGEMENT
DIRECTORS OF THE DEFENSE AGENCIES
DIRECTORS OF THE DOD FIELD ACTIVITIES

SUBJECT: Department of Defense Reform Initiative Directive #9 -- Privatizing Utility Systems

     The Military Departments are directed to develop a plan for privatizing all of their utility systems (electric, water, waste water and natural gas) by January 1, 2000, except those needed for unique security reasons or when privatization is uneconomical. This plan shall include organizational requirements for conducting such privatization, and a timetable with internal benchmarks for measuring progress in achieving this goal in the interim years.

     Furthermore, the Under Secretary of Defense for Acquisition & Technology is directed to develop uniform criteria for the Military Departments to apply in determining whether a facility is exempt from privatization due to economic or security considerations.

     The Military Departments shall present their plans to the Defense Management Council no later than March 13, 1998.

/SIGNED/
John J. Hamre