Privatization of Army Lodging

Abstract : One of the key issues and platforms that President Bush utilized during first election campaign was that the United States Government needs to operate in a more business-like manner. Key to moving this campaign promise forward and implementing reforms to improve the performance of government he issued the President's Management Agenda (PMA). One of the key components of the PMA is competitive sourcing. This includes contracting out services and privatizing operations when the private sector can provide the services in an efficient and effective manner at a reduced cost to the tax payer. One of the most visible program initiatives in the PMA is the Privatization of Military Housing. The Department of Defense (DoD) has been at the forefront of contracting out various non-core competencies long before the PMA was published. The Privatization of Military Housing has been deemed a success and the Army is now in the process of Privatizing Army Lodging. This project will examine if privatizing Army Lodging fits the criteria of the PMA and is the most cost effective operating approach. It also will develop the key issues surrounding this initiative and explore other courses of action that may achieve greater efficiencies than privatization.