Public-Public; Public-Private (P4) Partnerships “Leveraging military installation and local government capabilities and resources to reduce operating and service costs” Mr Steven Zander SAF/IEI 8 Aug 12

Vision Public-public and public-private (P4) partnerships offer a means to leverage the capabilities and resources of military installations, local government or commercial entities to reduce operating costs and the cost of services while retaining quality Basic theory: Other things being equal, overhead in total and per unit of work can be reduced and labor can be used more efficiently (reducing direct cost per unit of output) through the creation of a single entity that completes both sets of work—that of the installation and that of the local government.

Base of the Future (P4) Case Studies Army-Navy relationship @ Presidio with Monterey County, CA was born out of what started as demonstration language in the 1994 Defense Authorization Bill “…fire-fighting, security-guard, police, public works utility or other municipal services needed for operation of any DoD asset in Monterey County,

Base of the Future (P4) Case Studies 2005 Authorization: Army pilot program for two installations (Ft. Huachuca, Ft. Gordon) to procure one or more municipal services: Refuse collection, refuse disposal, library services, recreation services, facility maintenance and repair, utilities City provides water & waste water services--Fort Gordon estimates $7.4M savings in capital upgrade costs and cost avoidance and $47.5K annual commodity cost savings Fort Huachuca estimates $300K annual savings by using city library services. 2012 ANG leading TTXs for Klamath Falls,OR Ellington Field, TX and Fairchild AFB, WA

P4 Task Force Considerations “Each Installation is Unique” Vision What are we endeavoring to do? Why? Education Military and Public Costs –what does it cost now? Value? Audit – Concept Validations – procedure correctness Catalog of ‘Friction’ Authorities? Catalysts? Incentives? Inhibitors? Expectation management How much is “good enough”? Legislation could set the basis of AF Policy

(P4) Task Force Products Create a toolbox What authorities exist? New legislation required? What are candidate partnership opportunities? Define a AF-wide Process and Framework Eventually Policy & Guidance Conduct Table Top Exercises Have been utilized by the Army and ANG Work with MAJCOMs to identify possible candidates? Prepare A Roadmap Brief the SB-ESG; then SecAF/CSAF Institute P-4 Program AF-Wide

Questions?