Privatization in the U.S. Navy
Perritt, Stuart E.
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Privatization does save money for the vast majority of functions. The clearest evidence to support this is a Pentagon study of 235 separate privatization competitions between 1980 and 1982. Follow-up studies indicated that competitive contracting saved 22%. A side benefit was that the in-house organizations that won their competitions improved on their precompetition costs by 18%. Public/private ventures can save time over conventional methods of acquisition. This time savings can be as much as several years in some cases. This is clearly the case in facility acquisition for nonoperational functions. They have a low priority in the military construction program in good budget conditions but have an extremely low probability for approval in the current tight budget conditions.
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