By Ike Y Chang
This document expands at the suggestion of a collaborative learn strategys and discusses the application of public-private partnerships.
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Additional info for Use of Public-private Partnerships to Meet Future Army Needs
This concern can be alleviated by making sure that those making budget decisions are aware of the utility of PPPs and understand how budget decisions affect the realization of that utility. In this respect, regulatory guidance may be appropriate. Alternatively, revenue-generating PPPs can be fashioned so that the Army's return comes in in-kind payments rather than cash payments. This report shows that PPPs can return benefits to the Army that may not be possible with other types of agreements. The Army can use PPPs to optimize the utility of excess capacity infrastructure and its store of intellectual property.
We encourage the Army to exploit the range of opportunities PPPs offer to help it meet its military needs, and we recommend that proposed PPP ideas be examined using the screening method presented in this report. Page xxi Acknowledgments The authors wish to thank Richard Montgomery, RAND consultant, for proposing and developing the equity fund concept; John Stainback, Ernst & Young, for sharing his thoughts on public-private development ventures; James D. ) Vince Russo, for reviewing some of the revenue-generation concepts.
The findings should be of interest to Army audiences addressing strategies for developing advanced technology as well as those concerned with infrastructure assets and installation closures. This research was completed and approved for public release in 1998. Page v Contents Preface iii Figures ix Tables xi Summary xiii Acknowledgments xxi Acronyms xxiii Chapter One Introduction 1 Definition of Public-Private Partnership 2 Benefits of Public-Private Partnerships 2 Leverage Assets, Reduce Costs, or Decrease Outlays 3 Increase Value of Army Assets 4 Create New Army Capabilities and Assets 4 Early Influence on Technology 5 Improve Readiness Posture 5 Generate Revenue 6 Objective and Scope 6 Background 7 Organization 10 Chapter Two The Complementary Contributions In Public-Private Partnerships 11 Army Contributions 11 Private-Sector Contributions 11 Page vi Marketing Expertise 12 Access to Capital 14 Access to Leading-Edge Technology 15 Operating Expertise 16 Chapter Three The Trend Toward Increased Use Of Public-Private Partnerships 19 Legislative Changes 19 Stevenson-Wydler Technology Innovation Act of 1980 20 Grants 20 Technology Transfer Act of 1986 21 Cooperative Agreements 22 Other Transactions 22 Other Transactions for Prototyping 23 Test and Evaluation 24 National Technology Transfer and Advancement Act of 1995 (NTTAA) 25 Proposed Technology Transfer Commercialization Act of 1997 (TTCA) 25 Leases on Non-Excess Property 26 Actions by Organizations Within the Department of Defense 27 Quadrennial Defense Review 27 National Defense Panel 28 Plan for Consolidation of Defense Labs and T&E Centers 29 Defense Science Board Studies 29 Actions By Specific Commands and Agencies 30 Activities at the Local Government Level 30 Setting the Trend 32 Infrastructure PPPs 32 Intellectual Property PPPs 34 Financial Arrangement PPPs 35 Chapter Four A Projected Evaluation Of Public-Private Partnerships 39 Feasibility Criteria 41 Legality 41 Acceptance 43 Page vii Attractiveness to Private Firms 43 Evaluation of Specific Ideas 44 Infrastructure 44 Intellectual Property 46 Financial Arrangements 50 Chapter Five Closing Remarks And Recommendations 55 Appendix A.