Privatization-in-Place and the Impact on the Department of Defense Depots: A Case Study at Newark AFB

Abstract

The purpose of this study is to document the change in organizational structure when military jobs and production are transferred to civilian corporations under privatization in place (PIP). Privatization-in-place is a new concept that is being implemented, at Newark AFB, as a result of base closure and the desire to maintain as many jobs as possible in the local community. In the course of this research, it is shown how the new civilian management structure compares to the existing military structure and functions. The purpose was to provide insight into what changes would occur under private management as opposed to public management. Base closures cause tremendous concern in local communities with their resultant impact to the socioeconomic structure. Privatization-in-place, as shown in this study, will keep jobs and incomes in the local community and therefore be less disruptive then with a normal base closure. In addition, this study shows why PIP is being implemented, initially, at Newark AFB and provides insight into proposed future implementations with recommendations for future projects

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