MIL-HDBK-1003/7
Source of Power. Each naval activity shall normally be provided with three
2.3
sources of electric power: primary, standby, and emergency. For further information on
power sources, see MIL-HDBK-1004/1, Electrical Engineering Preliminary Design
Considerations.
2.4
Private Versus Government Ownership
2.4.1
Private Ownership. Private or commercial facilities shall be utilized unless
it can be demonstrated that it is necessary, or more economical, for the Government to
perform the services.
Government Ownership. The Government shall operate utility
2.4.2
services only if justified by any of the following factors:
a) A lack of reliable, available private facilities with sufficient
capacity to meet the load demand. First, however, the possibility of inducing private
industry to undertake the operation or to provide the facility must be examined.
b) Substantial savings to the Government resulting from owning and
operating a plant, provided the true cost basis (including all allocable items of
overhead and personnel) is used in evaluating government ownership. For additional
data, see Section 2. Only those costs which would remain unchanged, regardless of
whether the services were owned or purchased, may be neglected.
c) The necessity for meeting current and mobilization requirements at any
emergency, particularly where an abnormal or fluctuating military demand discourages
private investment. This factor shall apply to the essential load only.
d) The need for training military personnel for advanced base or overseas
operations where nonmilitary personnel are not available for the particular work or
service.
e) A demand for complete command control, in order to avoid compromise of
highly classified security information.
f) The necessity for protecting the plant and personnel in areas of
unusually hazardous operations.
g) The need for a complete demilitarization, prior to final disposal, of
certain types of military equipment.
h) Any other items clearly demonstrating a particular Government owned
operation to be in the public interest.
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