This is a NAVAL POSTGRADUATE SCHOOL MONTEREY CA report procured by the Pentagon and made available for public release. It has been reproduced in the best form available to the Pentagon. It is not spiral-bound, but rather assembled with Velobinding in a soft, white linen cover. The Storming Media report number is A017104. The abstract provided by the Pentagon follows: A constant in today's Department of Defense (DoD) is the push for installations to save money by privatizing and Outsourcing service functions currently performed by Federal Government employees. As an alternative to privatization and Outsourcing, installations are looking increasingly towards cooperative public-public and public-private partnerships to facilitate innovative cost saving initiatives. The success of current DoD partnering initiatives suggests that government's partnering with municipalities to reduce the cost of installation Support services could produce substantial saving. This thesis examined the proposed land lease agreement between the Naval Postgraduate School (NPS) and the City of Monterey as a means to reduce facilities operation and maintenance costs and provide capital improvements to facilities infrastructure at NPS, while also providing additional recreational facilities and maintenance responsibilities at competitive costs for the City of Monterey. The method of analysis included a literature review of business practices and industry publications associated with partnering initiatives, and semi- structured interviews conducted with 23 individuals from three primary stakeholder groups. Findings indicate that NPS and the City of Monterey could benefit from the proposed agreement in terms of cost savings, improved infrastructure, and recreational assets for the City. Implementation difficulties include substantial differences in terms of cost accounting practices, communication and decision-making structures, and corporate cultures.
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