Privatization and Commercialization of GPS

Aron Pinker and Jim Hasik

Abstract:	The DOD is considering the potential for privatization of various sectors of its activity. It has been estimated that savings from 20 to 27 percent can accrue from privatization; primarily from cuts in personnel. The purpose of this paper is to analyze the concept “privatization” (with respect to GPS), analyze the pros and cons for the privatization of the GPS, and make a recommendation on the future status of the GPS. Our approach is to analyze the meaning and implication of various levels of privatization of GPS. We use the working hypothesis that privatizing a DOD activity would mean availing the government with the standard services or items offered to any customer. Privatizing a DOD enterprise would mean selling it to private owners, or fully disposing of it and its obligations, and becoming a regular customer of this privatized enterprise. The US government has made a substantial investment in the GPS. Naturally, any thought of privatization would have to address the recouping of the investment, of the maintenance costs, or making some substantial contribution towards these costs. Our analysis, therefore, deals with three levels of privatization or ceding of control: complete, partial, and commercialization.. We consider the the advantages and disadvantages for each case.
Published in:	Proceedings of the 9th International Technical Meeting of the Satellite Division of The Institute of Navigation (ION GPS 1996) September 17 - 20, 1996 Kansas City, MO
Pages:	1501 - 1509
Cite this article:	Pinker, Aron, Hasik, Jim, "Privatization and Commercialization of GPS," Proceedings of the 9th International Technical Meeting of the Satellite Division of The Institute of Navigation (ION GPS 1996), Kansas City, MO, September 1996, pp. 1501-1509.
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