Partnering with Private Industry

The Department of the Army’s strategic goal is to continue to grow and expand partnerships between Army depots and industry.




Definition by DUSD(L&MR) Memo dated 30 Jan 02 – “A public-private partnership for depot maintenance is an agreement between an organic depot maintenance activity and one or more private industries or other entities to perform work or utilize facilities and equipment”. 



  • Lowers cost of products and services

  • Sustains critical skills and capabilities

  • Improves operational efficiencies





The first measure of a successful partnership opportunity is evaluating what each prospective partner brings to the table.  In most cases, especially with an original equipment manufacturer, the government and industry each have strengths that when merged form a strong cohesive relationship, resulting in a lower cost of the product or services and an improvement of operational efficiencies.  Additionally, the partnership provides a means to sustain critical skills and capabilities resident within the government and industry.




10 USC § 2474 – Requires the Military Departments to designate depot maintenance activities as Centers of Industrial and Technical Excellence (CITEs), authorizes and encourages public-private partnerships, permits performance of work related to core competencies, permits use of facilities and equipment and permits sales proceeds from public-private partnership to be credited to depot accounts.  Letterkenny Army Depot has CITE designation for Air Defense & Tactical Missile Ground Support Equipment and Mobile Electric Power Generation Equipment.


10 USC § 4544 – Allows Army working capital funded industrial facilities to:  sell any manufactured article or service to non-Army entity; perform work for a non-Army entity; share work with a non-Army facility; enter into a lease or facilities use agreement for facility space or equipment with a non-Army entity; and prepare/submit joint offers with a non-Army entity in competitive procurements solicited by a federal agency.  Authorizes multi-year, firm fixed pricing.  Authorizes a non-Army entity to perform work at an Army facility.  Expires FY14.


10 USC § 2208(j) – Permits depots that are financed through working capital funds, to sell articles and services outside DoD if the purchaser is fulfilling a DoD contract and the contract is awarded pursuant to a public-private competition or doing so would advance the objectives of 10 USC 2474.


10 USC § 4543 -  Army working capital industrial facilities (including arsenals) may sell manufactured articles to, or perform services for persons outside of DoD under certain conditions.


10 USC § 2470 – A Depot level DoD activity shall be eligible to compete for the performance of any depot-level maintenance and repair workload of a Federal agency for which competitive procedures are used to select the entity to perform the workload.


10 USC § 2667 – Allows leasing on non-excess facilities and equipment


10 USC § 2208(h) – Supplies available in inventories financed by working capital funds may be sold to contractors or used in performing contracts with the DoD.


10 USC § 2539b – DoD laboratories and test facilities may sell, rent, lend, or give samples, drawings and manufacturing or other information (subjects to rights of third persons); sell, rent, or lend government equipment or material for use on independent research and development projects; or make available testing services to any persons.




  • Initiate contact with Letterkenny Business Development Office (717-267-5210).

  • Sign a Nondisclosure Agreement (NDA)

  • Provide a Scope of Work (SOW) to Letterkenny Business Development Office

  • Business Development Office will staff SOW and return a ROM based on requirements.

  • Letterkenny Legal Office and Business Development Office begin discussions with Private Entity.

  • Appropriate contractual documents (Memorandum of Agreement, Contracts, etc) are developed and signed by all parties involved.





Dale McClanahan, Chief, Business Development Office


Jessica Irvin, Business Development Specialist


*Contact above at (717) 267-5210