GOVERNMENT FINANCE & PRIVATIZATION: DESCRIPTION

Today's federal, state and local governments face a dilemma. Forced to operate in budget-constrained environments, governments must nevertheless maintain and modernize critical infrastructure that is necessary to serve the needs of the people. In many government sectors, this dilemma has been exacerbated by the events of September 11 and the heightened homeland security burdens placed on governments. In this environment, federal, state and local governments have recognized the need to consider alternative financing arrangements in connection with their appropriations and to pursue the privatization and outsourcing of many government functions. The federal government's recognition of this need is evidenced by the Fair Act, under which federal agencies are required to affirmatively assess which federal government functions might be better performed in the private sector.

McKenna Long & Aldridge LLP provides clients with a turnkey solution for pursuing government contracting, finance and privatization opportunities in this rapidly growing and changing market segment. Whether you are private sector company seeking to do business with the government or a lender interested in providing financing in connection with such a transaction, McKenna Long & Aldridge's expertise in the areas of government contracting, finance, and privatization will provide you with the necessary platform to compete in this growing market segment. McKenna Long & Aldridge lawyers have expertise in all areas of government contracting, finance, and privatization, including:

• Traditional government purchasing and appropriations, including total system development and production.
• Government contract finance.
• "Life cycle contracting," in which the contractor is obligated to provide maintenance and field support of a system.
• "Turnkey project contracting," in which the contractor is obligated to maintain, support, and operate the system.
• Government lease financing, in which government agencies enter into long-term leases of assets as an alternative to the typical government appropriations model.
• "Wet leasing," involving the leasing of equipment with additional obligations to maintain and/or operate the equipment.
• "Facilitization," in which the leasing party is obligated to design and construct the facility to house leased equipment.
• Privatization of existing governmental plants and facilities, including utility, housing, and similar systems.
• Outsourcing of government services.

McKenna Long & Aldridge has experience in transactions at all levels of government (federal, state and local) and in a variety of industries, and has represented both governmental entities and private sector clients. For example, our lawyers have represented clients in the following types of transactions:

• Represented aircraft manufacturer in connection with government proposal to lease fleet of refueling aircraft.
• Represented manufacturer of decontamination equipment in sale to government of decontamination equipment and "facilitization" of project.
• Represented private entity in connection with privatization of housing functions housed on military base.
• Represented private contractor in connection with financing, construction and operation of co-generation facility on military base.
• Represented private contractor in financing foreign military sale contract for sophisticated aircraft.
• Represented major metropolitan city in connection with privatization of its water treatment system.
• Represented metropolitan county in efforts to privatize its wastewater plants.
• Represented major metropolitan city in negotiations to build a major league baseball stadium with both government and private finance.

For more information, please contact Sandy Hoe.