Department of Defense "Pipeline" Sales

Defense Reutilization and Marketing Service

Performance-Based Contracting

Program Financial Advisor (“PFA”).  KGP has a long-standing and highly productive relationship with the Defense Reutilization and Marketing Service within the U.S. Department of Defense.  As the Financial Advisor to DRMS, KGP has designed and implemented:

(1)  “Commercial Venture I”: A five-year “pipeline” joint venture portfolio transaction to privatize the sale of approximately $2 billion book value per year of surplus DoD industrial assets including machine tools, construction equipment, electrical products, materials and supplies, and other industrial products;

(2)  “Commercial Venture II”:  A seven-year “pipeline” joint venture portfolio transaction to privatize the sale of approximately $4 billion book value per year of DoD surplus commercial assets including vehicles, aircraft parts, textiles, office furniture and other products; and,  

(3) “Scrap Venture”:  A seven-year “pipeline” joint venture portfolio transaction to privatize the sale of all DoD ferrous, non-ferrous and non-metallic marketable “scrap” materials in the U.S.

Each of these transactions closed successfully and continues to perform exceptionally well as the preferred method to liquidate government assets and provide high returns to the Government.