To date, however, less than 1,000 units are under construction because we cannot find private sector concerns that want to take on this business. We tried to reach out to the real estate community through our part-time Guard and Reserve officers who are housing developers. We did in fact find one nationwide concern that was willing to invest the time and money required to understand our needs and regulatory constraints and work with us to put a large number of units on a fast track. So, now, we are back to square one again. I fear we will be facing similar problems in our ongoing effort to sell our utility systems.
Most states grant regulated monopoly status to utility companies.
When we have tried to sell to the regulated monopoly, we have faced bid protests and the threat of litigation for not competing the work. Legally, federal law allowing competition takes precedence over state law allowing monopolies. I hope these examples give you some idea of how we are trying to implement sound practices into Air Force operations. At the risk of stopping on a down note, let me again assert that in many ways, large and small, we are making progress. And let me assure you that we will continue to look for every opportunity to rationalize the way we do business.