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Privatization A Systems Perspective

Privatization of the US Government began in 1987 when President Reagan signed Executive Order 12607. This resulted in the report, Privatization Toward More Effective Government. This set the tone and policy in the US that still exists today.

Previously the tone and policy of the US was set when President Roosevelt requested a report from the Office of Scientific Research and Development on what can be done after the war. This resulted in the report Science the Endless Frontier.

There is now evidence suggesting that privatization has led to systemic government shutdowns and other negative unintended consequences including serious damage to the industrial base, colleges, universities, and the citizens of the United States.

This book provides history, examines the industrial base, higher education, air transportation, the FAA, and other areas. It offers a systems perspective, compares pre and post privatization times, and makes recommendations for moving forward in this new century.

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Preface

In 2008 I was requested to support universities to help bring back systems thinking and systems engineering as practiced in our industrial base and government from approximately 1945 to 1995. This led me to write two university textbooks on systems engineering, develop course material, teach, and help to establish and shape the direction of university systems engineering curriculum and master's degrees.

Many times, I was asked if this knowledge should be offered outside traditional engineering programs. Each time my response was no because I wanted roots to be established within the engineering education programs. I now realize that systems knowledge needs to be embedded in all forms of education at all levels.

I grew up in a very different world where systems knowledge and thinking were a way of life. It was everywhere. I first learned about it in elementary school when we were taught that we had a system of government, how the system was structured, how it operated, and why we had this system of government.

Just like systems thinking, knowledge, and engineering has disappeared in most companies and government, it has also disappeared from our social fabric. This has resulted in many negative consequences as we struggle to figure out what is happening and how to correct course for a better future.

My previous books were about teaching systems engineering, systems design and systems thinking. This book is about applying this very powerful approach to understanding and solving problems associated with the fundamental system change that is Privatization.

This book provides some privatization history, offers a system view of the situation, identifies unintended consequences, makes comparisons between pre and post privatization time frames, and offers recommendations for moving forward in this new century. The book is divided into multiple sections:

I considered adding significant content from my previous textbooks to try and offer insight into systems thinking, design, and engineering but I realized the key message in this book would be lost. I encourage readers to seek out my textbooks if they are interested in systems. There is a systems perspectives section that some may view as large, but it is small compared to the full knowledge base.

This book started as standalone papers beginning in 2017 on the effects of privatization. They were offered to colleagues, anyone that was interested, and to elected representatives.

Why did I decide to write this book?

I attended a faculty meeting in 2019 where the topic of discussion was declining undergraduate and graduate education enrollments across the country. They had the data trends and understood the cyclic demographics but there was bewilderment because of the sharp declines. I could see that they were all educators and that they did not understand how our society could be walking away from education especially when we had become such a technologically complex society. As the discussion proceeded, I realized that I stumbled across key data while working on a paper on the unintended consequences of government shutdowns.

A few days after the faculty meeting, I added this key data to an existing paper and passed it to the University. This eventually went to the University government liaison group. It had a huge impact because they were unaware of this data. They were operating at a much higher level when interacting with other universities, companies, and the government. They were thankful for the data and the associated analysis. It was at that point that I decided to capture the work on privatization in this book.

My areas of study are systems engineering and systems application to complex technical and social challenges. I hope that you consider following the same studies.

This book like all my other books could use a great editor. It is filled with bad grammar, bad spelling, poor sentence structure, and just hard to read. All I can say is if you make it through this book you may enjoy the adventure. It may help add some positive value to your adventures. It may even help policy makers moving forward to make more informed decisions.

Enjoy the rest of the book.

Our focus is on privatization from a systems perspective.


Instructor Information

Systems thinking and engineering has traditionally been offered to engineering students. However with the serious challenges in this new century there is a realization that systems knowledge needs to be embedded in all forms of education at all levels. There is a need to apply systems thinking and engineering especially in the areas of major policy decisions in and out of industry. Government privatization can be used as an example throughout your course.

Perspective Students: all students, engineering, government administration, political scientists, historians, teachers, pre law, pre med, liberal arts, science, etc.

Textbook: Privatization A Systems Perspective, Walter Sobkiw, 2020.

The table of contents below shows the detailed topics for instructor planning.

Table of Contents

1 Introduction
2 Privatization Recent History
2.1 Executive Orders
2.2 President's Commission on Privatization
2.3 Science the Endless Frontier
2.4 Privatization Source

3 Industrial Base
3.1 How Did This Happen
3.2 Architecture Analysis
3.3 Available Systems
3.4 Recommendations for the Short Term
3.5 Recommendations for Privatization Transformation

4 Universities and Colleges
4.1 How Did This Happen
4.2 Architecture Analysis
4.3 PLATO
4.4 Recommendations for the Short Term
4.5 Recommendations for Privatization Transformation

5 Air Transportation
5.1 Recent User Experience
5.2 Cities without Air Transportation Services
5.3 How Did We Get Here
5.4 Disaster in the Making
5.5 Unintended System Consequences
5.6 Railroads and Airlines
5.7 System Observations
5.8 System Recommendations
5.9 Legislation Recommendations

6 Federal Aviation Administration
6.1 Introduction
6.2 Stakeholders
6.3 System Architecture Alternatives
6.4 FAA Privatization Considerations
6.5 B737 MAX Disaster
6.6 It's Not Just The FAA
6.7 FAA Budget And Economic Impact
6.8 FAA Privatization Observations
6.9 Reality Check
6.10 Recommendations

7 Privatized Workers
7.1 Systems Perspective
7.2 Privatization Effects during Government Shutdowns
7.3 Legislation
7.4 Litigation
7.5 Privatized Worker Unions
7.6 How Did This Happen
7.7 Recommendations for The Short Term
7.8 Recommendations for the Future

8 Federal Government
8.1 Federal Budget
8.2 Government Shutdowns
8.3 Federal Government Architecture Change
8.4 DOD and Defense Companies
8.5 Presidential Impeachment and Ukraine
8.6 Privatized Security Clearances
8.7 How Did This Happen
8.8 Observations
8.9 Recommendations

9 Systems Perspectives
9.1 Systems Approach
9.2 Fundamentals
9.2.1 Good and Bad Systems
9.2.2 Momentum
9.2.3 Hysteresis
9.2.4 Peak Load and Burnout
9.2.5 Timing and Sizing
9.2.6 Cause and Effect and Balance of Power
9.2.7 Key Requirements Specifications and Traceability
9.2.8 Creativity and Innovation Process
9.2.9 Maslow's Hierarchy of Needs
9.2.10 Ethics

9.3 Organizational Capabilities

9.4 Stakeholders and Needs
9.4.1 Possible Stakeholders
9.4.2 Divergent Stakeholders
9.4.3 Needs Analysis
9.4.4 Nonmarket Social Needs

9.5 System Boundary

9.6 Functions Performance and Subsystems
9.6.1 Functional Decomposition
9.6.2 Allocations
9.6.3 Balance and Performance Levels
9.6.4 Performance Allocation
9.6.5 Performance Critical Functions and Requirements

9.7 System Architecture
9.8 Architecture and Value Systems
9.9 Mental Models and Validation
9.10 System Implementation
9.11 Previous Century Systems
9.12 Misuse of Technology

9.13 Sustainability and Progress
9.13.1 Progress
9.13.2 Growth
9.13.3 Space Program
9.13.4 Internal versus External System Sustainability
9.13.5 Sustainability Push Versus Pull
9.13.6 Moving Forward
9.13.7 Going Backward
9.13.8 Approaches from Our Civilization
9.13.9 Sustainability Practitioners

9.14 Large Complex Systems
9.14.1 Mission Critical Systems
9.14.2 Technology Readiness Levels
9.14.3 Safety
9.14.4 Security
9.14.5 Fault Tolerance and Fail-Safe

9.14.6 Human Factors
9.14.6.1 Human Factors Basics
9.14.6.2 Vision and Displays
9.14.6.3 Hearing and Audio
9.14.6.4 Video and Audio Compression
9.14.6.5 Voice and Phraseology
9.14.6.6 Touch and Tactile Feedback
9.14.6.7 Ergonomics
9.14.6.8 Feedback
9.14.6.9 Response Time
9.14.6.10 Vision Versus Sound
9.14.6.11 Visual and Audio Noise
9.14.6.12 Sensory Cognitive Data Information Overload
9.14.6.13 Protecting Humans from Themselves
9.14.6.14 Circadian Sleep Rest Cycles
9.14.6.15 Stress Sources
9.14.6.16 Ethics in Human Factors

9.14.7 Tests, Verifications and Validations
9.14.8 Quality
9.14.9 Certification
9.14.10 Non-Deterministic and Artificial Intelligence Systems

9.15 System Design Theory Philosophies and Art
9.16 Social Architecture Observations
9.17 Systems Perspective Comments

10 Supporting Information
10.1 Government Policy 1987 to Present
10.1.1 EO-12607 President's Commission on Privatization
10.1.2 Report of the President's Commission on Privatization
10.1.3 EO-12803 Infrastructure Privatization
10.1.4 Federal Activities Inventory Reform Act of 1998
10.1.5 Circular A-76 Performance of Commercial Activities
10.1.6 The Trap What Happened to Our Dream of Freedom

10.2 Government Policy 1945 - 1981
10.2.1 Science the Endless Frontier
10.2.2 Social Gospel Movement and President Johnson

10.3 FAA NAS Plan 1989
10.4 FAA Taxpayer Investment

10.5 FAA History
10.5.1 SAGE History
10.5.2 Replacing the Manual System
10.5.2.1 Project Beacon
10.5.2.2 NAS Stage A and Project Beacon Evolution
10.5.2.3 Advanced Automation System and NAS Stage A Evolution
10.5.3 ADIZ
10.5.4 Hijack and Terrorists
10.5.5 Super Sonic Transport (SST)
10.5.6 Startup Shutdown
10.5.7 Advanced Automation System

10.6 B737 MAX JATR Findings
10.7 Jet Airliners

10.8 Government Constitutions
10.8.1 Declaration of Independence
10.8.2 Constitution and Amendments

10.9 Presidential Impeachment
10.9.1 Impeachment Inquiry Report
10.9.2 H.R.755 Articles of Impeachment
10.9.3 Doomsday Clock

11 Privatization System Conclusions
11.1 Systems Perspectives
11.2 The Big Picture System
11.3 Recommendations
11.4 Conclusion

Bibliography
Index

Figures

Figure 1 US Government Functional Block Diagram
Figure 2 US Government Physical Architecture
Figure 3 Generic Architecture - US Government as a System
Figure 4 Government and Company Key Subsystems
Figure 5 Government and Company Model Missing Human Resources
Figure 6 PLATO Bock Diagram 1960
Figure 7 First PLATO Demonstration
Figure 8 Air Travel Transportation circa 1943
Figure 9 Air Traffic Control - ATC circa 1935
Figure 10 System Architecture Transition State 1 (1926 - 1938)
Figure 11 System Architecture Transition State 2 (1940 - 1958)
Figure 12 System Architecture Transition State 3 (1966 - 1981 - present)
Figure 13 Ideal Air Transportation System Convergence
Figure 14 Ideal Air Transportation System Loss
Figure 15 Air Transportation System Failure Scenarios Over Time
Figure 16 Mobile Lounge circa 1958
Figure 17 Pre-Privatization System Architecture
Figure 18 Post Privatization System Architecture
Figure 19 Early Bird - First Communications Satellite
Figure 20 Intelsat IV Communication satellite
Figure 21 Pre-Privatization Political Appointees Impact
Figure 22 Post Privatization Political Appointees Impact
Figure 23 Ideal System Convergence
Figure 24 Ideal System Loss
Figure 25 Organizational Failure Scenarios - Effectiveness over Time
Figure 26 Cause and Effect
Figure 27 Causal Relationships
Figure 28 Causal Relationship State Change
Figure 29 Document Tree
Figure 30 Creativity Innovation Event
Figure 31 Creativity Innovation Iteration
Figure 32 Creativity and Innovation Process
Figure 33 Less Obvious Stakeholders
Figure 34 Precisely Defined Stakeholders
Figure 35 Groups and Benefiting Stakeholders
Figure 36 Social and Market Needs in a Democracy
Figure 37 Generic Context Diagram
Figure 38 Context Diagram - Vacation House
Figure 39 Context Diagram - My House
Figure 40 Context Diagram - My House in the Community
Figure 41 Satellite System Concept Diagram
Figure 42 Functional Block Diagram Level 1
Figure 43 Functional Decomposition Level 2
Figure 44 Decomposition and Allocations
Figure 45 Functional Allocations
Figure 46 Functions Allocated to Physical Elements Become Subsystems
Figure 47 Unbalanced Architecture
Figure 48 Balanced Outstanding Physical Architecture Design
Figure 49 End to End System Performance Degradation
Figure 50 Breakthrough Outstanding Design Performance
Figure 51 System Architecture Development
Figure 52 System Architecture Abstraction Levels
Figure 53 System Architecture Development Sources
Figure 54 Supply and Demand Graphs
Figure 55 Offerings and Demand
Figure 56 Sustainable Architecture Depiction - Sankey Diagram
Figure 57 Centralized Architecture
Figure 58 Fully Distributed Architecture
Figure 59 Model Verification and Validation
Figure 60 Implementation Architecture Design and Industrial Base
Figure 61 Needs of the Highway Systems 1955-1984
Figure 62 Hughes NASA Surveyor Lunar Lander
Figure 63 Hughes Syncom 2 First Geosynchronous Satellite
Figure 64 Hughes Galileo Spacecraft
Figure 65 JPL Viking Lander and Mars Landscape
Figure 66 TRW Pioneer 10 Probe and Plaque
Figure 67 Voyager Space Probe
Figure 68 Space Shuttle
Figure 69 Earth Rising Seen from Moon and Neil Armstrong on Moon
Figure 70 Technology and Sustainability - Sankey Diagram
Figure 71 Sustainable Community
Figure 72 Infrastructure Manufacturing Services
Figure 73 From Necessities to Luxuries
Figure 74 Security Perimeter
Figure 75 Human Eye Cone Cell Response Curves
Figure 76 Rod Cone Distribution and Field of View
Figure 77 Field of View Eye Rotation
Figure 78 Field of View Head Rotation
Figure 79 Field of View Eye and Head Rotation
Figure 80 Color and Focal Length
Figure 81 Prism and Light Bending
Figure 82 Line of Sight
Figure 83 Human Information Processing System
Figure 84 Work Shifts - Daily Time Allocation Alternatives
Figure 85 Designers and Medium
Figure 86 Socratic Discourse Alternatives
Figure 87 Action Centric Model
Figure 88 Linear Thinking
Figure 89 Nonlinear Thinking
Figure 90 Linear Thinking Complex Problem
Figure 91 Nonlinear Thinking Complex Problem
Figure 92 System Transfer Function with Feedback
Figure 93 Potential System Outputs
Figure 94 Single Input Single Output System
Figure 95 Multiple Input Multiple Output Complex Systems
Figure 96 System Development as a System
Figure 97 System Solution
Figure 98 Mitigating Negative Emergence
Figure 99 System Evolution
Figure 100 Architecture Validation
Figure 101 Prototype Validation
Figure 102 System Validation
Figure 103 Potential SEMP Diagram
Figure 104 AERA I
Figure 105 AERA II
Figure 106 AERA III
Figure 107 The Big Picture System

Tables

Table 1 Institution Types
Table 2 Cost Categories
Table 3 Model of Government Services 1987 vs 2019
Table 4 Privatization Industrial Base Damage Unexpected Consequence
Table 5 Systems Established 1900 to 1945
Table 6 Systems Established 1945 to 1987
Table 7 Systems Established 1987 to 2019
Table 8 Systems Lost after Privatization
Table 9 Human Resources Functions
Table 10 University Impact
Table 11 Leading Population Centers
Table 12 Airline Financial Data
Table 13 Airline Mergers circa 1987 and 1989
Table 14 Major Airlines 1989 and 2019
Table 15 Aggregate Airline Financial Data ($ millions)
Table 16 Air Versus Car Transportation
Table 17 USA Population Growth
Table 18 Air Travel Transportation System Metrics for the 21st Century
Table 19 Architecture Traditional Tradeoff Criteria
Table 20 Architecture Sustainability Tradeoff Criteria
Table 21 FAA Budget
Table 22 FAA R&D versus DOD R&D Budget
Table 23 Shutdown History
Table 24 US Government Shutdown Trend
Table 25 Defense Consolidation
Table 26 Ukraine Memorandum on Security Assurances
Table 27 Requirement Traceability Matrix (RTM)
Table 28 Parent Child Report
Table 29 Child Parent Report
Table 30 Maslow's Hierarchy of Needs and Democracy Stability
Table 31 Generic List of Stakeholders
Table 32 Internal Sustainability and Maturity Levels
Table 33 Our Progress to Date
Table 34 Technology Readiness Levels - NASA
Table 35 Software Control Categories - Historical
Table 36 Software Control Categories - Latest
Table 37 Security Threat Assessment Levels
Table 38 Penetration Analysis Criteria
Table 39 Eye Cone Cells and Color Ranges
Table 40 Caffeine Levels
Table 41 Classifying Defects During Testing
Table 42 Classifying Defects For Quality Control
Table 43 Socratic Method General Questions
Table 44 System Management Tools
Table 45 What Applies to All Systems
Table 46 Social Architecture Types and Characteristics
Table 47 Aircraft Currently in Production (2019)
Table 48 Out of Production (2019)
Table 49 Historical Aircraft (2019)
Table 50 Regional Airliners
Table 51 Egregiously Ignored System Perspectives
Table 52 Privatization Most Ignored Systems Perspectives
Table 53 Pre and Post Privatization System Outcomes

Systems Perspectives Privatization Observations

Observation 1 Momentum
Observation 2 Hysteresis
Observation 3 Cause and Effect and Balance of Power
Observation 4 Key Requirements and Specifications
Observation 5 Maslow's Hierarchy of Needs
Observation 6 Ethics
Observation 7 Organizational Capabilities
Observation 8 Divergent Stakeholder Needs
Observation 9 Nonmarket Social Needs
Observation 10 System Boundary
Observation 11 Functions Performance and Subsystems
Observation 12 Architecture Drawings
Observation 13 Architecture Tradeoff Criteria
Observation 14 Previous Century Systems
Observation 15 Misuse of Technology
Observation 16 Sustainability and Progress
Observation 17 Large Complex Systems
Observation 18 Human Factors
Observation 19 Non-Deterministic and Artificial Intelligence Systems
Observation 20 Critical Thinking
Observation 21 Scientific Method
Observation 22 Systems Theory Thoughts
Observation 23 Social Architecture Observations