Even the most dogmatic libertarian would be hard-pressed to defend the notion of privatizing the fighting navy, but the rest of the navy (training, support, maintenance, etc.) can in some instances be privatized not only without impacting military efficiency, but actually boosting it:
The Royal Maritime Auxiliary Service (RMAS) was privatised and taken over by Serco back in the 1990s and run for profit. To this day, Serco Denholm are responsible for the provision of all manner of auxiliary services, ranging from tugs and tender transfers, through to torpedo recovery craft, exercise minelayers and range target vessels.
All in all, there are easily over 100 vessels which can be found primarily in naval bases, but also in other establishments such as the Kyle of Lochalsh, around the UK. This fleet of vessels is an important reason to be positive for two reasons. Firstly, many navies rely on their own personnel to man and operate these vessels. When they need replacing, these costs are funded from naval budgets, and not from a wider contract fund. Similarly, the manpower needed to operate them comes from the Navy, and not from the private sector, meaning more sailors are needed to do this sort of job, and not go to sea on a ‘proper’ military vessel. By contracting out the service, the RN is able to focus its resources and manpower on proper military vessels, and not have to worry about finding funds to replace elderly tugs, at a time when it wants to bring frigates into service. It is not remotely glamorous, but it is an essential part of operating a Navy, and one that is often forgotten.
Also forgotten is just how new this fleet is — there has been a huge amount of investment in the port services fleet in recent years, with literally dozens of craft (Humphrey read something saying over 80 new vessels were being ordered) being built and entering service. The RN has managed to acquire the services of one of the most modern and effective port support vessels fleets in the world. This would not have happened if the RN were still looking after the RMAS — instead, by privatising it, the funding instead has brought new ships and better capabilities into service, at a reduced cost to the taxpayer. This matters because without it, the RN would be reliant on ever older ships, or finding scarce equipment programme funds to pay for them. (For those interested in the ships in service now, try this link — http://www.rfanostalgia.org/gallery3/index.php/RMAS)