In this case, the General is not referring to the incarceration industry but to the municipal water supply and waste collection and treatment industry.
This week's edition of The Wall Street Journal Report [Check your local listings for day and time. I happen to know that in the South Florida TV market (Dade & Broward Counties), for example, it airs on Sundays @ 11:30 a.m. EDT on Channel 10] had a segment covering the growing number of municipalities and water districts that have turned over the operation of that sector of municipal services to private operators and have, apparently, derived considerable benefits thereby.
While several cities were mentioned as having done this and several others were mentioned as considering doing this, two were highlighted, Jersey City, NJ, and Atlanta, GA. It was mentioned that (as I recall) there has been a 50% increase in the number of municipalities/districts turning to privatization for such services in the last 2 years and the numbers of them are expected to increase by another 35% in the next 2 years.
The General's purpose in mentioning this here is not to hype or tout private company's in the water supply managemnt industry, but rather to bring this to the attention of lurkers here because in viewing it, the issues presented were very similar to discussions on this thread re: "government versus private" providers.