WASHINGTON NAVY YARD – Defense Logistics Agency (DLA) Energy, in coordination with Naval Facilities Engineering Systems Command (NAVFAC) Washington and NAVFAC Atlantic, awarded a $348,993,609 fixed-price with economic-price-adjustment contract to American States Utility Services (ASUS) Inc., San Dimas, California, to privatize the water and wastewater utility system over a 50-year term at Naval Air Station (NAS) Patuxent River, Maryland, on August 15.
NAS Patuxent River’s water and wastewater system privatization is one in a series of utilities privatization (UP) projects between NAVFAC and DLA Energy. The UP program’s purpose is to review Navy Installations deemed economically not viable in the early 2000s and determine if today’s market offers better opportunities.
“DLA Energy Utility Services supports Military Service partners by offering specialized contracting and technical expertise to obtain safe, reliable, and environmentally sound utility systems, at a relatively lower cost than they would under continued government ownership,” said Martha Gray, Director of DLA Energy Utility Services. “We offer cradle-to-grave contracting support including full range of pre- and post-award contract administration for the 50-year contract term.”
A private system owner, such as ASUS, can respond to changes in technology with greater ease and utilize purchasing power to garner better systems at a reduced cost. This utilities privatization contract represents a significant cost savings for the government in lieu of traditional funding options such as Military Construction (MILCON)e including approximately $100 million in repair and replacement investments of water and wastewater infrastructure at NAS Patuxent River.
"Very simply, this is an extremely significant contract award for the DoD, and another example of the Navy embracing smart solutions like the UP Program to meet crucial infrastructure obligations," said Rear Adm. Lore Aguayo, commander, NAVFAC Atlantic.
The utilities privatization contract addresses cybersecurity requirements and improves control features, while providing the flexibility necessary to refine and enhance future cybersecurity measures. The service provider is contractually required to comply with National Institute of Standards and Technology criteria and protect controlled unclassified information.
“This partnership will enable the Navy to improve both the reliability and resilience of our critical water infrastructure at PAX River, a key aviation base that is critical to the Department of the Navy,” said Capt. Omarr Tobias, NAVFAC Washington commanding officer.
Located approximately 90 miles from the Fleet in Norfolk, Virginia, and 65 miles south of Washington D.C., NAS Patuxent River consists of 14,500 acres spanning the main station in Lexington Park, Webster Outlying Field in St. Inigoes, Navy Recreation Center Solomons in Calvert County, and Bloodsworth Island Range in the Chesapeake Bay.
Since its commissioning April 1, 1943, NAS Patuxent River has evolved into the Center of Excellence for Naval Aviation. NAS Patuxent River hosts Naval Air Systems Command and Naval Air Warfare Center Aircraft Division headquarters, Naval Supply Systems Command Fleet Logistics Center, as well as dozens of additional tenant activities.
“I am excited this project has been awarded on time and with a life-cycle cost below what we thought it should cost, which represents a wonderful win-win opportunity for the Navy and our contractor partner,” said Pete Lynch, NAVFAC assistant commander for public works.
NAVFAC is the Systems Command that delivers and maintains quality, sustainable facilities, acquires and manages capabilities for the Navy's expeditionary combat forces, provides contingency engineering response, and enables energy security and environmental stewardship. NAVFAC Washington directly supports Joint Task Force National Capital Region and its partnership with all local, state, and federal agencies in the region.