Water Contract Operations: Federal Utility Privatization

Federal Partnership. A private partner enters into a long-term service contract with a federal partner to operate, maintain and renew water and wastewater systems (including treatment plants), optimize facility performance, and generally improve utility systems for federal installations.

Federal Case Studies

Jacobs: Fort Campbell, Kentucky

Jacobs manages the water and wastewater utility systems at FortCampbell under a 50-year Utilities Privatization contract with the Army. The parties initiated the contract in 2003 as part of the Defense Reform Initiative Directive (DRID). The 1998 DRID mandates privatization of utility systems at military installations so that their commanders and administrators can focus on their primary mission of national defense. Fort Campbell is home to the U.S. Army’s historic 101st Airborne Division and Fort Campbell’s utility systems serve up to 42,000 residents daily.

A 36-member Jacobs staff operates a 4 million gallons per day wastewater treatment plant, 182 miles of sewer collection systems, 111 lift stations, a 7.6 million gallons per day water treatment plant, 262 miles of water distribution lines and service lines for more than 3,000 buildings. Jacobs supports its on-site staff through a network ofresources that ensure training, facility optimization, technical analysis, and general management.

Under a 50-year contract, Jacobs operates and makes capital improvements to the Fort Campbell utility systems and all facilities, furnishing the staff, expertise, tools and materials needed to deliver reliable utility operations for clean water and public health. Jacobs has completed more than $114 million in system improvements at Fort Campbell.

Jacobs Water Treatment

PRIVATE PARTNER RESPONSIBILITIES

  • Operating and maintaining the system
  • Renewing and replacing existing water and wastewater assets
  • Constructing new assets for base expansion or change or use with existing facilities
  • Regulatory compliance and reporting
  • Permitting for any new or upgraded facilities
  • Recruiting and staffing

BENEFITS

  • Transfer compliance and performance risk to private-sector partner
  • Access to advanced tools, technologies and practices
  • Broader career opportunities for staff
  • Integrated capital improvement program
  • Allows Fort Campbell staff to focus on their core mission

DETAILS

  • Population Served: 42,000 residents
  • Facility: Water and wastewater treatment facility
  • Flow: 4 million gallons per day (wastewater treatment plant) 7.6 million gallons per day (water treatment plant)
  • Other: 262 miles of water distribution lines and service lines for more than 3,000 buildings

American States: Fort Bragg, North Carolina

American States Utility Services, Inc., a subsidiary of American StatesWater Company, provides water and wastewater services to Fort Bragg,which is located in Fayetteville, North Carolina. Fort Bragg is the home to the U.S. Army’s airborne and special operations forces and is one ofthe largest military installations in the world. Pursuant to a 50-year contract, a subsidiary of American States, Old North Utility Services, Inc., has owned and operated the water and wastewater systems at Fort Bragg since 2008.

Since 2008, along with successfully operating and maintaining the water and wastewater systems, Old North has managed many construction projects that have improved the reliability of these systems, provided jobs to local citizens, and developed key supplier relationships.

Testimonial

“The utility privatization program has been a win-win for the military bases and Department of Defense, as well as companies such as ours that are able to expand our footprint and provide critical services to the military, their families and civilians who work and live every day on these military bases.”
Robert J. Sprowls
President and Chief Executive Officer of American States Water Company and its subsidiaries
Fort Bragg Water Treatment

PRIVATE PARTNER RESPONSIBILITIES

  • Operating and maintaining the system•Renewing and replacing existing water and wastewater assets
  • Constructing new assets for base expansion or change of use with existing facilities
  • Regulatory compliance and reporting
  • Permitting for any new or upgraded facilities
  • Recruiting and staffing

BENEFITS

  • Enhanced the reliability of the water and wastewater systems, which in turn improves military readiness and resiliency
  • Implemented predictive maintenance capabilities
  • Developed master plan for full asset replacement over the contract life
  • Hardened IT infrastructure, including SCADA, to significantly strengthen cybersecurity
  • Enhanced firefighting capabilities
  • Created comprehensive GIS database of system assets to proactively manage system operation and recapitalization program
  • Developed hydraulic models to ensure recapitalization efforts are focused on the highest need areas of the system
  • Assisted the military in achieving its goal to economically privatize non-warfighting competencies
  • Enabled military to leverage private sector investment for future growth needs in light of federal fiscal constraints

DETAILS

  • Population served: 120,000 residents
  • Facility: Water Distribution and Sewer Collection Systems
  • Flow: 5 million gallons per day of water and 4.5 million gallons per day of wastewater
  • Other: 430 miles of water distribution lines and 315 miles of sewer collection lines; 163 sewer pump stations and 3 water pump stations; 9 elevated storage tanks;
  • Water Supply: Surface water is provided by local purveyors adjacent to base (Harnett County and Public Water Commission of Fayetteville)

About NAWC: The National Associations of Water Companies (NAWC) represents regulated water and wastewater companies, as well as ones engaging in partnerships with municipal utilities. Partnerships with NAWC membercompanies can come in many forms. The benefit of a contract operations approach is that these agreements can be scaled and customized to meet a community’s unique water and wastewater needs – there is no one size fits all approach. NAWC members provide 73 million Americans with safe and reliable water service every day. Learn more about NAWC and the benefits of working with our members by visiting, www.nawc.org.