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News | Feb. 27, 2020

Utility Services expands support to U.S. Navy

By Irene Smith DLA Energy Public Affairs

Defense Logistics Agency Energy is expanding its utilities partnership with the U.S. Navy, increasing energy reliability, security and resilience.

The first joint DLA Energy and Navy utilities privatization effort was released in October 2019 for a wastewater utility system at Mayport, Florida. In a Memorandum of Understanding between DLA Energy and the Navy, they agreed to a release of one new solicitation in fiscal 2020 and fiscal 2021. 

“This reform initiative will save the Department of Defense $2.3 million between fiscal years 2019-2024,” said DLA Energy Utility Services Director Martha Gray. “DLA Energy anticipates a long and successful relationship with its new Navy partner.”

In February, the DLA Director Army Lt. Gen. Darrell Williams, and DLA Energy Commander Air Force Brig. Gen Albert G. Miller announced that DLA Energy Utility Services had completed the 2018 DoD Reform Initiative, DoD Utility Systems Conveyance. 

“While we have MOUs with the Army and Air Force and have been working to help them build more secure and resilient utilities infrastructure for nearly 20 years, the Navy was not actively pursuing the program,” said DLA Energy Utility Services Deputy Director Laurie Carlson. “I believe the Navy saw the success the Army and Air Force were having and realized this could enhance and rehabilitate its systems.”

DLA Energy Utility Services helps military services coordinate and consolidate DoD privatization efforts including gas lines, electrical distribution systems, water and wastewater systems, and thermal systems. In the utilities privatization process, military installations shift from the role of owner-operator to that of smart utility service customers.

“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,” Gray said. “We offer cradle-to-grave contracting support including full range of pre and post-award contract administration for the 50-year contract term.”

The Utilities Privatization program builds energy security/resilience by improving utility systems. To date, system owners have invested $1.3 billion in initial capital improvements.

Supporting the DoD Reform Initiative aligns with the DLA Strategic Plan, specifically the line of effort Strong Partnerships and DLA Energy’s line of effort Mature Relationships with DOD, Industry and Allied Partners, to improve DoD-wide efficiency in managing utility system conveyance efforts.

“The benefit to DoD is a single face to Industry that increases efficiency and provides comprehensive end-to-end contract management,” said Williams. “DLA Energy has the knowledge and experience to provide cost savings and consistency to the Navy’s utilities privatization program.”