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News | Sept. 6, 2023

DLA Energy continues to expand utilities support to U.S. Navy

By Connie Braesch DLA Energy Public Affairs

Defense Logistics Agency Energy continues to expand its utilities partnership with the U.S. Navy, increasing the service’s energy reliability, security and resilience.

DLA Energy Utility Services worked with Naval Facilities Engineering Systems Command to award its second utilities privatization contract on Aug. 15 at Naval Air Station Patuxent River, Maryland, for the water and wastewater systems. 

“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.”

The Department of Defense is working to leverage commercial sources to ensure it has reliable, resilient, and cyber secure energy resources, generation assets, distribution infrastructure, and facility-related controls and data. Military bases are working to "privatize" electric, gas, water, wastewater, and other utility systems to transfer ownership to the experts and ensure compliance with energy security, energy resilience, and cybersecurity requirements.

DLA Energy Utility Services coordinates and consolidates utilities privatization efforts to help military installations shift from the role of owner-operator to that of smart utility service customers.

"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.

American States Utility Services Inc., San Dimas, California, was awarded the 50-year $348 million fixed-price with economic-price-adjustment contract for the ownership, operation, and maintenance of water and wastewater utility systems on NAS Patuxent River including any repair, upgrade, or improvement of the systems. Under the contract, there is a 6-month transition period to ensure seamless operations are established and inventory assets are fully accounted for in the contract.

American States will provide water treatment, storage and distribution across the main base and beyond to include the Navy Recreation Center Solomons, Webster Field and Glenn Forest Housing. Patuxent River NAS will keep ownership of the water and land, leaving American States responsible for treating/transporting the water and maintaining all of the systems.

“We are very pleased to have been awarded our first Navy contract and we take great pride in our strong relationship with the U.S. government and their continued confidence in our expertise in managing water and wastewater systems on military bases,” stated Robert J. Sprowls, President and CEO of American States Water Company in a press release.

NAS Pax River is headquarters to the Naval Air Systems Command; the U.S. Naval Test Wing Atlantic; the Commander, Fleet Readiness Centers; the Naval Air Station Port Operations; the U.S. Coast Guard Station St. Inigoes; and is responsible for the ship/shore/air excellence integration supporting the Navy’s principal flight and ground test activity.

The first utility services contract award with the U.S. Navy was for the wastewater utility system at Naval Station Mayport, Florida, which successfully transferred ownership earlier this year. Read more about other utilities privatization projects in the DLA Newsroom

DLA Energy Utility Services plans to continue growing its partnerships and helping military and federal customers increase energy reliability, security and resilience. Learn more about DLA Energy Utility Services and other DLA Energy programs and services at