FORT BELVOIR, Va. –
The Utilities Services Division of Defense Logistics Agency Energy awarded a utility services contract on Dec. 12, under the U.S. Navy’s Utilities Privatization Program, for the Naval Support Facility Indian Head, Maryland’s electric utility system.
This is the third utility services contract DLA Energy has supported in its partnership with the Navy’s Program Management Office for Utilities Privatization and Naval Facilities Engineering Systems Command. Naval Station Mayport, Florida’s wastewater system, and Naval Air Station Patuxent River, Maryland’s water and wastewater systems were privatized in Jun 2022 and Aug 2023, respectively.
“Southern Maryland Electric Cooperative will be the new system owner and will operate, maintain, renew and replace NSF Indian Head’s electric system throughout the 50-year period of performance of the contract,” said José Jiménez-Figueroa, DLA Energy Utility Services contracting officer. “They are also required to complete Initial System Deficiency Corrections to bring the system up to industry and Navy standards.”
Capt. David Wilson is the commanding officer of Naval Support Activity South Potomac, a component of Naval District Washington responsible for providing shore installation management services to local Navy facilities including NSF Indian Head.
“This project provides much-needed investment at NSF Indian Head in support of a direct critical mission enabler for the U.S. and Allied militaries,” he said in a Navy release. “By going the utilities privatization route, we’re not only able to start work earlier than through the typical funds programing process, but it will also be with a significant cost savings.”
DLA Energy Utility Services helps military services coordinate and consolidate Defense Department privatization efforts including gas lines, electrical distribution systems, water and wastewater systems, and thermal systems. In the utilities privatization process, military installations leverage the private company’s specialized expertise, innovation and operations and shift from the role of owner-operator to that of smart utility service customers.
“DLA Energy’s relationship with the Navy continues to grow as we work together to complement our unique strengths and experiences,” said Martha Gray, director of DLA Energy Utilities Services. “We’re proud to work with the Navy and our other Military Service partners, to provide pre- and post-award contracting and technical expertise for privatizing government-owned utility systems.”
Jiménez-Figueroa said the Navy is working to privatize other utility systems when cost avoidance can be achieved and it’s in the best interest of the Navy.
“Privatization of the electric utility system will save the Navy millions of dollars,” he said. “Additionally, the system owner will provide private capital and technical expertise to operate and improve the electric utility system.”
Naval Support Facility Indian Head is located less than 30 miles south of the nation’s capital and supports numerous scientific and response-force missions serving all branches of the military – Navy, Air Force, Army and Marines.
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 www.DLA.mil/Energy.