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NAVFAC Southeast Awards Multi Utility System Privatization Contract

Navy NewsStand

Story Number: NNS080308-04
Release Date: 3/8/2008 8:11:00 PM

From Naval Facilities Engineering Command Southeast Public Affairs

BEAUFORT, S.C. (NNS) -- Naval Facilities Engineering Command (NAVFAC) Southeast awarded an estimated $251.4 million contract to the Beaufort-Jasper Water & Sewer Authority (BJWSA) of Okatie, S.C., Feb. 28.

The contract covers the operation and maintenance of the water and wastewater utility systems at the Marine Corps and Naval installations in the Beaufort, S.C. area as part of a 50-year privatization deal.

"This is the first time the Navy has combined more than one type of utility system from more than one installation into a privatization deal," said Tom Fressilli, NAVFAC Southeast utilities privatization program manager.

The four water distribution systems and four wastewater collection and treatment systems that are part of this contract are located at the Marine Corps Air Station and the Naval Hospital in Beaufort, S.C.; the Laurel Bay Housing in South Carolina; the Marine Corps Recruit Depot in Parris Island, S.C.

The BJWSA proposal offered a total cost for the 50-year term that was 14 percent lower than the "should cost" of continued government ownership.

"When these respective total costs are expressed as equivalent uniform annual costs, the BJWSA proposal represents an annual cost avoidance of approximately $1.34 million per year," said Fressilli.

The work to be performed provides for initial system modifications required to bring the systems up to industry standards, operation, maintenance and repair of systems, as well as renewal and replacement of the system's components over the term of the contract.

The February contract signing between the Navy and BJWSA marked the end of a privatization process that began in 1999 with the issuance of an area-wide request for proposals, which solicited proposals for a large number of Marine Corps and Navy utility systems at installations throughout Georgia, South Carolina, and northern Florida.

According to Fressilli, the Navy and Marine Corp's acceptance of the BJWSA proposal, which aggregated these eight separate utility systems into one privatization deal, represents the largest number of systems that will be privatized as a result of that solicitation.

For more news from Naval Facility Engineering Command, visit www.navy.mil/local/navfachq/.