Utilities Privatization - Privatization of the Water Utility Systems at U.S. Army Garrison - Hawaii, Island of Oahu
Overview
Buyer
Place of Performance
NAICS
PSC
Set Aside
Original Source
Timeline
Qualification Details
Fit reasons
- NAICS alignment with historical contract wins in similar service areas.
- Scope strongly matches core technical capabilities and delivery model.
Risks
- Past performance thresholds may require one additional teaming partner.
- Potential clarification needed on staffing minimums before bid/no-bid.
Next steps
Validate eligibility requirements, assign capture owner, and schedule partner outreach to confirm teaming strategy before submission planning.
Quick Summary
The Defense Logistics Agency Energy (DLA Energy) is conducting a Sources Sought for market research regarding the Privatization of Water Utility Systems at U.S. Army Garrison - Hawaii (USAG-HI) on the Island of Oahu. This initiative aims to identify qualified firms for the ownership, operation, and maintenance of water utility systems across 14 installations. Responses are due by June 29, 2026, at 3:00 P.M. EDT.
Purpose & Scope
This Sources Sought Notice is for information and planning purposes only, serving as market research to determine interest and feasibility for privatizing water utility systems under 10 U.S.C. § 2688. The goal is to reduce government life cycle costs, expand capabilities, repair failing equipment, and improve system availability, resiliency, and efficiency within five years. The scope includes full ownership, operation, maintenance, repair, upgrades, and environmental compliance for the water distribution systems.
The systems to be privatized serve various USAG-HI locations, including Schofield Barracks, Wheeler Army Airfield, Fort Shafter, Tripler Army Medical Center, and others, encompassing complex infrastructure such as deep groundwater wells, treatment plants, SCADA systems, and distribution networks across multiple pressure zones. Some locations involve unique considerations like archaeological sites or secure facilities.
Response Requirements
Interested parties must submit a statement of interest on company letterhead by June 29, 2026, 3:00 P.M. EDT. The statement should address:
- Capability and experience in water utility system ownership/O&M.
- Financial capacity for leasing/ownership, expansion, and operation.
- Understanding of applicable state/local utility and environmental laws in Hawaii.
- Capabilities and timeframes for Initial System Deficiency Corrections (ISDC) projects.
- Primary point of contact.
- Business size relative to NAICS 221310 (Water Supply and Irrigation Systems).
- Status as a regulated or non-regulated utility in Hawaii.
Contract Considerations
The Government is exploring a Hybrid Contract Pricing Model for a potential 50-year contract, allowing both regulated tariff and unregulated fixed-price offers. This includes an annual Economic Price Adjustment (EPA) for Operations and Maintenance (O&M) and Prospective Price Redetermination (PPR) every three or five years for Renewals and Replacements (R&R). Feedback is also sought on a Novel Approach to Initial System Deficiency Correction (ISDC) Projects, specifically regarding a separate, short-term amortized funding stream to balance risk and capital recovery.
Cybersecurity & Access
This effort requires Cybersecurity Maturity Model Certification (CMMC) Level 2 with an independent assessment by a C3PAO. Access to secure documents, if a competitive action proceeds, will require SAM.gov registration, a login.gov account, and Joint Certification Program (JCP) certification. Vendors are advised to begin the JCP process early due to its lengthy nature.
Timeline & Next Steps
This is a Sources Sought notice; it does not constitute a solicitation. A synopsis and solicitation are anticipated in the 2026 timeframe. The potential for small business and small disadvantaged business set-asides will be considered based on responses received.