Utilities Privatization of the Water System at U.S. Army Garrison-Hawaii (USAG-HI), Island of Oahu
DEPT OF DEFENSE.DEFENSE LOGISTICS AGENCY.DLA ENERGY.DLA ENERGY · Response deadline: Thu, 07 Jan 2027
What the government is buying
The U.S. Army is seeking a contractor to take over ownership, operation, and maintenance of the water utility system at U.S. Army Garrison-Hawaii on the island of Oahu. This is a utilities privatization contract—a model the Department of Defense uses to transfer responsibility for infrastructure systems to private-sector operators while the government retains oversight.
Under a water system utilities privatization, the contractor typically assumes full responsibility for producing, treating, distributing, and maintaining the water supply infrastructure. This includes wells, treatment facilities, storage tanks, distribution mains, and service connections. The arrangement generally involves the contractor purchasing the existing system assets from the government and operating under a long-term lease or service agreement.
NAICS 221310 classifies this as Water Supply and Irrigation Systems, covering establishments that operate water treatment plants and water supply systems. The place of performance is Schofield Barracks, a major Army installation on Oahu northwest of Honolulu.
Key facts
| Attribute | Value |
|---|---|
| Agency | DLA Energy (Defense Logistics Agency) |
| Notice type | Solicitation |
| Solicitation number | SP060026R0813 |
| NAICS | 221310 — Water Supply and Irrigation Systems |
| Set-aside | No Set aside used |
| Response deadline | January 7, 2027 at 3:00 PM ET |
| Place of performance | Schofield Barracks, HI |
Who can bid
This solicitation is full and open competition with no set-aside, meaning any responsible bidder—large or small business—may submit a proposal. Water utility privatization contracts typically attract experienced utility operators, infrastructure firms, and energy/water service companies with significant technical and financial capacity.
Given the complexity of owning and operating a military installation water system, the government likely evaluates bidders on: technical expertise in water treatment and distribution; financial capacity to acquire assets and sustain operations; compliance with Safe Drinking Water Act and EPA regulations; security clearance capabilities; and experience with utility privatization or similar long-term service contracts.
Small businesses may participate but should realistically assess whether they can meet bonding, insurance, and capitalization requirements typical of utility privatization transactions. Joint ventures or teaming arrangements with larger firms may be worth exploring—see the solicitation for any specific requirements or preferences.
How to put together a competitive bid
Utility privatization proposals require substantially more than typical service contracts. Focus on these elements:
Technical approach: Detail your water system operations plan, including treatment methodologies, distribution system maintenance, leak detection, and capital improvement planning. Address water quality monitoring and regulatory compliance protocols specific to Hawaii's unique environmental conditions.
Financial and legal structure: Present your asset valuation methodology, proposed transaction structure, and financing arrangements. Utility privatizations involve purchase-and-sale agreements; demonstrate capability to execute complex commercial transactions.
Personnel and transition: Describe your plan for assuming operations from current Army staff, including workforce transition, training, and retention strategies. Military utility privatizations often involve detailed personnel considerations.
Past performance: Document comparable utility operations, especially DOD or federal utility privatization experience. Highlight systems of similar scale and complexity.
Hawaii-specific considerations: Address supply chain logistics, local labor availability, corrosion and geological challenges, and island-specific emergency preparedness for natural disasters.
Next steps
Download the full solicitation SP060026R0813 from SAM.gov to review the complete terms, evaluation criteria, and mandatory proposal requirements. Note the firm deadline: January 7, 2027 at 3:00 PM Eastern Time. Late submissions will not be considered. Given the complexity of this procurement, allow substantial lead time for internal approvals, partnership negotiations, and proposal development.
View the official notice on SAM.gov →