Water storage tank

HILL AIR FORCE BASE, Utah -- This water storage tank is part of the water distribution system that American Water Operations and Maintenance, Inc., will maintain for the next 50 years. The $288 million Utilities Privatization contract was executed in January 2014. The Air Force has privatized 64 systems, creating a cost avoidance of $329 million since 1999. (U.S. Air Force photo/Dave Matthews)

Water storage tank

HILL AIR FORCE BASE, Utah -- This wet well and lift station is part of the water distribution system and wastewater collection system privatized in January 2014 here. The Air Force Civil Engineer Center has upgraded systems by privatizing 64 in the last 15 years. Currently, the Air Force has 87 systems, including electric, natural gas, water and wastewater that are in various stages of the privatization solicitation process. (U.S. Air Force photo/Dave Matthews)

Water storage tank

HILL AIR FORCE BASE, Utah -- This well pump here extends 800 feet into the ground and pumps 1.5 million gallons of water a day from an aquifer running under the base. The Air Force privatized the system in January 2014 to ensure it is maintained for the next 50 years. (U.S. Air Force photo/Dave Mathews)

Utilities privatization program helps modernize Utah base

Published Jan. 13, 2014
By Jennifer McCabe
Air Force Civil Engineer Center Public Affairs

TYNDALL AIR FORCE BASE, Fla. -- The Air Force recently signed a contract with American Water Operations and Maintenance, Inc., Voorhees, N.J., to privatize the water distribution system and wastewater collection system at Hill Air Force Base, Utah. The $288 million, 50-year-contract will allow Hill AFB to shift from the role of owner-operator to that of smart utility service customer.

"Utilities privatization allows military installations to obtain safe utility systems that meet current industry standards," said Rick Weston, who leads the Air Force Civil Engineer Center UP program management office. "Maintaining utility systems is no longer a core competency of the Air Force. Private industry does it day in and day out, so they can normally do it cheaper than we can."

Building sustainable Air Force installations requires an investment in dependable energy-efficient utility systems. For the past 15 years, the Air Force has upgraded utility systems by privatizing them. The service has privatized 64 systems, creating a cost avoidance of $329 million. Currently, the Air Force has 87 systems, including electric, natural gas, water and wastewater that are in various stages of the privatization solicitation process.

"Historically, bases have been underfunded," said Weston. "Over the past 20 or 30 years, maintaining Air Force utility systems was not a high priority. Consequently, our systems have degraded substantially."

American Water Operations and Maintenance, Inc. plans to invest approximately $3.6 million in the first three years to support bringing the systems up to industry standards.