Sale of Authority RFP

The Sussex Service Authority (SSA) of Virginia has issued a Request for Proposal (RFP) soliciting bids for the purchase and operation of its public utility assets, which provide water and wastewater services to Sussex County. The Authority serves approximately 1,797 customers across multiple water systems and wastewater treatment plants. The sale includes real and personal property, infrastructure, and equipment necessary for operation. Proposals are required to demonstrate significant experience in utility system operations and acquisitions, present capital investment plans with prioritized infrastructure improvements, offer rate projections, and commit to community involvement and environmental compliance. Respondents must provide detailed organizational information, including staffing plans, and agree to terms set forth in an Asset Purchase Agreement covering purchase price, employment matters, insurance, financial assurances, indemnification, and environmental protections. Proposals are due by February 27, 2026, with submissions requiring nine hard copies and one electronic copy delivered to the Sussex Service Authority. Financial documentation for Sussex Service Authority illustrates a stable financial position, confirmed by consecutive unmodified audit opinions for fiscal years 2022, 2023, and 2024. The Authority maintains various bond issues and loans from multiple lenders, including the Virginia Resources Authority and USDA Rural Utilities, reflecting longstanding indebtedness to support its infrastructure. A detailed ten-year Capital Improvement Plan, revised as recently as June 2024, identifies prioritized maintenance and upgrades across key facilities such as the Black Swamp and Northeast Regional systems, emphasizing funding sources largely derived from cash reserves and pay-as-you-go methods. The sale and operation contract is underpinned by existing agreements with the Virginia Department of Corrections, including potable water and sanitary sewerage service contracts originating in 1994 and subject to amendments, which stipulate operational requirements, rate adjustments, debt service coverage, and regulatory compliance mandates. The place of performance is centered on Sussex County with specific delivery and inspection points on Department of Corrections property. The Authority's RFP and contract documents do not include typical federal acquisition clauses or socioeconomic set-asides but require compliance with local and federal water quality regulations, solid financial assurance, and community and environmental protections as core components of the transaction.