Utility Services

Utility privatization is a joint Army and Defense Energy Support Center (DESC) effort to privatize the water and wastewater utility infrastructure at Fort Hood, Texas. Privatization is the total divestiture of a utility system through the transfer and conveyance of the installation's utility infrastructure assets in conjunction with and for the purpose of the conveyee providing utility distribution services on a long-term basis. The successful conveyee assumes ownership, operation, maintenance, and repair of the previously Government-owned utility system infrastructure. The privatization process includes: (1) the sale of the utility infrastructure; (2) the acquisition of utility services on the privatized system(s); and (3) the granting of an easement. The sale of the utility infrastructure is a property disposal action, in accordance with 10 U.S.C. - 2688, which is not covered under the Federal Acquisition Regulation (FAR). The acquisition of utility service, which is covered by the FAR, takes place in conjunction with the sale of the utility infrastructure. These are two separate actions that are contingent upon one another and take place at the same time. In accordance with 10 U.S.C. - 2688, conveyance of the system(s) may occur when the long-term economic benefit of the U.S. Government exceeds the long-term economic cost.