Most people never see services like wastewater management and water distribution. The cost is built into their taxes, or into initial subdivision fees. Military bases have to deal with this, too, and the preference in the USA seems to be moving toward very long-term fixed-price contracts. A pair of recently-announced contracts from the Defense Energy Support Center (DESC) in Fort Belvoir, Va. worth over $240 million serve to illustrate. Both are firm-fixed-price contracts with prospective price re-determination, covering a 50-year contract period for ownership, operation and maintenance of water distribution system and wastewater collection systems:

Sept 14/07: American States Utility Services, Inc. in Costa Mesa, Calif. won a $143.8 million contract for the US Army’s Fort Jackson Army Installation and environs in South Carolina. Date of performance completion is December 2057. There were 340 proposals originally solicited, and also web solicited, with 5 responses to the Defense Energy Support Center (DESC) in Fort Belvoir, Va. (SP0600-07-C-8251).

Sept 14/07: American Water Operations and Maintenance, Inc. in Voorhees, N.J., won a $98.1 million contract for the US Army’s Fort A.P. Hill Army Installation and environs in Virginia. Date of performance completion is December 2057. There were 340 proposals originally solicited, and also web solicited, with 5 responses (SP0600-07-C-8254).