Utility Privatization of the Water and Wastewater Utility System Infrastructure at Fort Polk, LA

Utility privatization is a joint Army and Defense Energy Support Center

(DESC) effort to privatize the water and wastewater utility infrastructure at Fort

Polk, Louisiana. 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.