Utilities Privatization - Privatization of the Water Utility Systems at U.S. Army Garrison - Hawaii, Island of Oahu

This is a Sources Sought Notice (hereinafter "Notice"). This Notice is an essential step in determining market interest and feasibility in accordance with FAR Part 10 and is for information and planning purposes only. This Notice is solely for the Government's use as a market research tool. This Notice does not constitute a request for proposals, a solicitation or a request for quotes. If determined appropriate, then both a synopsis and a solicitation may be anticipated in the 2026 timeframe. All responsible sources are encouraged to submit a response to this Notice. All information received will be considered. Failure to respond to this Notice does not preclude a firm from offering on any resultant solicitation; however, a lack of interest in this requirement may keep this effort from moving forward competitively. The potential opportunity for set-asides for small businesses and small disadvantaged businesses will be considered on the basis of the responses received. This Notice shall not be construed as a commitment or authorization to incur costs in anticipation of an award. The Government is not bound to make any awards under this Notice. Interested parties should provide a statement of interest on company letterhead by no later than 3:00 P.M. EDT on June 29, 2026. Responses are preferred via email, but hard copies will also be accepted. If the statement of interest will be provided via hard copy, please notify the primary or secondary point of contact identified herein. At a minimum, the statement of interest shall address the following criteria: Capability and experience in the ownership and/or leasing, operation and maintenance of a water utility system; Financial capacity with regard to leasing or ownership interest, expansion, and operation of a utility system; Understanding of any applicable state or local utility law or franchise requirements and capability of complying with such requirements; Understanding of the federal, state and local environmental laws and regulations and its familiarity and experience with environmental compliance procedures and regulations for the state of Hawaii; Capabilities and estimated timeframes to initiate and complete extensive water infrastructure capital projects, which will be referred to as Initial System Deficiency Corrections (ISDC)*, to include financing, procurement, installation (including necessary phasing to maintain continuity of Government operations), commissioning, and initial system operation; A primary point of contact, including phone number and email address; Business size (other-than-small, small, or any subcategory of small business) relative to the NAICS codes 221310; and Status as a regulated or non-regulated utility currently operating in the state of Hawaii. * ISDCs are projects necessary to reach the standards typically maintained by the Contractor on its utility systems or to ensure compliance with applicable law and regulation, so that subsequent renewals and replacements (recapitalization) will permit the long-term safe and reliable operation of the utility systems. If you are interested in this effort, please provide the information requested above to the Defense Logistics Agency Energy (DLA Energy) Contracting Office. Requirement: The Defense Logistics Agency Energy (DLA Energy) seeks to identify and obtain information from responsible sources in connection with the acquisition of utility services for the privatization of the Water (NAICS 221310) distribution system at U.S. Army Garrison-Hawaii, Island of Oahu. Privatization is defined as the conveyance of a utility system to a municipal, private, regional, district or cooperative utility company or other entity. The conveyance may consist of rights, title and interest of the United States in the utility system. Utilities Privatization (UP) will be accomplished in accordance with 10 U.S.C. 2688 - Utility Systems: Conveyance Authority. It is intended that privatization will reduce the Government's life cycle costs; expand capabilities; repair failing equipment; and improve system Availability, Resiliency, & Efficiency within 5 years after conveyance. The resulting privatization will include ownership, operation, and maintenance of the system. The new owner shall operate and maintain the system and provide utility services to the Government. The Contractor/System Owner shall furnish all management, supervision, permits, equipment, supplies, materials, transportation and any other incidental items or services required for the complete ownership and provision of utility services by the use of these utility systems being privatized, including operation, maintenance, repair, upgrades and improvements to the utility systems. All responsibility for maintaining reliable service, including such items as environmental compliance, maintenance costs, major system renovations, construction, equipment, manpower and overhead costs shall become the responsibility of the new utility system owner. Installation Description U.S. Army Garrsion-Hawaii (USAG-HI) is responsible for all of the U.S. Army installations located on Oahu and the Big Island of Hawaii, which includes three fixed-wing airfields, 22 helipads and six major training areas over nearly 200,000 acres. USAG-HI supports the needs of service members from the Army, Marines, Navy, Air Force, Hawaii Army National Guard, Hawaii Air National Guard, and Reserves. USAG-HI is headquartered at Wheeler Army Airfield, which is approximately 20 miles from the state capital of Honolulu. USAG-HI has more than 24,000 service members (active, reserve, guard), 12,000 civilian workers, and supports more than 28,000 retirees and more than 32,000 family members living both on and off base. The Garrison s day-time population is estimated to include nearly 100,000 active-duty military personnel, civilians, family members and retirees across 22 military installations and training areas. System Description USAG-HI is considering the potential privatization of the water utility systems serving Schofield Barracks Main Post, Wheeler Army Airfield (WAAF), Schofield Barracks East Range, Pililaau Army Recreation Center (PARC), Fort Shafter, Tripler Army Medical Center (TAMC), Fort DeRussy, Helemano Military Reservation (HMR), Kahuku Training Area, Aliamanu Military Reservation (AMR), and Makua Valley Training Area, Coast Guard Housing, Field Station Kunia (FSK), Dillingham Military Reservation (DMR), and Lightning Academy. The USAG-HI water utility systems to be privatized under this solicitation include the distribution systems within the housing areas. Details for the water utility systems at each of these locations are included below. Schofield Barracks (SB) The SB system includes groundwater source wells, a centralized water treatment plant (WTP), and a comprehensive distribution network. The WTP has a treatment capacity of approximately 4 to 9 million gallons per day (MGD) and serves Schofield Barracks along with several adjacent military installations and supported sites. Source water withdrawal is regulated and allocated by the State of Hawaii Department of Land and Natural Resources, Commission on Water Resources Management. The facility operates via an automated SCADA system and includes specialized treatment infrastructure, including stripping towers for the removal of volatile organic compounds (VOCs). Water is sourced from a deep groundwater aquifer. The extraction and delivery infrastructure involves highly complex, deep subterranean shafts and reinforced routing that passes beneath major civilian transportation corridors. Interested vendors must possess the capability to operate and maintain large-scale, deep-well pumping operations and structurally complex underground assets. Schofield Barracks Main Post The SB distribution infrastructure consists of multi-million gallon storage tanks, booster pump stations (BPS), and a comprehensive network of piping and valves. The distribution system is topographically divided into multiple pressure zones to manage flow and demand across the installation. The system utilizes centralized pumping infrastructure to transfer water between the lower and upper pressure zones. The primary booster pump station is equipped with multiple high-capacity pumps and industrial-scale motors designed to maintain necessary system head and flow rates across the varied elevation. This station also features dedicated emergency backup power generation. Schofield Barracks East Range The distribution system extending to the East Range and adjacent supported areas is supplied by the main water treatment plant via dedicated booster pump stations and multiple large-capacity storage tanks. The network is tiered across several pressure zones (lower, middle, and upper) to manage elevation changes and ensure adequate pressure to various end-users. Water is conveyed through a combination of pumped and gravity-fed distribution mains. The infrastructure supports a variety of…