Water and Wastewater Privatization

Earth Tech provided professional services in support of the US Air Force initiative to privatize water and wastewater utility systems at Eglin AFB. The task order also included privatization of the natural gas systems at Eglin AFB and Hurlburt Field. The three-phase project encompasses the following tasks.

Phase 1 includes production of a feasibility report consisting of:

Engineering/condition assessment and a review of regulatory issues related to privatization
A market research study to determine the level of interest in privatization among qualified bidders
An operational risk analysis to determine any risks that may impact the mission at Eglin and Hurlburt and methods of mitigation
An economic analysis of the cost of service and life-cycle cost analysis

Phase 2 includes:

Preparation of the draft RFP for privatization
Preparation of real estate documents
An environmental baseline survey
Transition plans
An environmental assessment under NEPA guidelines
A Comprehensive Analysis Report summarizing the findings of all Phase 1 and Phase 2 activities

Phase 3 is the procurement phase and includes:

Certified economic analysis
Full cost of service analysis and life-cycle cost analysis
Support to the Air Force in negotiations with bidders as well as selection of firm to acquire utility systems (with appropriate transfer documentation)

The privatization of the utility systems at Eglin AFB includes the treatment of several contentious issues unique to this facility. In particular, Eglin is a very large installation with ranges supporting a number of testing and training missions that cannot be performed elsewhere. Eglin is also the largest land area of any active Air Force base in the US. Because of close proximity to the fast growing Fort Walton Beach/Destin, Florida area, Eglin’s land and water are desirable to the adjacent development community. If mishandled, privatization could jeopardize Eglin’s mission due to encroachment on the Eglin ranges. Earth Tech worked closely with Eglin to mitigate these risks while structuring a viable privatization deal.