American Water Will Operate Texas Military Base Utility For Next 50 Years

By Joe Cogliano

Camden, NJ-based American Water (NYSE: AWK) has landed a nearly $450 million contract to own, operate, and maintain the water utility at Joint Base San Antonio, Texas for the next 50 years, according to the Department of Defense.

The 50-year award, which contains no option periods and is subject to an annual economic price adjustment, includes water and wastewater systems. It brings the total number of military bases served by American Water to 15.

Joint Base San Antonio is comprised of Randolph Air Force Base, Fort Sam Houston, Camp Bullis, and Lackland Air Force Base. The installation expands across 11 geographically separated parcels of land and over 46,539 acres in support of 266 military service mission partners. The water contract was administered by the Defense Logistics Agency Energy in Fort Belvoir, VA, which received a total of seven proposals.

Prior to this contract, the installation managed its own utilities.

“Our continued partnership with the Department of Defense to provide safe, clean and reliable water and wastewater service to our nation’s servicemen and women, and the families and civilians that support our country’s readiness, is a point of pride for American Water,” said Susan Story, president and CEO of American Water, in a news release.

American Water, the nation’s largest publicly traded water and wastewater utility company, employs more than 7,100 people who provide drinking water, wastewater, and other related services to more than 14 million people in 46 states.