Water Utility System Privatization at Army Garrison Hawaii

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 ne