Sept. 9, 2003 -- CH2M HILL has been awarded ownership and a 50-year contract for the operations and maintenance of the water and wastewater systems at Fort Campbell, Kentucky.
Valued in excess of $500 million, the recently awarded contract transfers ownership and all responsibilities of ownership to CH2M HILL. Included among these responsibilities is system capital investment, regulatory compliance, environmental management, planning, asset recapitalization, and long-term operations and maintenance.
Through this contract, CH2M HILL will provide water and wastewater utility services at a significant long-term savings to Fort Campbell and the U.S. Army. The contract, the first of its kind for CH2M HILL, is part of the Department of Defense Utility Privatization initiative authorized under 10 USC 2688.
The new arrangement with CH2M HILL is a win-win for taxpayers and the Fort Campbell community. In addition to reduced long-term utility operational costs, CH2M HILL will fund upgrades to the aging Fort Campbell infrastructure, improving reliability, efficiency, and quality of service.
CH2M HILL was awarded the contract based on demonstrated expertise and capability in all areas of water and wastewater utility system ownership and operations, including planning, financing, design, rate development, environmental compliance, construction, and operations and maintenance.
"This contract culminates several years of effort between Fort Campbell, the U.S. Army Engineering and Support Center (Huntsville, Alabama), and CH2M HILL. It also transforms CH2M HILL's 25-year contractor-only relationship with the U.S. Army into a 50-year partnership," said Jim Ferris, Group President, CH2M HILL Energy, Environment and Systems business. "Our intent is to add even more value to the Fort Campbell team and to provide the Army with legendary service in the delivery of this water and wastewater utilities privatization contract."
CH2M HILL also has been chosen by the U.S. Army Engineering and Support Center (Huntsville, Alabama) as the "Best Value Contractor" for a similar water/wastewater privatization contract with Fort Irwin National Training Center. The due diligence stage of this contract is underway, with a final contractor selection expected in 2004. Fort Irwin is located in California's Mojave Desert.
The water and wastewater systems at Fort Campbell include a 7.6 million gallon per day (mgd) water treatment plant, a 4 mgd wastewater treatment plant, 5 elevated water tanks, a ground storage tank, 64 lift stations, and 2 booster pump stations, serving over 3,000 buildings and 4,000 housing units.
"We are extremely pleased to be awarded this contract and look forward to being a valued member of the Army team at Fort Campbell. Over the next several years, we will embark on major system improvements that will result in reliable, high quality water and wastewater services for the Fort Campbell community," said Gary Craft, CH2M HILL utility services vice president and lead negotiator on the Fort Campbell contract.
Fort Campbell, home of the 101st Airborne Division, supports the third largest military population in the U.S. Army and the seventh largest in the Department of Defense. One of the largest installations in the world, Fort Campbell covers more than 105,000 acres, nearly two-thirds of which are in Tennessee.
