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[Federal Register Volume 89, Number 230 (Friday, November 29, 2024)]
[Notices]
[Pages 94717-94718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28030]

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DEPARTMENT OF DEFENSE

Department of the Navy

Notice of Intent for Naval Station Newport Water and Wastewater 
Infrastructure Divestment

AGENCY: Department of the Navy (DON), Department of Defense (DoD).

ACTION: Notice.

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SUMMARY: The DON (or ``Government'') is issuing this solicitation to 
enter into a land conveyance agreement (``Solicitation'') to convey 
Naval Station Newport's (``NS Newport'') water and wastewater 
infrastructure, located in Newport, RI. The Navy is investigating the 
use of the Exchange Pilot Authority to execute a long-term divestment 
strategy for the water and wastewater infrastructure at Naval Station 
Newport. The DON vision is to divest of the Government owned class II 
property via a Bill of Sale, then enter into a mutually beneficial real 
estate agreement containing the easement area for the utilities 
traversing the DON property, whereby an interested eligible party 
maintains the infrastructure and provides water and wastewater services 
to the installation, Government entities and surrounding community via 
a Utility Service Contract. In-Kind Consideration (IKC) will be 
provided to the DON in the form of credit towards the water and 
wastewater bill.

DATES: The Secretary concerned shall submit a copy of the Federal 
Registrar notice to ASD(S) no later than 7 calendar days prior to 
notification. Request for Proposals (RFP) will be released to SAM.gov 
on December 13, 2024.

FOR FURTHER INFORMATION CONTACT: Command NAVFAC MIDLANT NORFOLK, Attn: 
Heather Stadler, Deputy Director Real Estate Division, 757-341-2000 
[email protected].

SUPPLEMENTARY INFORMATION: DON is seeking a potential offer to 
demonstrate the following qualifications in response to the Request for 
Proposal. Summary of relevant experience, past and present performance, 
financial information/history, as well as Development Plan and 
Maintenance and Management Capability. The submitted information will 
assist DON in selecting one offeror to move forward into exclusive and 
technical negotiations. The following entities have been identified as 
potential offerors due to their response to the Request For Information 
(RFI), released on March 8, 2024: American Water, Carver Water, and 
ASUS.
    Naval Station Newport, on behalf of DON, is currently responsible 
for the operation, maintenance, distribution, and capital improvements 
of the Installation's Potable Water and Wastewater Infrastructure. Due 
to limited manpower, funding, and utilization, the Business Case 
Analysis (BCA) determined it is the best interest of DON to divest 
these assets and associated operations to an eligible entity willing 
and able to enter into an

[[Page 94718]]

Exchange Agreement with the DON. The infrastructure proposed is owned 
by the Government, who is responsible for the operation and 
maintenance. The Navy infrastructure ties into larger City of Newport 
(``City'')-operated systems, and the City provides water and wastewater 
services to both Government and private customers. The underlying 
property is primarily owned by the DON, but exceptions exist where the 
DON is required to provide services on non-Government owned land or 
where DON infrastructure runs on or through non-Government owned land 
to connect with the City provider of potable water and wastewater 
treatment or provide services to private customers. The DON will 
continue operating under its agreements with the City for purchase of 
the commodities, particularly related to its rate determinations and 
allowable allocations.
    The DON expects the selected offeror to acquire the utility 
infrastructure and approximately 464.44 acres of property surrounding 
the system.
    The potable water distribution infrastructure consists of two 
separate licensed potable infrastructure that are regulated by the 
Rhode Island Department of Health (RIDOH). These two infrastructures 
are for the Main Base and Fort Adams. The infrastructure consists of 
approximately 55 miles of distribution piping, four fire pump stations 
and four underground reservoirs. Potable water is purchased from the 
City of Newport through metered connections.
    The water infrastructure consists of the following components:
     Four (4) fire pumping stations;
     Four (4) underground reservoirs;
     520 fire hydrants;
     3,000 valves; and
     55 miles of potable water line.
    The Naval Station Newport wastewater collection and pumping system 
includes systems across the installation serving Coasters Harbor 
Island, Coddington Cove, Coddington Point, the Naval Undersea Warfare 
Center (NUWC), Navy Housing, and other activities. There are a total of 
15 service areas that make up the sanitary sewer collection system. 
Additionally, sewage flows from private customers that purchase water 
directly from the municipality and are directed to the NAVSTA sanitary 
sewer system. The sewer collection system consists of approximately 33 
miles of gravity lines, six miles of force mains, and 15 pump stations. 
Wastewater is discharged through three main connections to the City of 
Newport. These are pump stations 48 (Coddington Cove), 68 (Training 
Station), and 338 (Coddington Point). The average sewage flow for Naval 
Station Newport is approximately 1 million gallons per day. Naval 
Station Newport purchases all of its wastewater treatment services from 
the City of Newport.
    The City of Newport recently completed a $35M+ capital improvement 
project at the wastewater treatment plant facility and the Navy 
provided funding in the amount of $5.863M in FY20 for the Navy 
proportional share of these improvements.
    The wastewater collection infrastructure can be broken down as 
follows:
     33 miles of gravity service mains;
     six miles of force mains;
     790 manholes; and
     16 pump stations.
    Minimum Fair Market Value: An appraisal will be completed by the 
Selected Offeror during Phase II of the RFP in accordance with the 
Uniform Standards of Professional Appraisal Practice (USPAP) and 
reviewed by a government appraiser. The appraisal will be completed 
after the survey of the infrastructure has been accepted and will 
establish the minimum fair market value.
    Authority: Under the use of 10 U.S.C 2869, Exchange of Property at 
Military Installations, as further amended by section 2862 for the 
William M. ``Mac'' Thornberry National Defense Authorization Act (NDAA) 
for Fiscal Year 2021, as implemented by the Office of the Assistant 
Secretary of Defense (Sustainment) Memo, ``Establishment of Pilot 
Program to Expand Real Property Exchange Authority'', dated 30 June 
2021, the DON is investigating the divestment of the water and 
wastewater infrastructure at Naval Station Newport. In exchange, DON is 
seeking IKC, as authorized under the authority, to include the five-
year pilot program, to exercise temporary expanded real property 
exchange authority to accept installation support services (as defined 
in 10 U.S.C. 2679(f)).

    Dated: November 25, 2024.
A.J. Gioiello,
Lieutenant Commander, Judge Advocate General's Corps, U.S. Navy, 
Federal Register Liaison Officer.
[FR Doc. 2024-28030 Filed 11-27-24; 8:45 am]
BILLING CODE 3810-FF-P
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