The US government has awarded a new privatisation contract to American States Utility Services (ASUS), a contracted services subsidiary of American States Water Company, to provide maintenance services at the US Navy's Naval Air Station Patuxent River (NAS Pax River) air station.

The contract is set to have an initial value of approximately $349m over a period of 50 years. This figure is subject to yearly economic price adjustments.

The company will be responsible for the water distribution and wastewater collection systems at NAS Pax River in Maryland, US.

More specifically, it will operate, maintain, and supply construction management services for the water distribution and wastewater collection systems.

ASUS will also be able to receive more funding under this contract for new construction projects given its contract amendments with the US government.

The contract has a six-month transition time to guarantee that smooth operations are maintained and inventory assets are entirely accounted for.

American States Water Company president and CEO Robert Sprowls said: “We are very pleased to have been awarded our first navy contract and we take great pride in our strong relationship with the US government and their continued confidence in our expertise in managing water and wastewater systems on military bases.

“We are well-positioned to continue competing for new contracts in the future and we consider it a privilege to serve the men and women of the US military.”

ASUS will now provide water and wastewater utility services at 12 military stations spread across eight US states, as per the contract.