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The US Defense Logistics Agency (DLA) has awarded a 50-year contract to Hawaiian Electric to distribute power at 12 US Army installations on the Oahu island in Hawaii, US.

Pursuant to the $638.5m contract, Hawaiian Electric will own, operate and maintain the electric distribution system serving the 12 installations.

Army installations to be covered under the contract include Wheeler Army Airfield, Schofield Barracks, Fort Shafter, Tripler Army Medical Center and housing areas.

DLA started the competitive process for the contract in 2016 and received multiple bids.

Hawaiian Electric president and CEO Alan Oshima said: “In a rigorous and competitive process that lasted nearly three years, we made the case that we could deliver a cost-effective, long-term solution for the army.

“I’m proud that a Hawaii-based company was selected to provide these vital services and we look forward to being a trusted energy partner to the army and to thousands of military service members for decades to come.”

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By GlobalData

The maintenance and utility improvement effort supports the US Army’s Utilities Privatization Program designed to upgrade and sustain utilities.

Hawaiian Electric provides electricity to the army for distribution to its facilities.

US Army Garrison Hawaii commander colonel Tom Barrett said: “The army needs secure, reliable energy to do our mission and that’s what this effort is all about.

“Privatising the army’s electrical system on Oahu supports energy resilience, and energy resilience is critical to army readiness.”

The contract is subject to the approval of the Public Utilities Commission. The company will soon submit an application for approval.

Hawaiian Electric will also replace ageing distribution infrastructure as part of the contract.