8-KOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Corporate Update (Jul 1, 2022)

Filed July 1, 2022For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) announced a significant contract win through its Military Services Group. The company has been awarded a 50-year contract valued at approximately $341 million to own, operate, maintain, and replace the wastewater utility system assets at Naval Station Mayport in Jacksonville, Florida. This marks a key expansion for AWK's Military Services Group, as it represents their first contract with a U.S. Navy installation and expands their footprint to 18 military installations.

Key Highlights

  • 1AWK awarded a 50-year contract for wastewater utility system at Naval Station Mayport, Florida.
  • 2The contract has an approximate total value of $341 million over its 50-year term.
  • 3This contract is effective July 1, 2022.
  • 4The award represents the 18th installation for AWK's Military Services Group.
  • 5This is the first contract secured by AWK with a U.S. Navy installation.
  • 6The contract is part of the U.S. government's Utilities Privatization Program.
  • 7The contract value is subject to annual economic price adjustments.

Frequently Asked Questions

This 8-K filing announces a material contract award for American Water Works Company, Inc. (AWK) through its Military Services Group, specifically for operating and maintaining the wastewater utility system at Naval Station Mayport.

The contract is valued at approximately $341 million over a 50-year period, providing a long-term, stable revenue stream for the company. The value is subject to annual economic price adjustments.

This contract is significant as it is the first secured with a U.S. Navy installation, expanding the group's footprint to 18 military installations and diversifying its client base within the Department of Defense.

The Utilities Privatization (UP) Program is a U.S. government initiative that allows the Department of Defense to divest itself of non-core utility systems (water, wastewater, and electric) and transfer them to private sector entities for ownership, operation, and maintenance. This program aims to improve utility system efficiency and reliability while reducing government operating costs.