American States Water Company announced that its contracted services subsidiary, American States Utility Services Inc., has been awarded a 50-year contract by the U.S. government to operate, maintain and provide construction management services for the water distribution and wastewater collection facilities at Naval Air Station Patuxent River, a United States Navy air station located in Maryland. The initial value of the contract is estimated at approximately $349 million over a 50-year period and is subject to annual economic price adjustment. ASUS will also have the opportunity to generate additional revenues under this contract for new construction projects provided through contract modifications with the U.S. government.

Under the contract, there is a 6-month transition period to ensure seamless operations are established and inventory assets are fully accounted for in the contract. Naval Air StationPatuxent River (also known as NAS Pax River) is a United States naval air station located in St. Mary's County, Maryland, on the Chesapeake Bay near the Patuxent River.

NAS Pax River is headquarters to the Naval Air Systems Command, the U.S. Naval Test Wing Atlantic, the Commander, Fleet Readiness Centers, the Naval Air Station Port Operations, the United States Coast Guard Station St. Inigoes, and is responsible for the ship/shore/air excellence integration supporting the Navy's principal flight and ground test activity. With the addition of NAS Pax River, ASUS will be providing water and wastewater utility services at twelve military bases located within eight states.