SRCSGT | S | SOURCES SOUGHT FOR PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS CONVEYANCE AUTHORITY OF ELECTRIC DISTRIBUTION UTILITY SYTEMS AT THE ABERDEEN AND EDGEWOOD AREAS OF THE US ARMY GARRISON, ABERDEEN PROVING GROUND, MARYLAND.

FBO DAILY ISSUE OF MARCH 12, 2003 FBO #0467
SOURCES SOUGHT

S -- SOURCES SOUGHT FOR PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS CONVEYANCE AUTHORITY OF ELECTRIC DISTRIBUTION UTILITY SYTEMS AT THE ABERDEEN AND EDGEWOOD AREAS OF THE US ARMY GARRISON, ABERDEEN PROVING GROUND, MARYLAND.

Notice Date: 3/10/2003
Notice Type: Sources Sought
Contracting Office: ACA, Aberdeen Proving Ground, Directorate of Contracting, 4118 Susquehanna Avenue, Aberdeen Proving Ground, MD 21005-3013
ZIP Code: 21005-3013
Solicitation Number: DABJ05 - 10APRIL2003 - TO BE DETERMINED
Response Due: 4/14/2003
Archive Date: 6/13/2003
Point of Contact: John F. Kimball, Jr., 410-278-2373
E-Mail Address: ACA, Aberdeen Proving Ground
(fil.kimball@us.army.mil)
Small Business Set-Aside: N/A
Description: NA The Government seeks to identify responsible potential sources and obtain information in regards to the privatization of the electric distribution utility systems at the Aberdeen Area (EA) and Edgewood Area (EA) of the U.S. Army Garrison Aberdeen Proving G round (APG), in accordance with 10 USC 2688, “Utility Systems: Conveyance Authority.” Privatization is defined as the “transfer of ownership, operation and maintenance, and obligation to serve” responsibilities. These include such items as environmental compliance, maintenance costs, major system renovations and upgrades, construction, equ ipment and manpower, of Government-owned systems to a municipal, private, regional, district, or cooperative utility company or to another entity. The APG is located about 35 miles northeast of Baltimore on two adjacent tracts extending along and into the Chesapeake Bay. The AA contains about 72,000 acres and the EA contains about 69,000 acres. The Installation is predominantly, but not totally, an area of exclusive Federal jurisdiction (also referred to as a Federal “enclave”). Upstream electric utility delivery service to the APG is provided by Baltimore Gas and Electric Company (BGE) in accordance with standard commercial service tariff rates fo r transmission voltage (115 kV) service. Power is delivered separately to the EA and AA distribution systems, which are not interconnected. The electric utility system historically contained distinct transmission and distribution components. The distribution components are within the APG and are exclusively used to serve APG and tenant service locations. The transmission components are locat ed both within and outside of the Installation and were used to provide service to the APG as well as other, non-Government entities. The transmission system included 115 kV power lines and a 115/34.5 kV substation that served the EA. Pursuant to the ter ms of a 1950 contract, the transmission facilities were operated and maintained by BGE and at BGE’s expense, and were used to provide service to APG as well as communities served by BGE outside of the Installation. The 1950 contract was recently amended t o provide for the construction of a new, BGE-owned 115/34.5 kV substation and to obligate BGE to continue to provide service under transmission voltage rates but to meter power deliveries to the substation after transformation losses were incurred. The amended contract includes termination provisions if ownership of the internal EA or AA distribution systems is transferred to an entity other than BGE. Under these provisions, the distribution systems will be served under BGE’s primary voltage (34.5 k V) standard tariff rates. Service under these rates will increase the Installation’s electric power delivery costs by more than $1.0 million a year. The amendment also included substantial termination provisions if ownership of the transmission system is transferred to an entity other than BGE. The Installation is in the process of privatizing the transmission system to BGE. This system therefore is NOT included in the scope of this request for information (RFI). The AA electric distribution system contains about 150 circuit miles of primary feeders, about 80 percent of which are overhead and 20 percent of which are underground. It also contains two 34.5 kV circuits that step down to about forty 13.2 kV, 4.6 kV an d 2.4 kV feeder circuits. The system also contains 20 substations, 3,100 street light fixtures, 1,650 service connections, 1,900 pole and pad-mount transformers. The EA electric distribution system contains a 34.5 kV backbone loop that supplies power to 17 distribution substations that step power down to 13.2 kV, 4.16 kV and 2.4 kV feeder circuits. The system also constrains about 125 miles of overhead lines, five miles of underground line, 1,200 pole and pad-mount transformers, 2,300 street light fixtu res and 1,650 service connections. The related specific elements of the privatized electric distribution utility service requirement include: (1) service to all areas within the AA and EA; and (2) preservation of the beneficial service and rate provisions of the 1950 Contract, as amended. In accordance with Section IV.A.2 of the Department of Defense’s 9 October 2002 Revised Guidance for the Utilities Privatization Program, it is anticipated that the source selection process shall consider “possible long-term costs and benefits to the Unite d States, if the conveyance (of the electric distribution system) affects separate contract relationships, particularly for commodities.” It is further anticipated that the incremental cost of upstream BGE delivery service to the EA and AA under primary r ather than transmission voltage rates will be added to the proposed privatized service life cycle cost of any offeror other than BGE. This added cost is expected to exceed a base year value of $1.0 million and appropriate inflation adjustments will be app lied to escalate the base year over the proposed 50-year term of any privatized service contract. This RFI is a component of a systematic process to implement the Department of the Army’s utility privatization program. If responsive statements of interest are received, a follow-on element of the process may be an industry forum to be held at the Aberd een Proving Ground. The forum would be scheduled within two to four weeks from the receipt of expressions of interest to this notice. Depending on the level of interest, the forum would consist of sequential meetings with either (1) each respondent, or ( 2) a group or subgroup of respondents, or a (3) combination thereof. If an industry forum is determined necessary, notification will be provided by way of an amendment to this advertisement. It is anticipated that any proposal received in response to an RFP will require a certification of an offeror’s legal right to provide all elements of the required service and capability to initiate the service within a reasonable time (e.g., 30 to 60 days) after contract award. The statement of interest submitted by the offeror shall address, as a minimum, all of the following general criteria: (1) capability and experience in the ownership, operation, expansion and maintenance of similar systems; (2) financial capacity to purch ase, expand, maintain, and operate a utility system; (3) a statement expressing a willingness and understanding of an obligation to provide continuous utility service; (4) understanding of any applicable state or local utility law or franchise requirements , capability of complying with such requirements, and representation of the legal right to provide the applicable service upon contract award; and (5) understanding of the federal, state, and local environmental laws and regulations, and familiarity and ex perience with environmental compliance procedures and regulations. The statement of interest MUST also address the capability and legal right to provide each of the specific privatized utility service requirements. To the extent a capability or legal right would involve the cooperation or involvement of a third party, th e basis for such involvement shall be described and assurances that the cooperation or involvement would be forthcoming shall be provided. A statement of interest shall not exceed 20 pages in length. Interested parties shall refer questions to Mr. John F. Kimball, Jr., at fil.kimball@us.army.mil or call (410) 278-2373. Send statements of interest to Department of the Army, Army Contracting Agency, APG Directorate of Contracting, ATTN: SFCA-NR-APC-F, F acilities Branch, 4118 Susquehanna Blvd., Aberdeen Proving Ground, Maryland 21005-3013 no later than noon (12:00 p.m.) local Maryland time, Monday, April 14, 2003.
Web Link: Link to FedBizOpps document.
(http://www.eps.gov/spg/USA/DABJ/DABJ05/DABJ05 - 10APRIL2003 - TO BE DETERMINED/listing.html)
Place of Performance: Address: ACA, Aberdeen Proving Ground Directorate of Contracting, 4118 Susquehanna Avenue Aberdeen Proving Ground MD; Zip Code: 21005-3013; Country: US
Record: SN00276247-F 20030312/030310221358 (fbodaily.com)
Source: FedBizOpps.gov Link to This Notice
(may not be valid after Archive Date)

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S -- SOURCES SOUGHT FOR PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS CONVEYANCE AUTHORITY OF ELECTRIC DISTRIBUTION UTILITY SYTEMS AT THE ABERDEEN AND EDGEWOOD AREAS OF THE US ARMY GARRISON, ABERDEEN PROVING GROUND, MARYLAND.