DEPARTMENT Of ENERGY, SAVANNAH RIVER OPERATIONS OFFICE, OFFICE OF PROCUREMENT And CONTRACTOR HUMAN RESOURCES, P.O. BOX A, AIKEN, SOUTH CAROLINA, 29802

S -- PROCUREMENT OF ELECTRICAL AND STEAM REQUIREMENTS FOR THE SAVANNAH RIVER SITE SOL DE-RP09-95SR18531 POC CAROL R. ELLIOTT, Contract Specialist, (803) 725-2191, D.L. CAMPBELL, Contracting Officer, (803) 725-2846. Although based on the exception given at FAR 5.202(a)(5) notification is not required for a contract action to acquire utility services if only one source is available, in accordance with U.S. Department of Energy's policy of openness the following information is provided: U.S. Department of Energy, Savannah River Operations Office intends to award a sole-source utility contract to South Carolina Electric and Gas (SCE&G) to meet Savannah River Site's (SRS) electrical and steam requirements under the exception FAR 6.302-1, ''Only one responsible source and no other supplies or services will satisfy agency requirements.'' This acquisition will require the SCE&G to provide 80 megawatts of electrical demand capacity and an average of 148,000 lbs of steam per hour. Additionally, SCE&G will be responsible for all maintenance and any capital investment required on all equipment and/or facilities for a fixed facility use charge, which is subject to South Carolina Public Service Commission (SCPSC) review and approval. SRS is currently purchasing approximately two thirds of its electrical needs from SCE&G and producing both steam and the remaining one-third of its electricity by onsite operation of a 40 year old cogeneration facility. SRS intends to discontinue its operation of the onsite facility and purchase all its electrical and steam requirements from SCE&G. This acquisition will be a sole-source award to SCE&G in accordance with South Carolina's ''Territorial Assignment Act'' (S.C. Code Ann. Section 58-27-620) which provides electric suppliers with territorial rights/restrictions within assigned service areas. SCE&G is the electric supplier with territorial rights to SRS. Separate contracts for the acquisition of electricity and steam were considered and rejected for the following reasons: (1) SRS has an immediate need for an alternate source of steam when SRS stops operating its congeneration facility, (2) A market survey identified no viable commercial source for the acquisition of steam other than package boilers or a cogeneration facility operated by the electrical territorial provider, and (3) Several studies find that the most reliable and economical method of producing steam is through the use of a cogeneration facility which produces both electricity and steam. Concurrent with the utility contract for electricity and steam, SRS will negotiate a capital lease of the SRS cogeneration facility, transmission lines, and substations. SCE&G may use the facility for the purpose of producing electrical power to its electrical grid and steam to SRS facilities. The leased facilities will be under the total operating control of SCE&G for the purpose of commercial production of power and steam and SCE&G will be responsible for any costs, including capital investment, required to operate the cogeneration facility. Any parties interested in participating in the acquisition described above, must provide written notification of interest no later than 15 days from the publication of this synopsis. Notification of interest must include a statement of capabilities demonstrating the capability of fulfilling all of the requirements of this acquisition. Additionally, alternative suppliers must provide with the notification of interest, a representation that service can be provided in a manner that is not inconsistent with Section 8093 of Public Law 100-202 which requires that the purchase of electricity must not be inconsistent with state law (See as noted above, S.C. Code Ann. Section 58-27-620). The representation must be supported with appropriate legal and factual rationale. (0195)

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