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COMMERCE BUSINESS DAILY ISSUE OF FEBRUARY 10,1998 PSA#2029

U.S. Department of Transportation, Federal Railroad Administration, Office of Acquisition and Grants Services, Mail Stop 50, 400 7th Street, SW, Washington, DC 20590

M -- FACILITY CARE, CUSTODY AND CONTROL OF TRANSPORTATION TECHNOLOGY CENTER DUE 033198 POC Robert L. Carpenter, TEL: 202/632-3236; FAX: 202/632-3846 The Federal Railroad Administration (FRA) is seeking expressions of interest, comment and suggestions from potential sources interested in assuming the care, custody and control of management operations of the Transportation Technology Center (TTC) near Pueblo, Colorado, as of January 1, 1999. The TTC is unique in the world as a railroad research and test facility. It occupies approximately 52 square miles of land 25 miles northeast of Pueblo. The land is under long-term lease by the State of Colorado to the FRA. TTC buildings, and most other surface structures and equipment are owned by FRA. The TTC has been in operation since 1971 and it consists of over 315,000 square feet of test facilities and administrative office space. The TTC includes a HAZMAT demonstration and training facility, 48 miles of various test tracks (including a newly upgraded high-speed rail track), and a variety of special test equipment. The TTC is currently staffed by approximately 225 employees of Transportation Technology Center, Inc. (TTCI), a wholly owned, for-profit subsidiary of the Association of American Railroads (AAR), under a facility management contract with the FRA. FRA is exploring the feasibility of negotiating a new ten (10) year contract, effective January 1, 1999, through December 31, 2008, to replace the existing 10 year contract which started October 1, 1992. FRA is considering a new contract now in order to provide full and open competition with respect to the care, custody and control of the TTC following the AAR's restructuring and creation of TTCI, effective January 1, 1998. However, FRA reserves the right to leave the current contract in place until its expiration in 2002. FRA is also considering changing the name of the TTC facility to "Railroad Technology and Safety Institute (RTSI)," more appropriately reflecting the full body of the facility's mission of railroad technology and safety research, testing and evaluation, and safety training. As an adjunct to the current mission, RTSI would be expected to participate in cooperative education programs with American colleges and universities by hosting academic/work internships at RTSI, which would be funded by FRA. The terms of a new contract are expected to be similar to those now in effect whereby the contractor provides for the care, custody and control of the TTC, including maintenance in accordance with good commercial practices at no direct cost to FRA. The contractor is also responsible for performing a wide range of transportation research, development, and test projects for the FRA on a cost reimbursement basis. This is not the usual Government Owned-Contractor Operated (GO-CO) type contract. In consideration of its commitment for annual investment in TTC facilities, the contractor is permitted to perform revenue generating services for itself or third parties, including commercial clients, both foreign and domestic. FRA projects will be given priority scheduling whenever necessary and are to be accommodated at billing rates reflecting FRA's ownership of equipment at TTC. A key element of the contract is the contractor's assumption of the financial risk of operating, maintaining, and investing financial resources in the TTC. Currently, less than 20 percent of the annual business volume is funded by the FRA. Interested sources must submit a letter of interest accompanied by a comprehensive and fully descriptive statement of qualifications by close of business, March 31, 1998, to the point of contact address shown herein. Qualification statements should address the following areas: (1) experience in passenger and freight railroad research and development; (2) experience with and ability to interact with American freight, inter-city passenger, and commuter railroads; (3) experience in railroad operations and knowledge of American railroad operating practices, policies, and safety standards; (4) experience and ability to operate and manage a railroad HAZMAT training facility; (5) technical, financial, and organizational capacity and experience in operating facilities similar to the TTC; (6) ability to market the railroad technology and safety research, testing and evaluation, and safety training capabilities of the TTC to potential users; and (7) description of a prospective commitment to assume the TTC operations and maintenance, as well as a continued substantial level of investment in the improvement of TTC facilities without a guaranteed level of U.S. Government financial support. (0037)

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