Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF APRIL 16,1998 PSA#2075

Defense Energy Support Center, 8725 John J. Kingman Rd., Suite 4950, Ft Belvoir, VA 22060-6222

68 -- DIRECT SUPPLY NATURAL GAS; 91 -- BURNER OILS SOL SP0600-98-R-0029 DUE 051398 POC Rossell A. Beckett (703) 767-9519, Marlies Drechsel (703) 767-8538, P.Griffith (703) 767-9533 As a result of Government re-engineering initiatives identified by the Defense Reform Initiative Report and a mandate from the Office of the Secretary of Defense (OSD), Defense Reform Initiative Directive (DRID) # 21 was issued in January 1998. DRID # 21 directed that DESC develop plans to execute regional demonstrations of total energy management for presentation to the Under Secretary of Defense for Acquisition and Technology for Defense Management Council review by June 1, 1998. Pursuant to DRID # 21, Solicitation SP0600-98-R-0029, also know as Demo No. 1 (NE Demo) is for a supply management regional demonstration procurement of combined Natural Gas and Heating Oil requirements for various Army, Air Force, Navy, and Marine activities located within the states of Virginia and Maryland and the District of Columbia. DUAL FUEL REQUIREMENTS (Natural Gas or Burner Oil): Fuel Oil, Burner 2, NSN: 9140-00-247-4365, ASTM D 396 (Latest Revision), est. 21,206,000 U.S. Gallons (2,756,783 MMBtu); Fuel Oil, Burner 4, NSN: 9140-00-247-4360, ASTM D 396 (Latest Revision), est. 4,540,000 U.S. Gallons (624,613 MMBtu); Fuel Oil, Burner 5 (Light), NSN: 9140-01-058-4431, ASTM D 396 (Latest Revision), est. 16,700,000 U.S. Gallons (2,368,223 MMBtu) OR Direct Supply Pipeline Quality Natural Gas via limited interruptible transportation, NSN: 6830-01-318-5797, est. 14,255,004 MMBtu's FIRM FUEL REQUIREMENTS (Natural Gas and Burner Oil): Fuel Oil, Burner 2, NSN: 9140-00-247-4365, ASTM D 396 (Latest Revision), est. 13,542,000 U.S. Gallons (1,760,462 MMBtu); Fuel Oil, Burner 6, NSN: 9140-00-247-4354, ASTM D 396 (Latest Revision), est. 11,990,000 U.S. Gallons (1,726,795 MMBtu); AND Direct Supply Pipeline Quality Natural Gas via firm transportation, NSN: 6830-01-318-5797, est. 1,419,694 MMBtu's Contracts awarded as a result of this solicitation will be fixed price with economic price adjustment. The resultant contracts will also contain "triggering" terms for conversion to firm fixed price for natural gas under specific conditions. The contract period will be for 2 years (Delivery period: 01 Oct 1998 through 30 Sep 2000). The solicitation may be downloaded from the DESC website on 20 Apr 1998 at http://desc.dla.mil/main/a/gas/ngsol.htm. All responsible sources may submit a proposal which shall be considered. (0104)

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