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COMMERCE BUSINESS DAILY ISSUE OF JUNE 18,1998 PSA#2119

DA, DIRECTORATE OF CONTRACTING, FORT DRUM, NY 13602-5220

S -- PRIVATIZATION OF THE NATURAL GAS DISTRIBUTION SYSTEM AT FORT DRUM, NY SOL DAKF36-98-R-0008 DUE 062698 POC Contract Specialist RONALD C. JOHNSON (315) 772-6514 Contracting Officer Sandra A. Brown (315) 772-6514 (Site Code DAKF36) This is not a request for proposal. This is a potential sources sought announcement seeking companies with the technical and financial capability to operate and maintain the Fort Drum natural gas distribution system, including a major expansion of the system to support 84 facilities. This requirement will not include any purchase of natural gas. Fort Drum currently purchases gas and its transportation to the Niagara Mohawk Power Corporation's (NIMO) City Gate from TEXACO. NIMO, in turn, delivers it to the installation through its distribution system. Fort Drum is located in Northern New York, approximately 10 miles northeast of Watertown, NY. The installation has roughly 200 administrative buildings and 2,200 sets of family quarters with an estimated day time population of 17,000. The on- post gas distribution system services 1,472 facilities and consists of approximately 291,988 linear feet of piping of various sizes, from 1 inch to 12 inches. Privatization is the process by which the Government sellsits gas distribution infrastructure to a private entity and then contracts with that entity for service. The Fort Drum effort is anticipated to involve the transfer of ownership and the construction of the system expansion. The maintenance and operation of the system as a commercial natural gas system will be for a period of 10 years. All respondents should provide documentation to demonstrate they have the capability to provide the services at Fort Drum, NY, to include the following: (1) technical and management expertise/knowledge; (2) any recent and/or current experience in the operation and maintenance of a system similar to the Fort Drum system; (3) financial capability to present a financial bond market plan to be amortized for the 10 year contract period for the buy out of the current system and the planned major expansion. Respondents are required to furnish their documentation to the Fort Drum Directorate of Contracting no later that 26 June 1998. (0167)

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