AFFTC/PKAD Directorate of Contracting, 30 N Wolfe Ave, Edwards AFB, CA 93524-6351

S -- PRIVATIZATION OF THE EDWARDS AFB ELECTRICAL DISTRIBUTION SYSTEM SOL F04700-99-R-0011 POC Mike Keeling, Contract Specialist (805) 277-9119; John C. Lemacks, Contracting Officer (805) 277-9355 WEB: On-line Acquisition Solicitation Information System, http://afftc_pk.elan.af.mil/oasis/xindex.asp. E-MAIL: click e-mail link to contact the POC, mike.keeling@edex.edwards.af.mil. Sources are being sought for the privatization of the electrical distirbution system at the Air Force Flight Test Center, Edwards AFB CA. The privatization includes the transfer of ownership of the electrical distribution system from the Government to the Contractor, and contractor performed maintenance and operation of the system. The primary function of Edwards AFB is to perform aircraft testing and evaluation on its approximate 470 square miles of land. There are four main concentrations of facilities on the base, which are known as Main Base (including Family Housing), North Base, South Base, and the Air Force Research Laboratory. In addition, there are many single structures/facilities such as radar or camera sites spread throughout the outer areas which are served by the electrical distribution system. The system currently handles an approximate 42 mW demand placed on it and is thought to have the capability to handle twice this load. The system is served by 115 kV transmission lines from the electric utility provider (Southern California Edison) and dropped to a 34.5 kV for distribution throughout the base. There are thirteen 34.5/12.0 kV substations which further distribute the power to the facilities throughout the base. In addition, there is a single 34.5/4.16 kV and a single 34.5/4.8 kV substation. The system has over 500 miles of overhead primary and 300 miles of underground primary distribution at 4800, 12500 and 34500 volts. Presently, the system includes operation and maintenance of street lighting, security lighting, and traffic signals, maintenance of airfield lighting (6.6 amp constant current system) for 15,000 foot and 6,000 foot active runways with associated taxiways, visual approach slope indicating (PAPI) lights, overrun lights, threshold lights, distance and obstruction lights, rotating beacons, and windsock lighting. A SCADA system is operational to control and monitor the system. The system varies in age from the early 50's to a major renovation completed in 94. Some of the system is located in restricted areas of the base, thus requiring maintenance personnel to possess security clearances. Other duties to be performed are the maintenance of grounding, cathodic protection, and lighting protection systems. Anticipated term of the contract is 25 years, with a start date of 1 Jan 2000. The following conditions are present that indicate that the privatization of the system should be accomplished using sole source procedures with the utility provider for the Edwards AFB geographical area: (1) The public utility is a regulated enterprise, and as such has a public service obligation to provide utility service within its service territory, even after the expiration of the GSA Area wide contract; thus reliable service can be assured. (2) The policy per 10 USC Section 2688, Utility System Conveyance Authority, provides that transferring utility system ownership to the appropriate local utility or other qualified entity must result in reliable service. The policy also recognizes that state lawmay limit the sale of a utility system to the regulated utility holding the local franchise; (3)SCE is a public utility that is subject to economic and service regulation by the California Public Utility Commission (CPUC). Privately-owned electric utilities in California must obtain a certificate of public convenience and necessity (CPCN) in order to provide a public utility service. Edwards AFB is within SCE's exclusive certificated service territory for electric service. There are no other public utilities providing retail or wholesale electric utility service within the general vicinity of Edwards AFB. (4) Edwards AFB is an area with a mix of exclusive and concurrent jurisdiction. State laws and CPUC regulation affecting the provision of utility service fully apply within areas of concurrent jurisdiction and the CPUC's economic and reliability regulation of SCE applies to all service provided under CPUC-authorized tariff rates and special contract terms. (5) SCE owns the electric distribution facilities that connect EAFB with the interstate electric supply and transmission system. Only SCE can provide all elements of Edwards AFB's comprehensive utility service requirement, which includes access to power generation resources and the transmission and distribution of electrical energy to and within Edwards AFB. (6) Because only SCE owns and operates electric distribution facilities into and adjacent to Edwards AFB, only SCE has the ability to integrate on and off-Base facilities. There are cost and reliability benefits associated with system integration. Connecting a building or area to nearby SCE facilities can avoid the need for costly upgrades or extensions of the on-Base system. In addition, shorter circuit runs provide for enhanced reliability, better voltage regulation and improved service quality. (7) Economic Considerations: Any competitor for this Government requirement would have to prove to be the best value to the Government. The following items are contributors to that best value decision made by the Government: (a) Southern California Edison is the exclusive provider of electric utility service to EAFB. This service is currently provided pursuant to a mix of standard (tariff) rates and special contract rates. The collective impact of special contracts has been to reduce EAFB's purchased power cost from $19.3 million per year ($0.088 per kWh) to $9.7 million per year ($0.044 per kWh). The special service contracts, are as follows: Power Displacement Agreement (or PDA), which provides for the no-cost delivery of the Base's Western Area Power Administration hydropower allocation; Added Facilities Agreements, which enabled the Base to shift revenue metering at the South Base and Rocket Test Substations from primary to subtransmission service rates; Special Facilities Agreement, which provided for a no-cost expansion of the Base's electric distribution system to improve service reliability and accommodate electric power load growth in the South Base area. The SIC Code is 4911. Size standard is 4 mW. In order for the Government to ascertain the sole source or competitive nature of this acquisition all interested offerors are requested to provide the following information: (1) technical/past performance qualifications relative to the stated effort; (2) proof of required permits, certifications, and licenses, if any to own, operate, and maintain the Edwards AFB CA electrical distribution system; (3) non-detailed pricing information or economic analysis that addresses the aforementioned economic considerations of the Government so as to show that your firm and its approach is of best value to the Government; (4) evidence of compliance with State of California General Order 95 and 128 standards for electric distribution; (5) Regulatory authority to own, operate and maintain an electric distribution system in California including Certificate of Public Convenience and Necessity or other relevant regulatory authority; (6) Franchised service territory jurisdiction for the provision of electric distribution services; (7)evidence of ability to comply with SCE's Rule 18 requirements regarding sub-metering and reselling of electricity; and (8) evidence of ability to deliver electric distribution service at a cost consistent with or superior to service provided by SCE's Rule 2h, Added Facilities inclusive of the current Power Displacement Agreement. Interested offerors are required to provide the above information to this activity by 25 Mar 99. Telephone requests to be placed on the mailing list will not be honored. See Numbered Note 22. Posted 02/04/99 (W-SN295262). (0035)

Loren Data Corp. http://www.ld.com (SYN# 0127 19990208\S-0010.SOL)