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COMMERCE BUSINESS DAILY ISSUE OF MARCH 11,1999 PSA#2300

Directorate of Contracting, US Army Garrison, Hawaii, Attn: APVG-GKC, Fort Shafter, HI 96858-5025

S -- PRIVATIZATION OF U.S. ARMY OWNED WATER DISTRIBUTION SYSTEM AT POHAKULOA TRAINING AREA(PTA) AND KILAUEA MILITARY CAMP(KMC), ISLAND OF HAWAII, STATE OF HAWAII DUE 040799 POC Mr. Steven Umeda, (808)438-6535, x186, Contract Specialist The Army seeks to identify responsible sources in regards to the privatization of the U.S. Army-owned water distribution system at PTA and KMC located on the Island of Hawaii, State of Hawaii. The resulting privatization will include purchase, ownership, maintenance and operation of the entire water production, treatment and distribution systems (this includes all water services to the building 5 foot line) at PTA and KMC. Should privatization result, the ownership of the entire utility plant and/or distribution system, including all operating responsibility shall transfer to a regional or municipal utility or to a private company. All responsibility for maintaining reliable service, including such items as environmental compliance, maintenance costs, major systems renovations, construction, equipment, manpower, and overhead costs shall become the utility provider's responsibility. The following is provided only to give an approximation of the size and general description of the system. Any numbers mayonly be estimates for this purpose. The water system at PTA is gravity fed system that consists of three each 425,000 gallon raw water storage tanks, three each 10,000 gallon potable water tanks, hypochlorinator, fire hydrants, slow sand filter, transfer pump, distribution piping, and a circulation pump. There is spring water source located on state of Hawaii land at the 10,000-foot level of the adjacent slope of Mauna Kea. Water is transferred via two each 2 inch galvanized steel pipes located on state of Hawaii land but are to be maintained and owned by the contractor. Water is first distributed to tanks owned by the state of Hawaii and then to the tanks at PTA. There is a sharing arrangement with the state of Hawaii for use of the spring water as follows: 1) First 8 kgals per day to the state of Hawaii. 2) Next 6 kgals to PTA. 3) Next 6 kgals is equally split between the state of Hawaii and PTA. 4) Anything after that is split until state of Hawaii tanks is full. The remainder goes to PTA. For the last two years the spring water supply has not been adequate and water is hauled in from Waimea, island of Hawaii. Consumption varies from 4,000 to 65,000 gallons per day, depending on troop presence. Average annual consumption is 10,000 kgals. The water system at KMC is a rain catchment system. It consists of one water catchment rainshed, multiple roof catchments within the camp, filters, limestone contactor, 19 storage tanks, circulation pumps, fire hydrants, distribution piping and a gas chlorination system. Storage capacity for treated water is 240 kgals. Storage capacity for untreated water is 3,400 kgals. Average water consumption is 24,300 gallons per day. During period of drought water must be hauled. This request for information is a required component of a complete and systematic process to evaluate interested parties under the Department of Army's privatization program. In order to minimize costs both to potentially interested parties and the government this notice is being issued to determine the interest and feasibility of proceeding with formal request for proposals. Should insufficient credible interest be identified for a privatization action, it is likely that no formal solicitation will be issued. SHOULD INTEREST BE DETERMINED SUFFICIENT, A FORMAL REQUEST FOR PROPOSALS MAY BE FORTHCOMING. Interested parties should address as a minimum the following criteria: (1) capability and experience in the ownership operation and maintenance of similar systems; (2) financial capacity to purchase, expand, and operate a utility system; (3) a statement showing its understanding of an obligation to provide continuous utility service; (4) understanding of any applicable state or local utility law or franchise requirements, and capability of complying with such requirements; (5) understanding of the federal, state and local environmental laws and regulations and its familiarity and experience with environmental compliance procedures and regulations for the state of Hawaii and US Environmental Protection Agency, Region 9. The Government does not intend to issue a conveyance document on the basis of this announcement or otherwise pay for the information solicited. Interested parties should submit their response no later than April 7, 1999 to the Directorate of Contracting, ATTN: APVG-GKB, Mr. Steven Umeda or Ms. Connie Tom, Building 520, Basement Level, Pierce Street, Fort Shafter, Hawaii 96858-5025. Posted 03/09/99 (W-SN306471). (0068)

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