CH2M Hill, Inc., 613 NW Loop 410, Suite 200, San Antonio, TX 78216

E -- PRIVATIZATION OF UTILITY SYSTEMS AT LITTLE ROCK AIR FORCE BASE, ARKANSAS DUE 071699 POC For the U.S. Air Force: CH2M HILL, 613, NW Loop 410, Suite 200, San Antonio, TX 78216 POC: Laura Hein(lhein@ch2m.com), Tel (210)377-3081 PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT LITTLE ROCK AIR FORCE BASE, ARKANSAS, SOL: N/A, DUE: 071699 POTENTIAL SOURCES SOUGHT PURPOSE: The Air Force seeks to identify responsible potential sources and obtain information in regards to privatization of utility systems in accordance with 10 USC 2688, "Utility Systems: Conveyance Authority". The Commander of Little Rock Air Force Base is seeking interest and information specifically for the potential privatization of the wastewater, natural gas, and electrical utility systems at Little Rock Air Force Base, Arkansas. OBJECTIVE: Should privatization result, the ownership of Little Rock Air Force Base's wastewater, natural gas, and electrical utility systems, operation and maintenance and obligation to continue to provide utility service for an indefinite and ongoing period will transfer to a utility service provider. All responsibility for maintaining reliable utility service, including such items as environmental compliance,maintenance costs, major system renovations, construction, equipment, manpower and overhead costs will become the utility service provider's responsibility. It is intended that the privatization will ultimately reduce the Air Force's life-cycle costs for operating and maintaining utility systems and services. SYSTEM DESCRIPTIONS: The following information provided is only an estimate and is subject to change. Little Rock AFB occupies 6,128 acres and is located approximately 17 miles northeast of Little Rock on Highway 67/167. There are 1,643 facilities on Little Rock AFB. The base population is comprised of more than 19,000 people, most of which are the military that work on base and their dependents. Sanitary Sewer The sanitary sewer collection system consists of approximately 57 miles of collection piping, 95 percent of which consists of concrete gravity piping, and remainder being PVC, VCP and CI piping. There are approximately 600 manholes. The base has 12 lift stations it maintains which pumps into approximately 9.5 miles of force main. Flows from the sanitary collection system are pumped to the City of Jacksonville, Arkansas for treatment. The flow is metered at one central location. Natural Gas The natural gas distribution system consists of approximately 20 miles of distribution piping. There are approximately 14 miles of steel pipe and 6 miles of PE pipe. Natural gas is delivered to the base through an 8-inch main at 30 psig. Natural gas consumption is approximately 240 million cubic feet annually with a peak day demand of 2.4 million cubic feet. Electrical -- The primary power enters the facility from the south in the area of the main gate. The 13.8/7.97 kV Y service to the main switching station provides electricity to four (predominately overhead) distribution feeders through distribution circuit reclosers located at the main switching station. All feeders on base are phased with numerous air break switches providing flexibility in switching. There is approximately 327 miles of electric distribution line and the peak demand is 17,000 to 19,000 kW. Street lighting is provided along the primary roads with pole mounted lights. PROCEDURES: This request to interested parties is for gathering information and is a required component of a systematic process to evaluate the interested parties under the Air Force's utilities 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 a formal request for proposals. Should insufficient credible interest be identified for a privatization action, it is highly likely that no formal solicitation will be issued. SHOULD INTEREST BE DETERMINED SUFFICIENT, A FORMAL REQUEST FOR PROPOSALS MAY BE FORTHCOMING. Small Business interests shall note the FAR Part 19 Standard Industrial Codes (SIC) and Size Standards for the utility systems identified in this announcement. Some, all, or any combination of the following may apply. SIC/SS: 4911/4Million (M) Megawatt hours, 4922/$5M, 4923/$5M, 4924/500, 4925/$5M, 4931/$5M, 4932/$5M, 4939/$5M, 4941/$5M, 4952/$5M, 4953/$6M, 4959/$5M, 4961/$9M, 4971/$5M. REQUESTED RESPONSE: Interested parties should provide a statement of interest on company letterhead (not to exceed 20 pages in length). The statement should include as a minimum the following criteria: (1) specific utility system(s) of interest and desired bundling/grouping of utilities to purchase; (2) capability and experience in ownership, operation and maintenance of similar utility systems; (3) financial capacity to purchase, expand and operate the utility systems; (4) statement detailing the understanding of the obligation to serve in regards to continuous utility service; (5) conceptual rate plan (excluding numerical analysis or proposed rates), i.e. will charges for utility service be made from existing rates or from rates developed specifically for service at the individual base(s); (6) ideas regarding conjunctive metering and billing for service on base (excluding numerical analysis or proposed rates); (7) discussion of your conceptual basis (excluding numerical analysis or proposed price) for a proposed purchase price (capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, or other); (8) statement detailing your understanding of applicable state and local utility laws and your compliance capability; (9) statement detailing your understanding of any existing franchises and your ability to provide service given these conditions; (10) statement detailing your understanding of federal, territorial, and local environmental laws and regulations and familiarity and experience with environmental compliance procedures and regulations for the Arkansas and the U. S. Environmental Protection Agency; and (11) business size (large, small, small-disadvantaged; 8(a); women-owned). Elaborate proposals or pricing information is neither required nor desired. Under no circumstances will cost data for the existing systems be provided. Any innovative and new conceptual ideas to achieve the stated objective are encouraged. If a site visit and the provision of additional data are later determined necessary, notification will be provided by way of an amendment to this announcement. It should be noted that the RFIs for different Air Force Bases and utility systems may be issued in the same time frame. A separate response to each RFI is required. Please respond electronically as well as with hard copy. The point of contact is Laura Hein(lhein@ch2m.com), Tel (210)377-3081. Posted 06/03/99 (W-SN338579). (0154)

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