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COMMERCE BUSINESS DAILY ISSUE OF JUNE 7,1999 PSA#2361

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

S -- SOURCES SOUGHT FOR PRIVATIZATION OF UNITED STATES ARMY ELECTRICAL, NATURAL GAS, POTABLE WATER AND WASTEWATER UTILITY SYSTEMS FOR THE UNITED STATES ARMY WAR COLLEGE, CARLISLE BARRACKS, PENNSYLVANIA 17013-5000 POC Ms. Christy Chamblin, Contract Specialist, (703) 767-9652; or Ms. Elizabeth Pesenti, Contracting Officer, (703)767-8130 WEB: For Privatization Solicitation Information, http://www.desc.dla.mil/main/a/electric/priv.htm. E-MAIL: For Additional Information or Clarification, cchamblin@desc.dla.mil or epesenti@desc.dla.mil. The Defense Energy Support Center (DESC), in conjunction with the US Army Assistant Chief of Staff for Installation Management (ACSIM) and the United States Training and Doctrine Command, 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" for the United States Army War College located in Carlisle Barracks, Pennsylvania. The potential privatization actions will include transfer of ownership, operation and maintenance, and the obligation to serve. The Army intends to retain ownership of all land and will grant easements and leases for access to land associated with each utility system. OBJECTIVE: Should privatization occur, the ownership of the entire Electrical, Natural Gas, Water and Wastewater distribution systems, utility plants, and equipment to include, all capital investments, operation, maintenance and repair responsibilities, shall transfer to a publicly or privately owned utility provider. All responsibility for maintaining reliable service, including such items as environmental compliance, operation, maintenance, major systems renovation, construction, equipment, manpower and overhead shall be the responsibility of the utility provider. INSTALLATION AND UTILITY SYSTEMS DESCRIPTIONS: Location: United States Army War College, Carlisle Barracks, Pennsylvania 17013-5000. Description of Facilities: The United States Army War College, Located in Carlisle Barracks, Pennsylvania 17013-5000 consists of the following utility distribution and collection systems: a. ELECTRICAL DISTRIBUTION SYSTEM: -- The Carlisle Barracks military base is divided into three sections; 1) the main cantonment area and facilities, 2) the Stanwix Apartments offpost housing area and facilities, and 3) the Post golf course and club house. -- The Electrical Substation is owned and operated by the U. S. Army. The substation contains two 5 MVA power transformers (69 kV to 12.47 / 7.2 kV) and is energized by two, overhead 69 kV three phase feeders from the Philadelphia Power and Light Company. -- The low side portion of the substation contains a lineup of Westinghouse 15 kV rated metalclad switchgear containing two incoming 15 kV Circuit Breakers (1200 amp rated) and a 1200 amp rated bus-tie breaker. The 12.47 kV double bus arrangement contains four feeder bays in-service (300 amp rated) and two spare units. -- The distribution system that originates in the main substation contains two basic feeders, Loop A, which feeds the northern portion of the Cantonment area and a portion of the central area and Loop B, which feeds the southern portion of the Cantonment and a portion of the central area. Practically all of the distribution system is underground cable feeders and padmounted transformers and switches (circa 1970s). The conductor sizes of the main loops are #4/0 AWG, 15 kV shielded with a #4/0 600 volt neutral. The two underground distribution loops are tied together with a loop tie circuit and disconnect switches. The remainder of the network, secondary loops and lateral feeds, are small conductor (i.e., less than #4/0 AWG). There are two small segments of overhead feeder circuits on the main cantonment. These are 12.47 / 7.2 kV primary feeders with small conductors that feed residential areas. -- The Post is lighted by a series of street lights and area lights. A number of the streetlights are ornamental, in keeping with the historical nature of the military reservation. The street lights and area light circuits are independent to some degree from the primary distribution system. The Army may choose to exclude street from the privatization project. -- The Army owns the electric service facilities of the Stanwix Apartment complex in the Borough of Carlisle, PA. The housing units are located about one mile NW of the main gate. The area is served from a metered tap from PP&L at 12.47 / 7.2 kV. The type of construction is similar to those facilities on the main cantonment. The DPW operates and maintains the distribution system within the boundary of Stanwix Apartments. -- The Carlisle Barracks golf course is located outside the main cantonment, east of Claremont Road. Electrical power to the clubhouse and service areas is provided by a PP&L metered 12.47/ 7.2 kV overhead service tap. b. NATURAL GAS DISTRIBUTION SYSTEM: -- The natural gas distribution is very new, having been completely upgraded as two projects. One project completed in 1992 comprises about two-thirds of the northern portion, College Arms/Marshall Ridge (CA/MR) area, of the post and was completed in 1992. The southern one-third, S-Loop, was completed in 1996. -- Both upgrades were completed to UGI construction specifications. Polyethylene pipe was installed as well as anodeless risers. UGI supplies gas at a pressure of 60 psi where it is reduced by UGI regulators to the distribution system pressure of 14-16 psig. -- The northern natural gas distribution system consists of about 17,200 feet of main supply piping, 1 distribution valve and 149 building services. The southern portion has about 6,600 feet of main supply piping, 17 distribution valves and 31 building services. The pipe sizes in both areas are from less than 1 inch to 6 inches in diameter. c. POTABLE WATER DISTRIBUTION SYSTEM: -- Raw Water Supply and Treatment. The system's sole supply source consists of a natural spring, referred to as CU-SP-19, and located under the Water Treatment Plant (WTP). -- The spring is rated at 2.5 million gallons per day. Normal water usage for the installation ranges from 250,000 to 280,000 gallons per day. -- An interconnection with the Borough of Carlisle water distribution system serves as the emergency source. -- Water Storage: Treated water is stored in two elevated storage tanks, with capacities of 100,000 and 200,000 gallons. -- Distribution System: The distribution system has approximately 41,100 linear feet of transmission mains and lateral lines. Mains are comprised of sizes from two to twelve inches in diameter and various types of material. The original piping was ductile iron, however, PVC has been used for replacement piping. Smaller line sizes, two inches and smaller, supply individual structures from the lateral lines. The system includes main valves, post indicator valves, fire hydrants and elevated storage facilities. -- The golf course now uses potable water for irrigation, however, plans are being developed to dig wells for the golf course irrigation supply. d. WASTEWATER COLLECTION SYSTEM: -- Collection System: Wastewater from the Carlisle Barracks collection system is delivered into a sewer main owned and maintained by the Borough of Carlisle. -- The Borough's main runs through Carlisle Barracks, on the western half of the installation. Carlisle Barracks pays a fixed monthly fee to the Borough for wastewater service. -- The collection system is comprised of terra cotta, concrete, cast iron, concrete and polyvinyl chloride pipe in various diameters from four inch to fifteen inch. The major collection pipe is eight inches in diameter. Some of the mains have been sliplined or insituformed. -- Lift Stations: There are nine sewage lift stations within the wastewater collection system of Carlisle Barracks. Three of the lift stations, at Buildings 253, 257 and 870, are located inside the building and, therefore, are not included in the draft inventory. Should the wastewater system be privatized, the purchasing utility would be reluctant to take ownership of these facilities due to access, safety and liability concerns. The lift stations which are isolated from other buildings or which have outside entrances to the pumping equipment have been included and would be privatized with the wastewater system. PROCESS: This request is to gather information from interested parties and is an essential step in determining market interest for the privatization of the utility systems at the affected installations. In order to minimize costs both to potentially interested parties and the government, this notice is issued to determine market interest and feasibility as well as determining marketing strategies for privatizing utility systems. Interested parties should provide a statement of interest on company letterhead. The statement of interest must not exceed a total length of 15 pages plus 1 page per type of utility system of interest. Parties may express interest in a range of ownership possibilities, from a single utility system to interest in all utilities systems. The statement shall include as a minimum, the following information: (1) capability and experience in the ownership, operation and maintenance of similar systems; (2) financial capability to purchase, upgrade, expand, operate and maintain utility systems; (3) specific utility system(s) of interest and desired bundling of utilities systems to purchase; (4) conceptual rate plan (i.e., will charges for utility service be made from existing rates or from rates developed specifically for service at the individual installation(s); (5) discussion of your conceptual basis for a proposed purchase price (capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, or other); (6) understanding of any applicable state or local utility laws or franchise requirements, and capability of complying with such requirements; (7) understanding of the federal, state and local environmental laws and regulations and familiarity and experience with environmental compliance procedures and regulations for the applicable states and US Environmental Protection Agency Regions; (8) Business size: Large, Small, Small Disadvantaged Business or 8(a). SITE VISIT AND DATA: Neither a site visit nor the provision of additional data on the utility systems is considered necessary for the preparation and submittal of statement of interest. 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. DUE DATE: Statements of interest must be submitted to Defense Energy Support Center (DESC-APP) by 06 July 1999 by 3:00 p.m. Eastern Standard Time. Sources may respond by mail to Defense Energy Support Center, 8725 John J. Kingman Road, Suite 4950, ATTN: C. Chamblin, DESC-APP, Room 3838, Fort Belvoir, VA 22060-6222. Posted 06/03/99 (W-SN338719). (0154)

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