Talisman Partners, Ltd., 5460 South Quebec St., Suite 100, Englewood, Co 80111-1916

S -- PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT KEESLER AFB, BILOXI, MS. DUE 080499 POC Scott Beckman or Joel Theis, 303/771-3103 E-MAIL: Email to POC, sbeckman@talpart.com. 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 Air Force is seeking interest and information specifically for the potential privatization of the electrical, natural gas, water distribution, and wastewater collection systems at Keesler AFB, Mississippi. This includes off-base sites at Camp Keller (excluding natural gas) and Thrower Park. OBJECTIVE: Should privatization result, the ownership of the Keesler AFB electrical, natural gas, water distribution, and wastewater collection 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 is provided only to give an approximation of the size, scope and general description of the system(s). Any numbers should only be used for estimating purposes. The following system parameters are approximations: The base size is about 1668 acres, Camp Keller (small arms range) covers 1886 acres. This includes 1370 buildings and 1953 family housing units. Electrical Distribution: 23 kV distribution system with 3 incoming feeds. One substation (1-5 MVA 23kV to 13.8 kV) serves the west family housing areas and one (2-7.5 MVA 23kV to 4.1 kV) serves the installation hospital. Peak demand is 32,997 kVA (89% power factor) and the annual consumption is approximately 165,950 MWh. Primary distribution system: 132.5 miles split evenly between overhead and underground. Secondary distribution system: 111 miles, 85% overhead and 15% underground. Approximately 3000 street and area lights. 20% residential, 80% commercial/industrial. Natural Gas Distribution: 386,000 LF of primarily steel pipe (90% steel, 10% PPE) ranging in size from 8" to 1". System is in good condition, roughly 90% of the pipe is over 40 years old. Gas is supplied at 125 psig and regulated (via 5 government owned regulators) to facilities at 25 psig. Annual consumption: 460,440 MCF. Nine government owned meter facilities. Water Distribution: Includes 12 wells (6 currently in service), and 6 elevated storage tanks with a capacity of 400,000 gallons each. Pumping capacities range from 500 to 1000 gpm, with pump motors ranging from 60 to 125 horsepower. 95 miles of 2" to 10" pipe, and additional small service lines. Average water use: 3 million gpd. Chlorination and fluoridation treatment are provided at the main base wells. Two independent systems provide irrigation water for the golf course. One is from a pond maintained by storm water runoff and base supply wells and the other is tied directly to the base waster distribution system. Small well and hydropneumatic tank serve the off-base Small Arms Range (Camp Keller). No treatment is provided at the Small Arms Range. Wastewater Collection: 445,400 LF of pipe and 10 lift stations containing a total of 20 pumps. System evenly split between gravity flow and force mains. Pipe sizes range from 4" to 24" and the materials are primarily cast iron and vitrified clay. Pipe ages range from 1 to 58 years. Main lift station received new pumps in March 1999 and the remainder have been replaced within the last 10 years. An 18" force main carries over 90% of the base effluent to the West Biloxi Treatment facility while the remainder from half of the Harrison Court Housing area is discharged to the Keegan Bayou Plant via a 6" gravity main. The average annual quantity of effluent from the base is 689 million gallons. 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) capability and experience in ownership, operation and maintenance of similar utility systems, (2) financial capacity to purchase, expand and operate the utility systems; (3) statement detailing the understanding of the obligation to serve in regards to continuous utility service; (4) statement detailing the legal right to serve, own, operate, and maintain utility systems within state laws and an understanding of any applicable federal, territorial and local utility laws, regulations or franchise requirements affecting utilities in the territory, and capability of complying with such requirements; and (5) statement detailing the understanding of federal, territorial, and local environmental laws and regulations and familiarity and experience with environmental compliance procedures and regulations for the State of Mississippi and the U. S.Environmental Protection Agency. 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 RFIs for different utility systems may be issued in the same time frame. A separate response to each RFI is required. The point of contact is Scott Beckman or Joel Theis, 303/771-3103. Posted 07/01/99 (W-SN349661). (0182)

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