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

Y -- PRIVATIZATION OF UTILITY SYSTEMS FOR ARNOLD AIR FORCE BASE, TENNESSEE DUE 082499 POC For the U.S. Air Force: CH2M HILL, 613, NW Loop 410, Suite 200, San Antonio, TX 78216 POC: Terry Schaumberg(tschaumb@ch2m.com), Tel (210)377-3081 E-MAIL: Terry Schaumberg, tschaumb@ch2m.com. PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT ARNOLD AIR FORCE BASE, TENNESSEE, SOL: N/A, DUE: 082499 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 Air Force is seeking interest and information specifically for the potential privatization of the electric, natural gas, water, wastewater, industrial cooling water, and heating plant utility systems at Arnold Air Force Base, Tennessee. OBJECTIVE: Should privatization result, the ownership of Arnold Air Force Base's electric, natural gas, water, wastewater, industrial cooling water, and heating plant 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. GENERAL BASE DESCRIPTION: Arnold AFB is located in middle Tennessee, just off of Interstate 24 and halfway between Nashville and Chattanooga. The base covers approximately 40,000 acres, straddling Coffee and Franklin counties and situated in the tri-city triangle composed of Tullahoma, Manchester, and Winchester. Arnold's primary mission is the Arnold Engineering Development Center (AEDC), which supports the development of aerospace systems by testing hardware in facilities that simulate flight conditions. This heavy industrial center operates aerodynamic and propulsion wind tunnels, rocket motor and turbine engine test cells, space environmental chambers, arc heaters, ballistic ranges and other specialized units. There are approximately 300 facilities on Arnold AFB, most located in the AEDC industrial area supporting the industrial mission. Arnold Village is a small, 40-unit military family housing complex, VOQ, recreation area, conference/leadership facility, club, and golf course located at the Woods Reservoir. Key to successful test operations is timely, accurate delivery of utility services. Utility operation is fully integrated in plant management through a single Tactical Integration Group (TIG) in the AEDC operations center. Utility operators are envisioned to be full-time, on-site partners in the TIG. Test operations fluctuate daily, even hourly, with a high percentage of schedule change occurring. Maintenance and Repair (M&R) requires close coordination with operations to ensure availability and safety. Ultimately, utility service delivery may notbe allowed to negatively impact test scheduling and test operation. Electric System -- Electricity is provided to the base by the Tennessee Valley Authority (TVA) via two 161 kV circuits from TVA's Franklin Substation. The primary power at 161 kV enters the base from the southwest. It terminates at the dead-end structure, which is located in the government-owned 161 kV switching station. The main switching station is constructed in a main and transfer scheme consisting of four oil-filled and nine SF6-filled 161 kV power circuit breakers. The main switching station provides power to two 161-13.8 kV TCUL power transformers which in turn each feed a 15 kV class metal enclosed switchgear utilizing vacuum breakers. The 13.8 kV 3-wire service from the metal enclosed switchgear provides electricity to ten (predominately overhead construction) distribution circuits feeding mainly facility power to the site, including five 13.8 kV breakers (123,946 feet of overhead and 127,304 feet of underground wire service). Inaddition to the 13.8 kV circuits, there are twelve 161 kV oil insulated underground circuits from the main switching station which feed 27 power transformers located at eight locations throughout the test site area, with an additional five SF6-filled 161 kV power circuit breakers and fifteen 161 kV circuit switchers. Annual consumption varies widely from 789,737 MWH (1994) to 361,615 MHW (1991). Consumption averaged 607,968 MWH over past five calendar years. Peak power requirements vary widely from 605,952 KW (1994) to 356,544 KW (1996). Street lighting is provided along the primary roads with pole mounted lights. Natural Gas System -- The natural gas distribution system receives gas from a gate station at 100 psig for distribution throughout the base. There are pressure reducing stations in the system. The system has approximately 10,000 feet of steel pipe, which is protected by a cathodic protection system. The pipe sizes range from 12-inches to 3-inches in diameter. Annual consumption is approximately 600-800 million cubic feet. The primary use of the gas is for testing purposes, fuel for the steam plants and heating. Steam System -- The steam system consists of two steam plants and the steam distribution system. The primary steam plant has four boilers with a combined capacity of 215,000 pounds per hour (pph) at 200 psig. A water treatment unit (currently under construction) utilizing a reverse osmosis water treatment unit, feed water pumps, and Bailey Control system will support the plant. The primary fuel is natural gas with fuel oil backup; there is a 210,000-gallon No.2 fuel oil storage tank. The secondary steam plant has a rating of 38,000 pph at 750 psig using natural gas as fuel. The annual steam production is approximately 155 million pounds. The distribution system is a mixture of trench, above ground and direct burial construction with pipe sizes ranging from 14-inches to 1-1/2 inches in diameter. The system has approximately 80,000 feet of distribution piping. There are four low-pressure accumulator tanks and nine high-pressure accumulator tanks to store steam for testing purposes. The steam discharge pipes from the accumulator tanks are 30-inches, 28-inches and 36-inches in diameter and discharge to the test cells. Water Treatment Plant and Supply System -- The water treatment facility receives water from Woods Reservoir via a secondary reservoir. The treatment plant has a maximum capacity of 2.25 million gallons per day. The treatment plant consists of two coagulation and sedimentation basins, three gravity filters, three chemical feeders, three distribution pumps, and one laboratory for operational monitoring. Treated water is stored in two 250,000-gallon clear wells and one elevated tank. The base water distribution system consists of approximately 25 miles of piping, 50 percent of which is 6-inches in diameter and below. The remainder of the piping system is larger than 6-inches (up to 14-inches). The pressure in the distribution averages 60-70 psi. There are approximately 145 fire hydrants. Cooling Water Supply System: The cooling water system is designed to recirculate cooling water throughout AEDC's test facilities and other industrial users. The cooling water system consists of: a primary pump station with six 25,000 gpm pumps; a secondary reservoir with a 57.412 million gallon capacity; a secondary pump station with three 2,000 gpm pumps, one 10,000 gpm pump, and eight 25,000 gpm pumps; a return pump basin with one 5,000 gpm pump, one 10,000 gpm pump, one 15,000 gpm pump, one 25,000 gpm pump, and three 50,000 gpm pumps; eight cooling towers rated at 25,000 gpm with an associated pump station comprised of one 5,000 gpm pump, one 10,000 gpm pump, one 15,000 gpm pump, one 25,000 gpm pump, and three 50,000 gpm pumps. The advertised capacity is 200,000 gpm. The cooling water distribution system consists of approximately 18 miles of supply and return mains; line and valve sizes are between 6-inches and 84-inches in diameter, 90 percent of which are greater than 6-inches. Cooling water storagefacilities consist of one elevated tank (J-4 complex) 500,00 gallons, one ground level tank (J-4 complex) 1,200,000 gallons, one ASTF return basin 1,300,000 gallons. The cooling water system deliveries approximately 40 billion gallons of raw water to support test and base facilities annually. Sanitary Sewer Collection System -- The sanitary sewer system consists of 16 lift stations and approximately 55,000 feet of collection lines, which are mostly vitrified clay pipe. The system flow discharges into the one of the base's wastewater treatment facilities, of which there are two. The main plant (plant 1) supports the AEDC industrial area. A smaller plant (plant 2) supports Arnold Village area. Plant 1 is a standard rate trickling filter plant which consists of primary settling tanks, trickling filter, various pumps, aerobic digesters, and drying beds with a plant design capacity of 660,000 gpd. Effluent is discharged into Rowland Creek. Plant 2 is package type extended aeration design, with a capacity of 30,000 gpd. It's effluent is discharged in Woods Reservoir. 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. 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 Tennessee 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 Terry Schaumberg (tschaumb@ch2m.com), Tel (210)377-3081. Posted 07/14/99 (W-SN354011). (0195)

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