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COMMERCE BUSINESS DAILY ISSUE OF AUGUST 3,1999 PSA#2401

Department of the Air Force, Direct Reporting Units, 10 ABW/LGC, 8110 Industrial Drive, Suite 200, USAF Academy, CO, 80840-2315

S -- PRIVATIZATION UNDER 10 USC 2688, "UTILITY SYSTEMS CONVEYANCE AUTHORITY" OF UTILITY DISTRIBUTION SYSTEMS AT THE USAF ACADEMY, COLORADO SOL 0001 DUE 083199 POC Leslie Ryan, Contracting Officer, Phone (719)333-8267, Fax (719)333-2892, Email leslie.ryan@usafa.af.mil WEB: Visit this URL for the latest information about this, http://www.eps.gov/cgi-bin/WebObjects/EPS?ACode=R&;ProjID=0001&LocID=47 9. E-MAIL: Leslie Ryan, leslie.ryan@usafa.af.mil. The Government is seeking clarification of the ability of responsible potential sources to fulfill the privatization requirements of the USAF Academy, Colorado, for its electric distribution, natural gas distribution, potable water distribution, non-potable water distribution, and wastewater collection and treatment systems. This notice is a follow-on to a notice published in the December 4, 1998, Commerce Business Daily (CBD) seeking to identify responsible potential sources and obtain information regarding privatization of the above noted utility systems in accordance with 10 USC 2688, "Utility Systems: Conveyance Authority." Privatization is defined as the transfer of ownership and operations and maintenance responsibilities, to include such items as environmental compliance, maintenance costs, major system renovations and upgrades, construction, equipment and manpower, of Government-owned systems to a municipal, private, regional, district, or cooperative utility company or to another entity. The USAF Academy currently receives regulated electric, natural gas and potable water utility service from Colorado Springs Utilities ("CSU"). The Air Force Academy intends to preserve all existing regulated public utility services provided by CSU to all existing master-metered connection/delivery points. CSU's existing electric and natural gas service is provided pursuant to Special Contract Service rate schedules which are available only to the Air Force Academy, Peterson AFB, and to Fort Carson. Information on CSU's special service arrangements is available from the CSU website. The December 4, 1998, CBD notice provided information on how to obtain summary utility system descriptions. The specific elements of the privatized service requirement for each utility system within the Air Force Academy are: (1) regulated public utility service; (2) public service obligation to provide continuous service after an envisioned 10-year term for a utility service contract; (3) service to all areas within the Air Force Academy; (4) ability to integrate the on-Base systems with off-Base utility systems; (5) continuation of upstream electric, natural gas and potable water service by CSU to the master-metered delivery points; (6) the preservation of all special tariffed service arrangements related to the provision of utility service by CSU upstream of the master-metered delivery points for electric, natural gas and potable water service; (7) the ability to convert potable water purchases from CSU to non-potable water uses (e.g., the produc-tive use of treated discharges from the Government-owned wastewater treatment plant); and (8) that the Academy's wastewater treatment system qualify as a "Publicly-Owned Treatment Work (POTW)" under the Resource Conservation and Recovery Act. This request for information (RFI) is a component of a systematic process to implement the Department of the Air Force's utility privatization program. If responsive statements of interest are received, a follow-on element of the process may be an industry forum to be held at the USAF Academy. The forum would be scheduled to occur within two to four weeks from the receipt of expressions of interest in response to this notice. Depending on the level of interest, the forum would consist of either sequential meetings with each respondent, a group or sub-group of respondents, or a combination thereof. If an industry forum is determined necessary, notification will be provided by way of an (internet) amendment to this advertisement. It is anticipated that any proposal received in response to a privatization request for proposals (RFP) will require a certification of an offeror's legal right to provide all elements of the required service and capability to initiate the service within a reasonable time (e.g., 30 to 60 days) after contract award. It is further anticipated that the failure to initiate the required service after contract award would be deemed a termination for default and that liquidated and other appropriate damages may be assessed. The statement of interest submitted shall address all of the following general criteria, as a minimum, as applied collectively and individually to each utility system: (1) capability and experience in the ownership, operation, expansion and maintenance of similar systems; (2) financial capacity to purchase, expand, maintain, and operate a utility system; (3) a statement expressing a willingness and understanding of an obligation to provide continuous utility service, notwithstanding the existence or term of a written utility service contract; (4) understanding of any applicable state or local utility law or franchise requirements, capability of complying with such requirements, and representation of the legal right to provide the applicable service upon contract award; (5) understanding of the federal, state, and local environmental laws and regulations, and familiarity and experience with environmental compliance procedures and regulations. The statement of interest shall also address the capability and legal right to provide each of the specific privatized utility service requirements. To the extent a capability or legal right would involve the cooperation or involvement of a third party, the basis for such involvement should be described and assurances that the cooperation or involvement would be forthcoming should be provided. A statement of interest shall not exceed 30 pages in length. Respondents that submitted an expression of interest in response to the December 4, 1998, notice, may incorporate by reference all or selected portions of their response, if their response previously addressed the information requested above. Respondents should refer questions to Ms. Leslie Ryan at leslie.ryan@usafa.af.mil or may call (719) 333-8267. Send statements of interest to 10 ABW/LGCW, 8110 Industrial Drive, Suite 102, USAF Academy CO 80840-2315 no later than noon (12:00 p.m.) local Colorado time, 31 August 99. Posted 07/30/99 (D-SN361140). (0211)

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