SOUTHWESTNAVFACENGCOM, 1220 Pacific Highway, San Diego, CA 92132-5187

S -- PRIVATIZATION UNDER 10 USC 2688, "UTILITY SYSTEMS: CONVEYANCE AUTHORITY", AT VARIOUS NAVY ACTIVITIES LOCATED IN SOUTHERN CALIFORNIA SOL N68711-99-x-xxxx DUE 090799 POC Douglas Powell at (619) 532-3838 WEB: Click here to access the Southwest Division, Naval, www.efdsw.navfac.navy.mil. E-MAIL: Click here to contact the Contracting Officer via, powellhd@efdsw.navfac.navy.mil. B A C K G R O U N D I N F O R M A T I O N United States Code 10 USC 2688, "Utility Systems: Conveyance Authority" grants the Secretary of Defense conveyance authority of utility systems. The fundamental principle of privatization is to allow the military to focus on the core mission of national defense. Owning, operating and maintaining utility systems are not considered core mission requirements. The Secretary of Defense ordered the privatization of utility systems where economical. It is intended that privatization will reduce the Government's life cycle costs. Subsequent to this order, the Department of Navy established a Utilities Privatization Program. Objectives of the program includes engaging industry in the process and eliminating "non-starters" via the request for information (RFI). This RFI is a required component of a complete and systematic process to evaluate interested parties. In order to minimize costs both to potentially interested parties and the Government, this market survey is being issued to determine the interest and economic feasibility of proceeding with formal requests for proposals. Should insufficient credible interest be identified for a particular system, it is likely that no formal solicitation will be issued. Should interest be determined sufficient and credible, a formal request for proposals may be forthcoming. S C O P E The Naval Facilities Engineering Command, Southwest Division, is seeking interest and information for the privatization of the electrical, natural gas, water, and wastewater utility systems located at: 1) Naval Air Weapons Station, China Lake; 2) Naval Air Field, El Centro; 3) Naval Postgraduate School, Monterey; 4) Naval Auxiliary Landing Field, San Clemente Island; 5) Naval Auxiliary Landing Field, San Nicolas Island; and 6) Naval Instrumentation Site, Santa Cruz Island Should privatization result, the assumption of ownership, operation, maintenance and the obligation to continue the service for an indefinite and ongoing period shall transfer to the new owners. Ownership of the entire utility plant and/or distribution system may transfer to a regional, municipal, coop or private utility company. All responsibility for maintaining reliable service, including such items as environmental compliance, maintenance costs, major system renovations, construction, equipment, manpower, and overhead costs shall become the utility provider's responsibility. The commodity associated with the systems may or may not be included. All water rights and rights to federal power shall remain with the Government and not transfer to the new owners. S T A T E M E N T S O F I N T E R E S T Interest may be expressed for one or more of the utility systems located at the above naval installations. Submitted interest statements shall identify utility system(s) of interest and as a minimum, address all of the following criteria: (1) any desired aggregation/bundling of systems and state its benefits; (2) capability and experience in the ownership operation, expansion and maintenance of similar systems; (3) financial capacity to purchase, upgrade, expand, maintain, and operate utility systems; (4) a statement expressing a willingness and understanding of an obligation to provide continuous utility service for an indefinite and ongoing period of time; (5) discussion regarding your company's ability to provide reliable service, respond to emergency situations and adhere to safety rules and regulations; (6) 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; (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 state(s), and US Environmental Protection Agency, and a statement of willingness to comply with same; (8) conceptual rate structure; and, (9) discussion of your conceptual basis of a proposed purchase price (e.g. capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, or other) Elaborate proposals or pricing information is neither required nor desired. Any innovative ideas to achieve the Government's objective of obtaining fair market value, maintaining service reliability and reducing life cycle costs are welcomed. Recommendations for utility system aggregation to achieve stated objectives are encouraged. Joint ventures and partnering concepts designed to improve the economic and service benefits to the Government are also acceptable and encouraged and should be identified in the submitted statement of interest. All interest statements shall be treated as containing proprietary information and shall be kept in confidence. The Government considers this process as "procurement sensitive" and will not divulge details of interest submittals to non-Government entities. Only Government officials crucial to the program will review submitted statements. Therefore, the Government encourages responders to be forthcoming in their submittals. I N S T R U C T I O N S T O R E S P O N D E R S System descriptions have been developed for the above installations. In accordance with Federal Acquisition Regulation 5.102(a)(7), availability will be limited to electronic medium. System descriptions will be available for download on or about August 1, 1999 free of charge via the Internet at http://www.efdswest.navfac.navy.mil. Hard copies (paper sets) or CD-ROM will not be provided by the Government. The official system descriptions (plan) holders list will be maintained on and can be printed from the web site. All interested parties are encouraged to register as (plan) holders of the system descriptions on the web site. System descriptions (plan) holders lists will not be faxed and will only be available from the web site. Registering parties must provide a complete name, mailing address, area code and phone number, interest type (prime contractor, sub contractor, supplier or plan room), email address and size (large business, small business, small disadvantaged business, woman owned small business or other). Notification of any changes (amendments) to the solicitation will be made only on the Internet. It will be the contractor's responsibility to check the web site for any posted changes. Only one statement of interest should be submitted by any one company, and should not exceed 15 pages in length, plus one additional page specific to each installation and/or utility system for which interest is expressed. Interested parties should submit a statement of interest on company letterhead to: Naval Facilities Engineering Command Public Works Area Focus Team Attn: H. Douglas Powell, Code 4PW2.HP 1220 Pacific Highway San Diego, CA 92132-5190 The Government does not intend to issue a conveyance document on the basis of this announcement or otherwise pay for the information solicited. It should be noted that other RFI's for different U.S. Navy installations and utility systems may be issued in the same time frame, or at a later date. A separate response to each RFI is required. Site visits are not considered necessary for preparation and submittal of statements of interest. If site visits are later determined necessary, notification will be provided by way of an (internet) amendment to this advertisement. Posted 08/02/99 (W-SN361783). (0214)

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