C. H. Guernsey and Company, 5555 North Grand Blvd, Oklahoma City, OK 73112

S -- PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT HILL AIR FORCE BASE, UTAH DUE 102099 POC Robert Bartlow, (405) 416-8326 (bbartlow@chguernsey.com). Secondary contact: Jared Stigge, (405) 416-8190 (jstigge@chguernsey.com). WEB: Click here to visit Hill AFB's privatization website, http://contracting.hill.af.mil/html/a76hp/privatization.html. E-MAIL: Click here to contact Robert Bartlow via email, bbartlow@chguernsey.com. C.H. Guernsey and Company, as a contractor to 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, potable water, wastewater and central heating utility systems at Hill Air Force Base, Utah. OBJECTIVE: Should privatization result, the ownership, operation, and maintenance of Hill Air Force Base's potable electrical, natural gas, potable water, wastewater and central heating utility systems will transfer to a utility service provider or providers, along with the obligation to continue to provide utility service for an indefinite and ongoing period. 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 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 of the size, scope and general description of the electrical, natural gas, potable water, wastewater and central heating utility systems at the base and is subject to change. The main base lies approximately 30 miles north of Salt Lake City adjacent to Interstate 15. Hill AFB includes the main base (6,700 acres), Little Mountain Test Annex (740 acres, 30 Miles distant), the Utah Test and Training Range (UTTR) North and South (954,000 acres, 100 Miles distant) including Bovine Mountain (145 miles distant), Grassy Mountain (92 miles distant), Wendover Peak (150 Miles distant), Carter Creek (105 miles distant), Confusion Peak near Trout Creek (215 miles distant) and Boulder WY (245 miles distant.) These locations include 1546 buildings (14,265,621 SF) set on 961,784 acres. Much of the utility system on Hill AFB and UTTR is located in an explosive hazard area. Utility systems to be privatized are generally described as follows: Electrical: power is supplied by Utah Power and Light over two 46.1 kV overhead transmission lines. Other electric providers to remote areas include: Wells Rural Electric, Bridger Valley Electric, Raft River Electric, and Mt. Wheeler Electric. The main base distribution system includes approximately 200 miles of 12.0 kV circuits, two-thirds of which are overhead and one-third underground. The overhead portion is mostly bare copper conductors suspended on wooden poles. The underground portion consists of cable in duct banks, although there is some direct burial cable. Pole- or pad-mounted transformers are used to step the voltage down to the required utilization level. Four substations are controlled by a "Supervisory Controlled Automated Data Acquisition" (SCADA) computer system. Typicalutilization voltages are 277/480-volt three-phase, 120/208-volt three-phase and 120/240 volt single-phase. The electrical system includes street and traffic lighting along with airfield lighting and security lighting. Natural Gas: gas is delivered to the base at several delivery and metering points around the perimeter of the base by the Questar Gas Company, with the primary supplier being IGI Resources of Idaho. Gas is delivered at a pressure of 350 pounds, while distribution on-base is primarily underground at a pressure of 35 pounds. There are approximately 44 miles of underground piping in sizes ranging from 3/4 to 8 inches, 70 gas meters, and 1500 regulators (200 of which have been recently replaced.) Approximately 80% of the underground system is polyethylene installed in the past ten years. The remaining 20% is 14-year-old steel pipe serving several housing areas. Natural gas is also provided to Little Mountain and UTTR North, each with one delivery point that is regulated and metered. Potable water: water is produced on-base by six permitted wells; an additional three wells must be repaired. Water treatment is by chlorination, fluoridation and phosphate added at each well. Supplementary potable water is supplied by the Weber Basin Conservancy District. There are approximately 187 miles of distribution piping in the main system, including cast iron, ductile iron, asbestos-cement and polyvinyl chloride pipes ranging in size from 1 1/2 to 24 inches in diameter, as well as approximately 13,000 valves. The potable water system includes approximately 1200 back flow preventers, an automated lawn irrigation system and three swimming pools. Storage is provided by one elevated metal tank, two ground level metal tanks, and three below-ground concrete tanks, with tank sizes varying from .8 to 3.5 million gallons. The main system was originally constructed in the 1940's and expanded in the 1950's and 1960's. In addition to the major system on-base, two minor systems serve Little Mountain and UTTR North. Wastewater: the wastewater utility consists of one major system on-base and two minor systems at Little Mountain and UTTR North; these systems were originally constructed in the 1940's and expanded in the 1950's and 1960's. Wastewater from the main base is discharged to the North Davis County sanitary sewer system through four flow meters. The main system includes 19 pump stations, 14 septic tank systems and 4 holding tanks; the main system also includes approximately 200 miles of vitrified clay, polyvinyl chloride and cast iron piping ranging in size from 4 to 15 inches in diameter. Central Heating: primary heating for the main base is steam generated by dual fuel boilers at multiple locations constructed in the 1940's and 1950's. Gas is the primary fuel source, with fuel oil as a backup; there is also a boiler fueled with used oil included in the system. Each generation location has multiple boilers with 100% redundancy. Distribution is via 35 miles of piping, which is 50% buried and 50% above ground. Steam is softened and chemically treated at each generation point; make up water for the entire system is approximately 12,000,000 gallons per year. There is also a small system at Little Mountain consisting of one plant that houses two boilers. There is no backup fuel source at Little Mountain. 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 proposal. 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: 4911/4 Million (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 packaging/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; (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 prices) 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 regulations 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 Utah and the U. S. Environmental Protection Agency; and (11) business size (large, small, small-disadvantage, 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 or 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 their 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. Posted 09/14/99 (W-SN380233). (0257)

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