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

M -- PRIVATIZATION OF UTILITY SYSTEMS:CONVEYANCE AUTHORITY AT ELMENDORF AIR FORCE BASE, ALASKA DUE 101599 POC For the U.S. Air Force: CH2M HILL, 301 West Northern Lights Blvd. Suite 601 Anchorage AK 99503-2691 POC: Floyd J. Damron, P.E., Alaska Office Manager (fdamron@ch2m.com), Tel (907) 278-2551 E-MAIL: Floyd J. Damron, P.E., Alaska Office Manager, fdamron@ch2m.com. PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT ELMENDORF AIR FORCE BASE, ALASKA, DUE: 101599 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 Commander of Elmendorf Air Force Base is seeking interest and information specifically for the potential privatization of the electric, central heat and power plant, steam and condensate, natural gas, potable water, and wastewater utility systems at Elmendorf Air Force Base, Alaska. Also included is the electrical, potable water, and wastewater utility systems at the Seward Recreation Camp, Seward, Alaska. OBJECTIVE: Should privatization result, the ownership of Seward Recreation Camp's electrical, potable water, and wastewater utility systems and Elmendorf Air Force Base's electric, central heat and power plant, steam and condensate, natural gas, potable water, and wastewater utility 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. Elmendorf Air Force Base Electrical -- Power for Elmendorf AFB is received at 34.5 kV from Municipal Light and Power (ML&P) at the Central Heating and Power Plant (CH/PP). The distribution system on base is a 12.47 kV, 3, 4 wire system, with 34.5 kV express feeds from the CH/PP to two outlying substations. The base also has a 12.47 backup tie top ML&P for the new hospital. The distribution system is made up of approximately 1,868,627 lineal feet of overhead and underground distribution circuits, distribution transformers, switches and street lighting fixtures. The annual electric energy usage for this facility is roughly 120,411,175 kWH with a peak demand of approximately 20 MW occurring during the winter months. Electric Power Generation -- Elmendorf AFB has a natural gas-fired central heating and power plant with three 7.5 MW turbine/generators and six 150,000 lbs./hour boilers. The plant consumes approximately 2.7 billion cubic feet of natural gas per year. JP-8 is the backup fuel. The annual power production is approximately 125,000 MWH. The power plant supplies steam at 200 psig to the steam distribution system from turbine extractions or a pressure reducing/de-superheating valve. Steam -- The steam distribution system at Elmendorf AFB receives steam from the power plant at 200 psig. The annual steam consumption is approximately 700 million pounds. The distribution system piping is direct burial construction with pipe sizes ranging from 20-inches to 1-inch in diameter. The system has approximately 160,000 feet of distribution piping. Condensate is returned to the power plant. Natural Gas -The natural gas distribution system at Elmendorf AFB receives gas from Enstar through four metering points. One gate station with two meters provides gas to the central heating and power plant and a section of the gas distribution system. Two other metering points provide gas at 60 psig or 30 psig for distribution throughout the balance of the gas distribution system. There are no district pressure regulating stations in the system. The system has approximately 30,000 feet of steel pipe and 75,000 feet of PE pipe. The steel pipe sizes range from 6-inches to 2-inches in diameter. The PE pipe sizes range from 6-inches to 1-inch in diameter. Annual consumption is approximately3,000,000 MCF (thousand cubic feet) of which 90 percent is used at the central heat and power plant. The primary use of the remaining gas is for heating purposes. Water -- Most water supplied to the Base is supplied by Fort Richardson's water treatment plant through four metered main feed connections to the Base water distribution system. The Base water distribution system includes approximately 472,000 feet of distribution main piping that ranges up to 14-inches in diameter. The pipe materials include cast iron, ductile iron, transite, and high density polyethylene pipe that was installed from the 1950s to the present. In addition to the Fort Richardson water supply, onsite wells provide backup water supply and/or sole source water supply to specific facilities. Two wells, 850 gpm and 337 gpm, are standby wells that can served facilities or can be connected to the distribution system. Twelve facilities are each served by a dedicated single water supply well that has capacities ranging between 8 gpm to 85gpm. Water use averages about 3.5 million gallons per day. Wastewater -- Wastewater is collected on-base in a gravity collection system and is discharged to the city sewer collection system at two metered locations. The wastewater is treated by the city. The sewer collection system includes approximately 375,000 feet of sewer collection mains that range in size up to 20-inch and 733 manholes. Nine facilities on-base are served by wastewater lift stations that are included in the collection system. Piping materials include high density polyethylene asbestos cement, transity, cast iron, ductile iron, and vitrified clay that date from the 1950s to the present. Wastewater flow averages between 3-4 million gallons per day. Seward Recreation Camp Electrical -- Power for Seward Recreation Camp is received from the City of Seward at 12.47 kV near the Main Building. Primary power is then distributed throughout the site to eight pad mounted single and three phase distribution transformers ranging in size 25 to112.5 kV. The distribution circuits consist of approximately 570 feet of underground distribution circuits. The annual electric energy usage for this facility is roughly 395,820 kWH with a peak demand of approximately 209 kW occurring during the summer months. Water -- Most water supplied to the Base is supplied by Fort Richardson's water treatment plant through four metered main feed connections to the Base water distribution system. The Base water distribution system includes approximately 472,000 feet of distribution main piping that ranges up to 14-inches in diameter. The pipe materials include cast iron, ductile iron, transite, and high density polyethylene pipe that was installed from the 1950s to the present. In addition to the Fort Richardson water supply, onsite wells provide backup water supply and/or sole source water supply to specific facilities. Two wells, 850 gpm and 337 gpm, are standby wells that can served facilities or can be connected to the distribution system. Twelve facilities are each served by a dedicated single water supply well that has capacities ranging between 8 gpm to 85 gpm. Water use averages about 3.5 million gallons per day. Wastewater -- Wastewater is collected on-base in a gravity collection system and is discharged to the city sewer collection system at two metered locations. The wastewater is treated by the city. The sewer collection system includes approximately 375,000 feet of sewer collection mains that range in size up to 20-inch and 733 manholes. Nine facilities on-base are served by wastewater lift stations that are included in the collection system. Piping materials include high density polyethylene asbestos cement, transity, cast iron, ductile iron, and vitrified clay that date from the 1950s to the present. Wastewater flow averages between 3-4 million gallons per day 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 utilities privatization program. In order to minimize costs both to potentially interested parties and to 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 MIGHT 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 Alaska 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 might 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 CH2M HILL, 301 West Northern Lights Blvd. Suite 601 Anchorage AK 99503-2691 POC: Floyd J. Damron, P.E., Alaska Office Man Posted 09/21/99 (W-SN382583). (0264)

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