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

S -- PRIVATIZATION OF UTILITY SYSTEMS:CONVEYANCE AUTHORITY AT CLEAR AIR STATION, 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 CLEAR AIR STATION, 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 Clear Air Station is seeking interest and information specifically for the potential privatization of the electric, steam heating, potable water, and wastewater utility systems at Clear Air Station, Alaska. OBJECTIVE: Should privatization result, the ownership of Clear Air Station's electric, steam heating, 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. Electrical -- Power for Clear Air Station is generated by the government owned Central and Heating Plant (CH/PP). The CH/PP has three coal fired boilers. Each boiler was designed to operate at 625psig and 825F, with three 7.5 megawatt General Electric (G.E) steam turbine generators and one 1.0 megawatt diesel engine generator. The CH/PP produces power at 4160 volts wye, with an ungrounded neutral. Primary power is distributed throughout the site through overhead three phase circuits consisting of approximately 29,000 feet of 1950's vintage #1/0 ACSR. In addition there exists roughly 136,000 circuit feet of insulated conductor and 96 single and three phase transformers ranging in size from 5 to 1000 kVA. The annual electric energy usage for this facility is roughly 75,480,000 kWH with a peak demand of approximately 10,993 kW occurring during the fall months. These numbers include the CH/PP station loads. Electric Power Generation -Clear AS has a coal-fired central heating and power plant with three 7.5 MW turbine/generators and three 100,000 lbs./hour boilers. The plant burns approximately 83,000 tons of sub-bituminous coal per year. The annual power production is approximately 70,000 MWH. The power plant supplies steam at 65 psig to the steam distribution system from a turbine extraction or a pressure reducing/de-superheating valve. Steam -- The steam distribution system at Clear AS receives steam from the power plant at 65 psig. The annual steam consumption is approximately 185 million pounds. The distribution system is a mixture of trench and above ground in passageway construction with pipe sizes ranging from 8-inches to 1-1/2 inches in diameter. The system has approximately 21,000 feet of distribution piping. Condensate is returned to the power plant for reuse. Water -- Potable water is supplied by on-base groundwater supply wells, chlorination system, water supply pumps, and the piping distribution system. The main potable water supply well pump has a 250 gpm capacity. Fire protection water supply pumps include two wells with 1,000 gpm diesel powered well pumps. Well water is chlorinated and then pressurized by two 260 gpm water supply pumps and a 1,500 gallons hydropneumatic tank. The water distribution piping system includes approximately 25,000 feet of 4-inch to 8-inch water main piping. Water production flow averages approximately 150,000 gallons per day. Wastewater -- Wastewater is collected on Base, treated for primary solids removal, and discharged to an on-base leach field system. The collection piping includes approximately 14,000 feet of 6-inch to 10-inch mains and one lift station. The primary treatment facilities include a communicator, Imhoff clarifier, and sewage sludge drying bed. Clarified effluent flows to a 26,136 square feet leach field. The collection system was mostly constructed in the 1960s. The treatment system was refurbished in 1992. The leach field was constructed in 1997. Wastewater flow averages approximately 150,000 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 Manager (fdamron@ch2m.com), Tel (907) 278-2551. Posted 09/21/99 (W-SN382577). (0264)

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