Department of the Air Force, Air Force Space Command, 21CONS (Bldg 982), Base Support Flight, 700 Suffolk Street, STE 1200, Peterson AFB, CO, 80914-1200

S -- UTILITIES PRIVATIZATION, REQUEST FOR INFORMATION, STATEMENT OF SOL F05604UTIL DUE 102199 POC Judy Blomquist, Contract Specialist, Phone (719) 556-4713, Fax (719) 556-4538, Email Judy.Blomquist@peterson.af.mil WEB: Visit this URL for the latest information about this, http://www.eps.gov/cgi-bin/WebObjects/EPS?ACode=R&;ProjID=F05604UTIL&Lo cID=477. E-MAIL: Judy Blomquist, Judy.Blomquist@peterson.af.mil. This is not a Notice of Solicitation. Rather, this is a follow-up notice to announcement published in the Commerce Business Daily (CBD) on 4 December 1998 regarding the privatization of the utility systems at Peterson AFB, CO. Background: The Air Force has been mandated by the 1997 Defense Reform Initiative (DRI) to study the feasibility of privatizing electric distribution, natural gas distribution, potable water distribution, and wastewater collection systems at Peterson AFB 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 systems 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 goal of the process is to privatize all utility infrastructures that are determined to be economically feasible without an adverse mission impact. Peterson AFB currently receives regulated electric, natural gas, potable water and wastewater utility services from Colorado Springs Utilities (CSU). We intend to preserve all existing regulated public utility services provided by CSU to all mastered metered connection/delivery points. CSU also provides a contract wheeling service for delivery of the Base_s hydropower allocation from the Western Area Power Administration (WAPA). Peterson AFB is located within the city limits of the City of Colorado Springs on land leased from the City for a term that extends through 30 June 2066. CSU_s existing electric, natural gas and potable water services are provided pursuant to Special Contract rate schedules which are available only to Peterson AFB, the United States Air Force Academy and Fort Carson. Records indicate that Peterson AFB did not pay a connection charge to the City of Colorado Springs for water and wastewater treatment capacity when the Base was established. Information on CSU_s special service arrangement is available from the CSU website. The 4 December 1998 CBD notice provided information on how to obtain summary utility descriptions. REQUIREMENTS: The specific elements of the privatized service requirement for each utility system within Peterson AFB are: (1) service to all areas within Peterson AFB; (2) ability to integrate the On-Base systems with Off-Base utility systems, including connections at multiple additional delivery points at secondary (12 kV and less) voltage levels for electric service and using smaller diameter pipes and mains for natural gas, potable water and wastewater service; (3) continuation of upstream electric, natural gas, potable water service by CSU to the mastered metered delivery points and the continuation of downstream wastewater transmission and treatment by CSU; (4) preservation of the CSU wheeling agreement for delivery of the Base_s WAPA hydropower allocation; (5) regulated public utility service; and (6) public service obligation to provide continuous service after the term of a formal, written utility service contract or in the event there is no written utility service contract. RESPONSES: the statement of interest submitted shall address all of the following criteria, as a minimum, as applied collectively and individually to each utility system: (1) the identity of the entity providing the expression of interest and, if different, the identity of the prospective privatized service provider(s); (2) the privatized service provider_s capability and experience in the ownership of similar systems and the ownership, operation, expansion and maintenance of similar systems; (3) financial capacity to purchase, expand, maintain, and operate a utility system; (4) a statement expressing willingness and understanding of an obligation to provide continuous utility service, notwithstanding the existence or term of a written utility service contract; (5) understanding of any applicable state or local utility law or franchise requirements, capability of complying with such requirements, and representations of the legal right to provide the applicable service upon contract award; (6) 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 must also address the capability and legal right to provide each of the specific privatized utility service requirements. In addition, to the extent a capability or legal right would involve the cooperation or involvement of a third party, the basis for such involvement must be described and the assurances that the cooperation or involvement would be forthcoming must be provided. Responses are limited to 30 pages in length and may incorporate, by reference, all or selected portions of the response to the 4 December 1998 announcement. This request for information is a component of a systematic approach to implement the Air Force_s privatization program. If responsive statements are received, clarification requests and/or an industry conference may be scheduled at Peterson AFB in the future. We anticipate that a proposal submitted in response to any Request for Proposal will require a certification of an offeror_s legal right to provide all elements of the required service and the capability to initiate the service within a reasonable time (e.g. 30 to 60 days) after contract award. We further anticipate that failure to initiate the required service after contract award would be deemed as grounds for termination for default and that liquidated and other appropriate damages may be assessed. This announcement is based upon the best information available, may be subject to future modification, is not a request a proposal and in no way commits the Government to take action. Responses to this notice as well as any questions must be directed to 21 CONS/LGCZA, Attention of Ms. Judy Blomquist, 135 East Ent Avenue, Suite 101, Peterson AFB, CO 80914-1385. Phone (719) 556-7506. Responses are due (within 15 days of the date the announcement is Posted 09/28/99 (D-SN385332). (0271)

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