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

M -- PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT BEALE AIR FORCE BASE, CALIFORNIA DUE 102999 POC Jared Stigge, (405) 416-8190 (jstigge@chguernsey.com). Secondary contact: Dale Allen, (405) 416-8106 (dallen@chguernsey.com). E-MAIL: Click here to contact Jared Stigge via email, jstigge@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 natural gas utility system at Beale Air Force Base, California. OBJECTIVE: Should privatization result, the ownership, operation, and maintenance of Beale Air Force Base's natural gas utility system will transfer to a utility service provider, 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 natural gas utility system at the base and is subject to change. Beale AFB is comprised of 1,941 facilities and 1,682 buildings, totaling 2,623 complexes. The buildings consist of 1,365 family housing units and 317 base support units (i.e. commissary, exchange, medical, etc.). The natural gas distribution system consists of approximately 33,385 linear feet of mains and laterals. 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: 4922/$5M, 4923/$5M, 4924/500, 4925/$5M, 4932/$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) capability and experience in ownership, operation, maintenance and construction of similar utility systems; (2) financial capacity to purchase, expand and operate the utility system; (3) statement detailing the understanding of the obligation to serve in regards to continuous utility service; (4) 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; (5) ideas regarding conjunctive metering and billing for service on base (excluding numerical analysis or proposed rates); (6) 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); (7) statement detailing your understanding of applicable state and local utility laws and regulations and your compliance capability; (8) statement detailing your understanding of any existing franchises and your ability to provide service given these conditions; (9) statement detailing your understanding of federal, territorial and local environmental laws and regulations, and familiarity and experience with environmental compliance procedures and regulations for the state of California and the U. S. Environmental Protection Agency; and (10) 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 system 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 09/30/99 (W-SN386738). (0273)

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