Director, USAMC Acquisition Center, Aberdeen Proving Ground, Attn: STEAA-AE, 4118 Susquehanna Ave., Aberdeen Proving Ground, MD 21005-5002

S -- SOURCES SOUGHT FOR PRIVATIZATION UNDER 10 USC 2688, "UTILITY SYSTEMS CONVEYANCE AUTHORITY" OF ELECTRIC UTILITY DISTRIBUTION SYSTEMS AT THE U.S. ARMY GARRISON ABERDEEN PROVING GROUND, MARYLAND. DUE 111799 POC Mr. John F. Kimball, Jr., Contract Specialist, 410-278-2373, <fkimbal@apg-emh1.apg.army.mil> and Mr. John F. Bergin, Contracting Officer, 410-278-2362 <jbergin@apg-emh1.apg.army.mil> (FAX for both: 410-278-2458). E-MAIL: Click here to contact the Contracting Officer via, jbergin@apg-emh1.apg.army.mil. The Government is seeking clarification of the ability of responsible potential sources to fulfill the privatization requirements of the U.S. Army Garrison Aberdeen Proving Ground, Maryland, for its electric distribution system at the Edgewood Area ("EA") and Aberdeen Area ("AA"). This notice is a follow-on to a notice posted on the CBDNet June 17, 1999 and published in the June 21, 1999, Commerce Business Daily: "Sources Sought for Privatization of United States Army utility systems for the listed United States Army Utility Systems and the listed Army National Guard Utility Systems throughout the Continental United States". In that notification the Government was seeking to identify responsible potential sources and obtain information regarding privatization of the Edgewood Area electric utility system in accordance with 10 USC 2688, "Utility Systems: Conveyance Authority." Privatization is defined as the "transfer of ownership, operation and maintenance, and obligation to serve" responsibilities. These include such items as environmental compliance, maintenance costs, major system 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 Aberdeen Proving Ground Military Reservation covers about 78,000 acres of land and water area. The Installation is predominantly, but not totally, an area of exclusive Federal jurisdiction (also referred to as a Federal "enclave"). Electric power requirements for the EA and the AA each are about 26,000 kW peak demand and 150,000,000 kWh annual energy usage. The EA power requirement is expected to increase by about 10,000 to 15,000 kW when the Aberdeen Chemical Demilitarization Facility ("ABCDF") becomes operational in March 2002. Each of the areas contains about 100 miles of 4, 12 and 34 kV distribution circuits. In addition, the EA contains 115 kV sub-transmission lines and substation facilities that are owned by the Government but operated and maintained by BGE pursuant to a 1950 joint use agreement. The Aberdeen Proving Ground currently receives regulated electric utility service from Baltimore Gas and Electric Company ("BGE"). The Aberdeen Proving Ground intends to preserve all existing regulated public utility services provided by BGE to all existing and planned master-metered connection/delivery points. The primary delivery point for the AA is the low side of BGE's 115/34 kV Harford Substation, which is located just outside of the Military Reservation. The delivery point will be changed to the high side of a Government-owned 115/34 kV substation which is under construction by BGE just inside the Military Reservation. The primary delivery point for the EA is the Government-owned, BGE operated, 115/34 kV Magnolia Substation, which has insufficient capacity to meet any increase in EA's current power requirement. BGE was proceeding with an upgrade, at no cost to the Government, of the Magnolia Substation with added capacity to accommodate load growth and the ABCDF, but recently suspended work. The critical path for the substation replacement/expansion requires a firm construction commitment by October 2000. The specific elements of the privatized service requirement for electric utility systems within the EA and AA are: (1) service to all areas within the EA and AA; (2) continuation of upstream electric utility service by BGE under rates and conditions as authorized by the Maryland Public Service Commission ("MPSC") to all master-metered delivery points; (3) the completion of a new 115 kV master-metered point of delivery for the AA contemporaneously with the construction of the new 115/34 kV substation; (4) an upgrade of the Magnolia Substation to fulfill the power requirements of the ABCDF; (5) preservation of the 1950 joint use agreement; (6) ability to integrate the on-Post systems with off-Post utility systems; (7) regulated public utility service; (8) public service obligation to provide continuous service after an envisioned 10-year term for a utility service contract. This request for information (RFI) is a component of a systematic process to implement the Department of the Army's utility privatization program. If responsive statements of interest are received, a follow-on element of the process may be an industry forum to be held at the Aberdeen Proving Ground. The forum would be scheduled within two to four weeks from the receipt of expressions of interest to this notice. Depending on the level of interest, the forum would consist of sequential meetings with either (1) each respondent, or (2) a group or subgroup of respondents, or a (3) combination thereof. If an industry forum is determined necessary, notification will be provided by way of an amendment to this advertisement. It is anticipated that any proposal received in response to an RFP will require a certification of an offeror's legal right to provide all elements of the required service and capability to initiate the service within a reasonable time (e.g., 30 to 60 days) after contract award. It is further anticipated that the failure to initiate the required service after contract award would be deemed a termination for default and that liquidated and other appropriate damages may be assessed. The statement of interest submitted by the offeror shall address, as a minimum, all of the following general criteria: (1) capability and experience in the ownership, operation, expansion and maintenance of similar systems; (2) financial capacity to purchase, expand, maintain, and operate a utility system; (3) a statement expressing a willingness and understanding of an obligation to provide continuous utility service, notwithstanding the existence or term of a written utility service contract; (4) understanding of any applicable state or local utility law or franchise requirements, capability of complying with such requirements, and representation of the legal right to provide the applicable service upon contract award; and (5) 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 shall also address the capability and legal right to provide each of the specific privatized utility service requirements. To the extent a capability or legal right would involve the cooperation or involvement of a third party, the basis for such involvement should be described and assurances that the cooperation or involvement would be forthcoming should be provided. A statement of interest shall not exceed 30 pages in length. Interested parties shall refer questions to Mr. John F. Kimball, Jr., at <fkimbal@apg-emh1.apg.army.mil> or call (410) 278-2373. Send statements of interest to Department of the Army, US Army Materiel Command Acquisition Center, ATTN: AMSSB-ACC-AF, Building 4118, Susquehanna Avenue, Aberdeen Proving Ground, Maryland 21005-3013 no later than noon (12:00 p.m.) local Maryland time, 17 November 1999. Posted 10/15/99 (W-SN392125). (0288)

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