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COMMERCE BUSINESS DAILY ISSUE OF OCTOBER 22,1999 PSA#2460

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

S -- PRIVATIZATION OF UTILITIES AT THE COMBINED 440TH AIRLIFT WING OF THE AIR FORCE RESERVE AND 128TH AIR REFULING WING OF THE WISCONSIN AIR NATIONAL GUARD AT GENERAL MITCHELL INTERNATIONAL AIRPORT, MILWAUKEE, WISCONSIN DUE 112299 POC CH2M HILL, 613, NW Loop 410, Suite 200, San Antonio, TX 78216 POC: Christine Davila (cdavila@ch2m.com), Tel (210)377-3081 E-MAIL: CH2M HILL, 613, NW Loop 410, Suite 200, San Antonio,, cdavila@ch2m.com. PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT THE COMBINED 440TH AIRLIFT WING OF THE AIR FORCE RESERVE AND 128TH AIR REFULING WING OF THE WISCONSIN AIR NATIONAL GUARD AT GENERAL MITCHELL INTERNATIONAL AIRPORT, MILWAUKEE, WISCONSIN. SOL: N/A, DUE: 112299 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 Commanders of the 440th Airlift Wing (AW) of the Air Force Reserve and the 128th Air Refueling Wing (ARW) of the Wisconsin Air National Guard are seeking interest and information specifically for the potential privatization of the potable water, wastewater, and electrical utility systems at the 440th AW and potable water, wastewater, natural gas, and electrical utility systems at the 128th ARW. The utility systems shall be evaluated on an individual basis; but the privatization shall combine and group as many systems as feasible, considering the requirement for two independent contracts, under a single entity. The 440 AW will take the joint privatization lead, but separate privatization agreements and independent contracts will be required. OBJECTIVE: Should privatization result, the ownership the 440th AW and 128th ARW's potable water, wastewater, natural gas, and electrical 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. The 440 AW is geographically located at the southwest corner of General Mitchell International Airport (IAP) and has 70 buildings (389,774 SF) on 102 acres of Air Force owned land. The majority of the 128 ARW, 22 buildings (271215 SF) on 58.5 acres, is located at the southeast corner of General Mitchell IAP. However, a small number of the 128 ARW facilities, 3 buildings (30066 SF) on 5 acres, are located at the southwest corner of the airport, directly north of the 440 AW facilities. Water-Potable water is supplied to the 440th AW and 128th ARW by the City of Milwaukee. Water is distributed throughout the 440th AW in approximately 18,200 lineal feet of cast iron, copper, and PVC water pipes, and the water distribution system in the 128th ARW contains 11,600 lineal feet of cast iron and PVC pipes. Sizes range up to 12-inches in diameter. The 440th AW and 128th ARW each have approximately 38 hydrants. Wastewater-Wastewater collected on the 440th AW is discharged to the Milwaukee Metro Sewer District. The system contains approximately 10,586 lineal feet of vitrified clay and PVC pipe. Sizes range from 6-10 inches in diameter. The system is a combination of gravity and force mains with 5 sewage lift stations. The wastewater from the 128th ARW is discharged to the Cudahy Sanitary Sewer System. The system contains approximately 4,700 lineal feet of pipe with sizes ranging from 4-10 inches. There are two sewage lift stations which transport the wastewater to the main discharge pipe. Electrical-Power for both the 440th AW and 128th ARW is supplied by Wisconsin Electric Power Company. Both systems are comprised of a combination of overhead and underground electric lines, and pole and pad mounted transformers. The 440th ARW and 128th ARW contain approximately 9,400 lineal feet and 2,900 lineal feet of above ground power lines, and 6,600 lineal feet and 1,700 lineal feet of underground power lines, respectively. The 440th AW electrical system contains approximately 33 transformers and the 128th ARW contains approximately 15 transformers. Gas-Natural gas is provided to the 128th ARW by Wisconsin Natural Gas. Wisconsin Natural Gas currently owns a portion of the gas pipes, and the remaining 3,600 lineal feet of pipe is owned by the base. The pipe sizes range from 11/4 2 inches in diameter. The gas supply enters on the east side of the base and is distributed throughout the base via two main 2-inch diameter lines. 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 proposals. Should insufficient credible interest be identified for a privatization action, it is highly likely that no formal solicitationwill 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: 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 New York 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 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. The point of contact is CH2M HILL, 613, NW Loop 410, Suite 200, San Antonio, TX 78216 POC: Christine Davila (cdavila@ch2m.com), Tel (210)377-3081 Posted 10/20/99 (W-SN393286). (0293)

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