Burns & McDonnell, 9400 Ward Parkway, Kansas City, MO 64114

M -- PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT DAVIS-MONTHAN AIR FORCE BASE, AZ DUE 121599 POC Burns & McDonnell Engineering Co. (Contractor for the U.S. Air Force), 9400 Ward Parkway, Kansas City, MO 64114. POC: Randy Foster, Tel (816) 822-3852. E-MAIL: Click here to contact Greg Fisher via e-mail., gfisher@burnsmcd.com. PURPOSE: Burns & McDonnell Engineering Co., 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 Davis-Monthan Air Force Base, AZ. OBJECTIVE: Should privatization result of Davis-Monthan Air Force Base's natural gas utility system, the ownership, 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 the utility system and services. SYSTEM DESCRIPTIONS: Davis-Monthan Air Force Base is located within the city limits of Tucson, AZ. It contains 10,633 acres of land, including 4,579 acres that are leased. It has a gross of 5.8 million square feet of facilities and approximately 1850 total buildings. Approximately 600 of those facilities are commercial or industrial and about 1250 units are Military Family Housing. The utility system only consists of the natural gas distribution system. The base does not generate its own natural gas. Additional utility system information is available electronically (in Microsoft Word 6.0) by submitting an e-mail request to Greg Fisher (gfisher@burnsmcd.com). PROCEDURES: This request to interested parties is for gathering information and is a required component and 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 issuance of 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 MAY BE FORTHCOMING. Small Business interests shall note the FAR Part 19 Standard Industrial Codes (SIC) and Size Standards for the natural gas system 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) a specific statement of interest specifying the utility system they are interested in acquiring; (2) financial capacity to purchase, expand and operate the utility system (providing a copy of the firm's annual report with the statement of interest is highly encouraged); (3) the size of the business (e.g. large, small, small-disadvantaged) and applicable special classification (e.g. 8(a), woman-owned, etc.); (4) capability and experience in ownership, operation and maintenance of similar utility systems; (5) statement detailing the legal right to serve, own, operate, and maintain utility systems within the state; (6) statement detailing your understanding of any existing franchises and the effect on your ability to provide service to the base; (7) statement detailing your understanding of applicable federal, state and local utility laws/regulations and your compliance capability; (8) statement detailing your understanding of federal, territorial, and local environmental laws/regulations and familiarity and experience with environmental compliance procedures/regulations (i.e. local, state and federal including the U. S. Environmental Protection Agency); (9) conceptual basis (excluding numerical analysis or proposed prices) for a proposed purchase price (e.g. capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, nominal cost, etc.); (10) conceptual basis (excluding numerical analysis or proposed rates) for a proposed rate plan including the handling of costs to operate, maintain, renew and renovate the existing system over time (i.e. firm-fixed, cost plus, volumetric, etc.); (11) ideas regarding conjunctive metering and billing for service on base (i.e. master metering, individual meter, sub-metering, single billing, etc.); and (12) suggested ideas and approaches to renovate the utility system. 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. Send info to: Randy Foster, Burns & McDonnell Engineering Co., 9400 Ward Parkway, Kansas City, MO 64114. Posted 11/12/99 (W-SN400409). (0316)

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