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

Y -- PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT LUKE 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 wastewater and natural gas utility systems at Luke Air Force Base (AZ), Gila Bend Air Field (AZ), and Luke Air Force Base recreational area (Fort Tuthill, AZ). OBJECTIVE: Should privatization result of wastewater and natural gas utility systems at Luke Air Force Base, Gila Bend Air Field, and Fort Tuthill, 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 utility systems and services. SYSTEM DESCRIPTIONS: Luke Air Force Base is located 15 miles due west of Phoenix, AZ. It has 356 buildings and 874 military family housing units, spanning 4,524,064 square feet, which the Air Force controls. Gila Bend Air Field is 65 miles southwest of Phoenix, AZ. It has 40 buildings and 180,605 square feet, which the Air Force controls. Fort Tuthill is 135 miles north of Phoenix, AZ. It has 31 buildings and 44,119 square feet, which the Air Force controls. At each location, the utilities to be possibly privatized are the wastewater and natural gas distribution systems only. Luke Air Force Base has its own wastewater treatment plant. Although the systems shall be evaluated individually, privatization shall combine and group as many systems as is feasible under a single RFP. 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 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) a specific statement of interest specifying which utility systems they are interested in acquiring; (2) financial capacity to purchase, expand and operate the utility systems (providing a copy of the firm's annual report with the statement if interest is highly encouraged); (3) the size of the business (e.g. large, small, small-disadvantaged) and applicable special classification (e.g. 8(a), women-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 maintainutility 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 or bundle multiple utility systems. 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-SN400404). (0316)

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