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

E -- PRIVATIZATION OF UTILITY SYSTEMS AT MALMSTROM AIR FORCE BASE, MONTANA DUE 012400 POC For the U.S. Air Force: CH2M HILL, 613, NW Loop 410, Suite 200, San Antonio, TX 78216 POC: Christine Davila (cdavila@ch2m.com), Tel (210)377-3081 E-MAIL: Christine Davila (cdavila@ch2m.com), Tel (210)377-3081, cdavila@ch2m.com. PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT MALMSTROM AIR FORCE BASE, MONTANA. SOL: N/A, DUE: 012400. 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 Commander of Malmstrom Air Force Base (AFB) is seeking interest and information specifically for the potential privatization of the electric, water, and wastewater utility systems at Malmstrom Air Force Base, Montana. OBJECTIVE: Should privatization result, the ownership of the above utility systems at Malmstrom AFB, and operation, 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. Electric: Power is supplied from Montana Power Company (MPC) through one utility-owned 100 kV overhead transmission line to the Base-owned substation. The substation contains the incoming transmission structures, transformers, switches, switchgear, and connecting bus and cables. The substation reduces the voltage to 12.47 kV for distribution throughout the Base. There is an alternate source of power into the Base. A separate 12.47 kV feeder from MPC is available in the event of a 100 kV system failure. This feeder is of limited capacity and load consequently must be reduced to use the circuit. A manual switch is used to connect into the Base distribution system. The primary distribution system consists of three-phase, four-wire line rated at 15 kV from the substation metalclad switchgear. The overhead portion totals approximately 83,400 circuit feet (cf), and the underground portion (in conduit) totals approximately 84,600 cf. The secondary system consists of approximately 70,600 cf of overhead line and 70,000 of underground (in conduit). The system also includes 92 three-phase transformers, 490 single-phase transformers, 21 switches (2-, 3-, and 4-way), 7 reclosers, 50 sectionalizers, and 820 streetlight fixtures. The 1998 annual consumption was approximately 71,000 kWh with a peak demand of approximately 8.3 MW. Natural Gas: Natural gas is supplied by Energy West Inc. through a single utility-owned metering station at a pressure of approximately 50 psig. Gas is distributed to the industrial areas on the Base at this pressure. A utility-owned regulating station reduces the pressure to approximately 15 psig for distribution to other areas. The distribution system is generally looped so that buildings can be fed from at least two different paths. There are approximately 158,900 linear feet (lf) of distribution piping, including mains and service connections. Approximately 90 percent is polyethylene and the remaining is coated steel. Steel gas piping is protected by an impressed current system. Pipe sizes range from -inch to 8-inch. There are approximately seven district regulators in the housing areas. Each building has at least one regulator to lower the gas pressure for equipment and appliance use. There are approximately five revenue meters that are read on a regular basis. Additional meters have been installed on recently constructed facilities for energy management purposes. Peak gas demand is approximately 51,300 thousand cubic feet (MCF) per month. Water: The City of Great Falls, Montana supplies potable water through a 12-inch line to two concrete storage tanks located at grade with a total capacity of 1.7 million gallons (MG). A pump station delivers water from these storage tanks to the distribution system. The pump station includes two 60 horsepower (hp) pumps, one 100 hp pump, and a 175 kW standby generator. A chlorination system utilizing 150-pound cylinders is used to assure adequate residual chlorine levels. The distribution system piping totals approximately 241,500 lf, including mains and service connections. Pipe sizes range from -inch to 20-inch. Pipe materials include cast iron, steel, copper, asbestos cement, and PVC. There are two elevated steel storage tanks of 500,000 and 250,000 gallons. Current peak water demand is approximately 50 MG per month. Wastewater: Wastewater treatment is provided by the City of Great Falls, Montana. Wastewater collection piping totals approximately 137,500 lf of PVC, vitrified clay, and concrete pipe, including mains and service connections. Some of the pipe has been slip-lined. Pipe sizes range from 4-inch to 24-inch. Wastewater collection piping includes both gravity and pressure piping. Wastewater collectedon Base flows to the main lift station where it is pumped to the City of Great Falls collection system. The main lift station consists of two inlet channels with comminutors, bypass channel with manual bar screen, wet well, two 50 hp pumps located in a dry pit adjacent to the wet well, and a 100 kW standby generator. There are three other smaller lift stations located on Base. Two of these lift stations are simplex units and the third is a duplex unit. Wastewater flows average approximately 0.62 million gallons per day (mgd). 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 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) 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 01/03/00 (W-SN412603). (0003)

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