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COMMERCE BUSINESS DAILY ISSUE OF JANUARY 12,2000 PSA#2514

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

S -- PRIVATIZATION OF UTILITY SYSTEMS AT F.E. WARREN AIR FORCE BASE, WYOMING DUE 020800 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, Tel (210)377-3081, cdavila@ch2m.com. PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT F.E. WARREN AIR FORCE BASE, WYOMING. SOL: N/A, DUE: 020800. 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 F.E. Warren Air Force Base (AFB) is seeking interest and information specifically for the potential privatization of the electric, water, and wastewater utility systems at F.E. Warren Air Force Base, Wyoming. OBJECTIVE: Should privatization result, the ownership of the above utility systems at F.E. Warren 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: F.E. Warren AFB receives approximately 30 percent of its electrical supply from Western Area Power Administration (WAPA) and approximately 70 percent from Rocky Mountain Generation Company (RMGC). In addition, Cheyenne Light, Fuel and Power (CLFP) supplies power to a few small facilities such as the back gate, stables, and antenna facility. Both WAPA and RMGC supply power to the Base through a WAPA-owned 115-kilovolt (kV) transmission line into the Base-owned substation. The substation contains a 115 kV ring bus with SF6 circuit breakers, transformers, and switchgear. The substation is currently operated by WAPA under contract to the Base. The 115 kV ring bus feeds two 115-13.8 kV transformers. The electrical distribution system consists of three-phase, three-wire line rated at 15 kV. The primary overhead portions total approximately 78,850 circuit feet (cf), and the primary underground portions total approximately 93,000 cf. The system also includes 89 three-phase transformers, 263 single-phase transformers, 551 utility poles, 40 switches (2-, 3-, and 4-way), 66 utility vaults, and 1,097 streetlight fixtures. Annual power consumption at F.E. Warren AFB is approximately 43,000,000 kWh with a peak demand of approximately 7.11 MW, occurring in July 1999. Natural Gas: Natural gas is supplied to F.E. Warren AFB by CLFP through one utility-owned metering station at 30 to 35 psig. The Base has a propane plant that is used as an alternate fuel source and enables the Base to purchase natural gas on an interruptible basis. The propane plant is not being considered for privatization. There are two Base-owned district regulator stations that reduce the pressure to 9 psig for distribution on the Base. The gas system includes approximately 110,000 linear feet (lf) of polyethylene (PE) piping and 31,000 lf of coated carbon steel piping. The PE piping ranges from -inch to 8-inch. The steel piping ranges from 2-inch to 8-inch. The steel piping is protected with a sacrificial anode cathodic protection system. Each building has at least one regulator to lower the gas pressure for equipment and appliance use. There are approximately twelve revenue meters that are read on a regular basis. Approximately 40 additional meters have been installed for energy management purposes. Peak gas demand is approximately 67,000 thousand cubic feet (MCF) per month. Water: The City of Cheyenne Board of Public Utilities (BOPU) supplies potable water to F.E. Warren AFB through 14 connections. No additional treatment is performed on Base. Each connection has a utility-owned meter. Five of these connections are trunk mains with Base-owned pressure reducing valve (PRV) stations. Nine smaller connections supply potable water to remote areas of the Base. The distribution system piping totals approximately 252,445 lf, including mains and service connections. Pipe sizes range from 1-inch through 16-inch. Pipe materials include PVC, ductile iron, cast iron, steel, and asbestos cement. Current water demand averages 32 million gallons (MG) per month. Wastewater: Wastewater treatment is provided by the City of Cheyenne BOPU. Wastewater collection piping totals approximately 150,960 lf of collection piping, including mains and service connections. Pipe sizes range from 4-inch to 15-inch. Pipe materials include PVC, vitrified clay, and cast iron. The wastewater collection system includes one lift station consisting of a wet well, two 20 hp pumps located in a dry pit adjacent to the wet well, and a 100 kW emergency generator. Wastewater flows average approximately 0.56 million gallons per day. PROCEDURES: This request to interested parties is for gathering information and is a required componentof 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 lessdepreciation, 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 01/09/00 (W-SN414393). (0009)

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