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COMMERCE BUSINESS DAILY ISSUE OF FEBRUARY 25,2000 PSA#2544

Defense Energy Support Center, 8725 John J. Kingman Rd., Suite 4950, Ft Belvoir, VA 22060-6222

S -- SOURCES SOUGHT FOR PRIVATIZATION OF AIR NATIONAL GUARD UTILITY SYSTEMS FOR AIR NATIONAL GUARD LOCATIONS IN NEW JERSEY, NEW YORK, AND PENNSYLVANIA POC Lawrence T. Fratis, Defense Energy Support Center, (DESC-APP), Contracting Officer, WEB: For future Privatization solicitation information, http://www.desc.dla.mil/main/a/electric/priv.htm. E-MAIL: For additional information or clarification, llombard@desc.dla.mil or vvelez@desc.dla.mil. The Defense Energy Support Center (DESC), in conjunction with the Office of the Air Force Civil Engineer, the Air National Guard Civil Engineer, and the Air National Guard Readiness Center, 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" for Utility Privatization of the Listed Air National Guard Utility Systems throughout the Continental United States. The potential privatization actions will include transfer of ownership, operation and maintenance, and the obligation to serve. The Air Force will not transfer ownership of all land or any land lease interest for those installations which are situated on leased property and will grant easements and leases, with concurrence of the underlying leaseholder where applicable, for access to land associated with each utility system. OBJECTIVE: Should privatization occur, the ownership of the entire utility plant and equipment to include, all capital investments, operation, maintenance and repair responsibilities, shall transfer to a publicly or privately owned utility provider. All responsibility for maintaining reliable service, including such items as environmental compliance, operation, maintenance, major systems renovation, construction, equipment, manpower and overhead shall be the responsibility of the utility provider. INSTALLATION AND UTILITY SYSTEMS DESCRIPTIONS: Note: (1). All technical data and information listed below is to be considered either an estimated quantity or an approximate order of magnitude. This data was developed using data provided from the Air National Guard Real Property Records, Real Property Detail Listing Report 7115 and DESC is not responsible for the accuracy of the information at each site-specific installation. Companies responding to this notice of interest are responsible for verification of all inventory data. (2). Companies responding to this notice of interest can either respond to interest in one utility system at one site specific installation or any combination of utility systems and locations thereof. Atlantic City International Airport, NJ (AQRC): EL Installation is located at the Atlantic City International Airport, Atlantic City, NJ. The airport is located 10 miles west of the city. Installation Description: 40 Buildings (341,829 SF) Land Agreement: 268 acres of fee owned (FAA) land, Permitted from FAA to AF, Licensed to State for Air National Guard purposes Description of Facilities: The utility systems consist of approximately the following utility distribution and collection systems: a. Electrical Distribution System: -- Overhead Primary Electrical Distribution Lines: 7,100 Linear Feet -- Underground Primary Electrical Distribution Lines: 11,648 Linear Feet -- Underground Secondary Electrical Distribution Lines: 6,270 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity -- Other associated miscellaneous equipment Francis S. Gabreski international Airport, NY (WKVB): EL, W: Installation is located at the Francis S. Gabreski International Airport at West Hampton Beach, Long Island, New York. Installation Description: 34 Buildings (311,985) Lease Agreement: 88 acres leased, expiration date is 31 Mar 2041 Description of Facilities: The utility systems consist of approximately the following utility distribution and collection systems: a. Electrical Distribution System: -- Overhead Primary Electrical Distribution Lines: 6,270 Linear Feet -- Overhead Secondary Electrical Distribution Lines: 195 Linear Feet -- Underground Primary Electrical Distribution Lines: 4,130 Linear Feet -- Underground Secondary Electrical Distribution Lines: 4,122 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 4,696 Linear Feet -- Water Distribution System includes service connections; service piping and fire hydrants -- Other associated miscellaneous equipment Syracuse Hancock International Airport, NY (HAAW): EL, NG, W, WW: Installation is located at the Syracuse International Airport, NY. The airport is located 5 miles northeast of the city. Installation Description: 64 Buildings (492,272 SF) Land: 329.52 acres of fee owned Description of Facilities: The utility systems consist of approximately the following utility distribution and collection systems: a. Electrical Distribution System: -- Overhead Primary Electrical Distribution Lines: 90 Linear Feet -- Underground Primary Electrical Distribution Lines: 8,788 Linear Feet -- Underground Secondary Electrical Distribution Lines: 21,524 Linear Feet -- Substations and Switching Stations: 150 KVA -- Transformers: Undetermined Quantity b. Natural Gas Distribution System: -- 11,622 Linear Feet of gas distribution piping -- Master Meters Various Locations c. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 7,606 Linear Feet -- Water Distribution System includes service connections; service piping and fire hydrants -- Water Wells: 5 KG -- Other associated miscellaneous equipment d. Waste Water Collection System: -- No Waste Water Treatment Plant. -- Waste Water Collection System: 12,699 Linear Feet -- Waste Water Pump Stations: Undetermined Quantity Schenectady County Airport, NY (VBDZ): EL, W, WW: Installation is located at the Schenectady County Airport, Scotia, NY. The airport is located 2 miles north of Schenectady. Installation Description: 38 Buildings (353,366) Lease Agreement: 119 acres leased, expiration date is 30 Jun 2042 Description of Facilities: The utility systems consist of approximately the following utility distribution and collection systems: a. Electrical Distribution System: -- Overhead Primary Electrical Distribution Lines: 2,307 Linear Feet -- Underground Primary Electrical Distribution Lines:2,270 Linear Feet -- Underground Secondary Electrical Distribution Lines: 205 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 12,904 Linear Feet -- Water Distribution System includes service connections; service piping and fire hydrants (24) -- Other associated miscellaneous equipment c. Waste Water Collection System: -- Sewage Treatment and Disposal: 375 KG (to be eliminated) -- Waste Water Collection System: 8,831 Linear Feet (to be modified) -- Waste Water Pump Stations: 136 Square Feet Stewart International Airport, Newburgh, NY (WHAY): EL, NG, W, WW: Installation is located at the Stewart International Airport, Newburgh, NY, 15 miles north of US Military Academy at West Point. Installation Description: 36 Buildings (757,234 SF) Lease Agreement: 268 acres leased, expiration date is 31 Mar 2033 Description of Facilities: The utility systems consist of approximately the following utility distribution and collection systems: a. Electrical Distribution System: -- Underground Primary Electrical Distribution Lines: 17,114 Linear Feet -- Underground Secondary Electrical Distribution Lines: 5,839 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Natural Gas Distribution System: -- Gas Distribution Piping: 8,833 Linear Feet -- Master Meters Various Locations c. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 2,752 Linear Feet -- Water Distribution System includes service connections; service piping and fire hydrants -- Other associated miscellaneous equipment d. Waste Water Collection System: -- No Waste Water Treatment Plant -- Waste Water Collection System: 9,654 Linear Feet -- Industrial Waste Water Collection System: 6,055 Linear Feet -- Waste Water Pump Stations: Undetermined Quantity Harrisburg International Airport, PA (SHTQ): EL, W, WW: Installation is located at the Harrisburg International Airport, PA. The airport is located 10 miles east of the Harrisburg, PA. Installation Description: 36 Buildings (295,108 SF) Lease Agreement: 39 acres leased, expiration date is 30 Jun 2042 Description of Facilities: The utility systems consist of approximately the following utility distribution and collection systems: a. Electrical Distribution System: -- Underground Primary Electrical Distribution Lines: 2,814 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 4,425 Linear Feet -- Water Distribution System includes service connections; service piping and fire hydrants -- Water Supply Building: 170 Square Feet -- Other associated miscellaneous equipment c. Waste Water Collection System: -- No Waste Water Treatment Plant. -- Waste Water Collection System: 2,998 Linear Feet -- Waste Water Pump Stations: 1,538 Square Feet PROCESS: This request is to gather information from interested parties and is an essential step in determining market interest for the privatization of the utility systems at the affected installations. In order to minimize costs both to potentially interested parties and the government, this notice is issued to determine market interest and feasibility as well as determining marketing strategies for privatizing utility systems. 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 (RFP) may be forthcoming. Interested parties should provide a statement of interest on company letterhead. The statement of interest must not exceed a total length of 15 pages plus 1 page per type of utility system of interest. Parties may express interest in a range of ownership possibilities, from a single utility system to interest in all utilities systems. The statement shall include as a minimum, the following information: (1) capability and experience in the ownership, operation and maintenance of similar systems; (2) financial capability to purchase, upgrade, expand, operate and maintain utility systems; (3) specific utility system(s) of interest and desired bundling of utilities systems to purchase; (4) conceptual rate plan (i.e., will charges for utility service be made from existing rates or from rates developed specifically for service at the individual installation(s); (5) discussion of your conceptual basis for a proposed purchase price (capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, or other); (6) understanding of the federal, state and local environmental laws and regulations and familiarity and experience with environmental compliance procedures and regulations for the applicable states and US Environmental Protection Agency Regions. SITE VISIT AND DATA: Neither a site visit nor the provision of additional data on the utility systems is considered necessary for the preparation and submittal of statement of interest. 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. DUE DATE: Statements of interest must be submitted to Defense Energy Support Center (DESC-APP) by 27 March 2000 by 3:00 p.m. Eastern Standard Time. Sources may address responses to: Defense Energy Support Center, 8725 John J. Kingman Rd., Suite 4950, ATTN: L. Lombard, DESC-APP, Room 3830, Ft. Belvoir, VA 22060-6222. Posted 02/23/00 (W-SN427908). (0054)

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