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COMMERCE BUSINESS DAILY ISSUE OF MARCH 1,2000 PSA#2547

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 MINNESOTA, N. & S. DAKOTA, AND WISCONSIN POC Lawrence T. Fratis, (DESC-APP), Contracting Officer, (703)767-8130; Lisa Lombard, Contract Specialist, (703) 767-9404. 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. Duluth International Airport, MN (FMKM): EL, NG, W, WW: The installation is located at the Duluth International Airport, which is 5 miles northwest of Duluth, MN. Installation Description: 63 Buildings (474,414 SF) Lease Agreement: 193 acres leased; expires 30 Jun 2038 and 97 acres fee-owned. 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: 11,479 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Natural Gas Distribution System: -- Gas Distribution Piping: 4,950 Linear Feet -- Master Meters Various Locations c. Water Distribution System: -- Water Distribution System Mains: 8,138 Linear Feet -- Water Distribution System includes service connections; service piping and fire hydrants (12( -- Water Storage Tank: 60 KG -- Other associated miscellaneous equipment d. Waste Water Collection System: -- Sanitary Treatment and Disposal: 1000 KG -- Waste Water Collection System: 7,568 Linear Feet -- Waste Water Pump Stations: 2 @ 50 Square Feet Each Hector International Airport, ND (KKGA): EL, W, WW: Hector International Airport is located in Fargo, ND, and is the airport that serves the city. Installation Description: 44 Buildings (417,451 SF) Lease Agreement: 241 acres leased expires 31 Dec 2022 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: 9,387 Linear Feet -- Underground Secondary Electrical Distribution Lines: 2,976 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantityb. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 32,401 Linear Feet -- Water Distribution System includes service connections; service piping and fire hydrants -- Other associated miscellaneous equipment c. Waste Water Collection System: -- No Waste Water Treatment Plant -- Waste Water Collection System: 17,284 Linear Feet -- Septic Tank: 1 KG -- Waste Water Pump Stations: 350 Square Feet Joe Foss Field, SD (LUXC): EL, W, WW: Joe Foss Field serves Sioux Falls, SD. Installation Description: 37 Buildings (391,979 SF) Lease Agreement: 100 acres leased; expires 30 Jun 2055 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: 10,508 Linear Feet -- Overhead Secondary Electrical Distribution Lines: 8,633 Linear Feet -- Underground Primary Electrical Distribution Lines: 6,299 Linear Feet -- Underground Secondary Electrical Distribution Lines: 7,282 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 10,355 Linear Feet -- Water Distribution System includes service connections; service piping and fire hydrants (29) -- Other associated miscellaneous equipment c. Waste Water Collection System: -- No Waste Water Treatment Plant -- Waste Water Collection System: 10,572 Linear Feet -- Pump Station: 108 Square Feet Truax Field Dane County Regional Airport, WI (XGFG): WW: Truax Field serves Madison, WI, and lies 2 miles north of the city. Installation Description: 58 Buildings (726,055 SF) Lease Agreement: 93 acres leased expires 3 Oct 3032 Description of Facilities: The utility system consist of approximately the following utility distribution and collection system: Waste Water Collection System: -- Industrial Waste Treatment: 1001 KG -- Waste Water Collection System: 234 Linear Feet -- Pump Station: 50 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 30 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 02/28/00 (W-SN429051). (0059)

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