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COMMERCE BUSINESS DAILY ISSUE OF MARCH 2,2000 PSA#2548

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 ARIZONA, NEVADA,AND UTAH 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. Sky Harbor International Airport, AZ (VTNB): EL, NG, W, WW: Sky Harbor Airport serves the City of Phoenix, AZ. Installation Description: 21 Buildings (236,175 SF) Lease Agreement: 50 acres leased expires 30 Jun 2048 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: 4,641 Linear Feet -- Overhead Secondary Electrical Distribution Lines: 720 Linear Feet -- Underground Primary Electrical Distribution Lines: 2,217 Linear Feet -- Underground Secondary Electrical Distribution Lines: 2,746 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Natural Gas Distribution System: -- Gas Distribution Piping: 10,532 Linear Feet -- Master Meters Various Locations c. Water Distribution System: -- Water Distribution System Mains: 8,409 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: 12,784 Linear Feet -- Industrial Waste System: 297 Linear Feet -- Waste Water Pump Stations: Undetermined Quantity Tucson International Airport, AZ (XHEA): EL, NG, W, WW: The installation is located at Tucson International Airport. It is across town from Davis Monthan AFB. Installation Description: 35 Buildings (533,493 SF) Lease Agreement: 2 acres leased expires 14 Oct 2006 and 91 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: 37,211 Linear Feet -- Underground Secondary Electrical Distribution Lines: 17,511 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Natural Gas Distribution System: -- Gas Distribution Piping: 9,795 Linear Feet -- Master Meters Various Locations c. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 2,395 Linear Feet; Water Supply Mains: 14,317 Linear Feet -- Water Distribution System includes service connections; service piping and fire hydrants -- Water Supply Building: 200 SF -- Other associated miscellaneous equipment d. Waste Water Collection System: -- No Waste Water Treatment Plant -- Waste Water Collection System: 12,401 Linear Feet -- Industrial Waste System: 273 linear Feet -- Waste Water Pump Stations: 100 Square Feet Reno-Tahoe International Airport May Field, NV (UCTL): EL, W, WW: May Field is located at the Reno-Tahoe International Airport, which is 5 miles southeast of Reno, NV. Installation Description: 36 Buildings (302,541 SF) Lease Agreement: 60 acres leased expires 1 Jan 2054 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: 6,240 Linear Feet -- Overhead Secondary Electrical Distribution Lines: 2,821 Linear Feet -- Underground Primary Electrical Distribution Lines: 903 Linear Feet -- Underground Secondary Electrical Distribution Lines: 10,768 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 5,872 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: 6,956 Linear Feet -- Industrial Waste System: 336 Linear Feet Salt Lake City International Airport, UT (USEB): EL, W, WW: The installation is located at the Salt Lake International Airport, which is 3 miles west of Salt lake City, UT. Installation Description: 63 Buildings (407,775 SF) Lease Agreement: 135 acres leased expires 30 Sep 2037. 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: 5,980 Linear Feet -- Overhead Secondary Electrical Distribution Lines: 3,320 Linear Feet -- Underground Primary Electrical Distribution Lines: 2,160 Linear Feet -- Underground Secondary Electrical Distribution Lines: 3,401 Linear Feet -- Substations and Switching Stations: Undetermined Quantity -- Transformers: Undetermined Quantity b. Water Distribution System: -- Water Distribution System Mains (No Treatment Plant): 17,758 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: 14,570 Linear Feet -- Industrial Waste System: 2,160 Linear 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 31 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 02/29/00 (W-SN429538). (0060)

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