Department of the Air Force, Air Force Space Command, 45CONS (Bldg 423), 1201 Edward H White II St MS 7200, Patrick AFB, FL, 32925-3238

S -- PRIVATIZATION OF ELECTRICAL UTILITY SYSTEMS AT PATRICK AFB/CAPE CANAVERAL AFS, FL SOL F08650-00-R-0313 DUE 031700 POC Linda Greaves, Contracting Officer, Phone 321-494-5229, Fax 321-494-6193, Email linda.greaves@patrick.af.mil -- Linda Greaves, Contracting Officer, Phone 321-494-5229, Fax 321-494-6193, Email WEB: Visit this URL for the latest information about this, http://www.eps.gov/cgi-bin/WebObjects/EPS?ACode=P&ProjID=F08650-00-R-0 313&LocID=516. E-MAIL: Linda Greaves, linda.greaves@patrick.af.mil. PART: U.S. GOVERNMENT PROCUREMENTS SUBPART: SERVICES CLASSCOD: S -- Utilities and Housekeeping Services OFFADD: Department of the Air Force, Air Force Space Command, Patrick AFB 45th Contracting Squadron, 1201 Edward H. White II St., Patrick AFB, FL, 32925-3238 SUBJECT: S -- PRIVATIZATION OF ELECTRICAL UTILITY SYSTEMS AT PATRICK AFB/CAPE CANAVERAL AS, FL SOL F08650-00-R-0313 DUE 031700 POC Linda Greaves, Contract Officer, Phone 321 494-5229, Fax 321 494-6193, Email linda.greaves@patrick.af.mil This proposed contract action is for privatization of electrical utility systems at Patrick Air Force Base (PAFB) and Cape Canaveral Air Force Station (CCAS), FL for which the Government intends to solicit and negotiate only with Florida Power and Light (FPL) under the authority of FAR 6.302. Interested persons may identify their interest and capability to respond to the requirement or submit proposals. This notice of intent is not a request for competitive proposals. However, all proposals received withinfifteen days after date of publication of this synopsis will be considered by the Government. A determination by the Government not to compete this proposed contract based upon responses to this notice is solely within the discretion of the Government. Information received will normally be considered solely for the purpose of determining whether to conduct a competitive procurement. The following facts warrant the need to pursue this action on a sole source basis: FPL currently provides comprehensive electric utility service to the 45 SW at PAFB and CCAS. At PAFB, FPL provides service to two substations, which are the master-metered delivery points. FPL owns and operates the 115 kV overhead transmission lines and equipment in the substations, as well as the 115 kV/13.2 kV substation transformers. The substation is leased to PAFB, which qualifies PAFB for a reduced rate under the transmission tariff. PAFB owns and operates a 13.2 kV distribution switching station. At CCAS FPL provides service to three substations, which are the master-metered delivery points. FPL owns and operates the 115 kV overhead transmission lines that provide service to the CCAS owned substation. The 45 SW owns and operates the 115 kV/13.2 kV substation transformers and all downstream 13.2 kV distribution equipment. FPL_s ser-vice is provided under Utility Service Contract No. F08650-79-D-0015. The Secretary of Defense in November 1997 announced a comprehensive Defense Re-form Initiative, which included a directive to privatize all utility systems, with limited ex-ceptions. The policy defines privatization as a transfer of an installation_s infrastructure to a public/private sector organization that takes over responsibility to own, maintain, operate and replace system facilities as necessary to meet an installation_s current and future requirements. Subsequent Defense Reform Initiative Directives (DRIDs) provided further policy guidance, including a requirement to transfer qualifying privatized systems by September 2003. The Air Force in September 1998 issued its Utilities Privatization Policy and Guidance. The policy per 10 USC Section 2688, Utility System Conveyance Authority, provides that transferring utility system ownership to the appropriate local utility or other qualified en-tity must result in reliable service. FPL is a public utility within the meaning of section 366.02(1) of the Florida Statutes. As such, FPL is subject to the regulatory jurisdiction of the Florida Public Service Commission (FPSC). The FPSC regulates rates and services. FPL is the exclusive provider of electric utility service within a large portion of the State of Florida, including the geographic area comprising the 45 SW in Florida, pursuant to a series of territorial agreements approved by the FPSC. FPL provides bundled service that includes electric generation, transmission and distribution compo-nents. The transmission component is for the use of FPL_s high-voltage electric grid that connects generation resources to local distribution facilities. The distribution component is for the delivery of power to end-user customers. The 45 SW is eligible for special service arrangements because it is the owner of the electrical distribution system and FPL_s cus-tomer of record. Special service arrangements will be preserved as long as: (a) the 45 SW continues to own the downstream electric distribution system: or (b) the downstream system is owned by FPL. If the distribution system were owned by an entity other than FPL or the 45 SW, the 45 SW would no longer be eligible for or obtain the benefits of service under the special rates, contracts, and agreements. Insofar as the contractual and non-contractual special service agreements provide a substantial economic benefit to the government they are considered to constitute a minimum service requirement. Under Florida Administrative Code rule 25-6.003(2) the owner of the electrical distribution system would be FPL_s cus-tomer. FPL provides electric utility service to the 45 SW under a Utility Service Contract and separate special service agreements required to maintain the reliability, quality, and integrity of transmission electrical service to 45 SW installations. The collective impact of the current service contract and special agreements result in a reduction of cost for purchased power and enhanced operational capability. The special service arrangements are as follows: 1) No Switch/No Maintenance during Range Critical Periods. Under current launch operational procedures and based on the fact that the 45 SW is the owner of the electrical distribution system, FPL reschedules all planned Transmission System Maintenance and Switching operations. The 45 SW complex receives service form an extensive FPL transmission network, recurring maintenance and system replacements are critical for FPL to provide quality reliable service. FPL coordinates all maintenance schedules for this portion of the system with 45 SW Range Operations. FPL will not schedule or perform work that may compromise the service to 45 SW during critical periods these periods could extend up to a one-month when launch operations are in progress. This agreement requires a significant measure of participation and coordination between 45 SW, NASA, and FPL. Without this special agreement FPL is free to perform switching and maintenance at any time deemed necessary by FPL. 2) Demand Billing Adjustment. FPL adjusts the monthly Demand Charge on USAF billing in the event of an internal load shift between substations. A load shift between substations may be the result of scheduled maintenance or an unplanned outage. The load shift results in an increase in the billed meter kW demand. FPL is under no obligation to provide this adjustment but does so because the 45SW is the owner of the distribution system. 3) Power Generation Interconnection Agreement. Under separate contract with FPL the 45 SW is permitted to operate a 7.5 MW generating plant in parallel with FPL_s transmission system. This agreement eliminates the potential for intermittent power outages when critical facilities are operating under backup power. Any type of power fluctuation would result in a shutdown of various range critical equipment. The CCAFS Range Operations and Control Center (ROCC) requires continuous, uninterrupted, quality power. Standard Operating Procedures require the backup power generators operation during launch activity and severe weather alerts, without parallel operations the generators are operated in standby mode. This agreement and ability to operate the generating plant in parallel with FPL_s transmission system would be voided if an entity other than FPL or the USAF became the owner operator of the electrical distribution system. 4) Commercial/Industrial Load Control (C/ILC) Rate. The Interconnection Agreement qualifies the 45 SW for 7.5 MW of load under a special C/ILC rate. The 7.5 MW generating plant was constructed under a Demand-Side Management Basic Ordering Agreement that allows 45 SW to pay for the installation with the savings from the C/ILC rate over a ten year period. The Agreement and Rate would terminate upon the transfer of ownership of the electrical distribution facilities to another entity. The result would be a loss of savings and requirement of immediate payment for the generating plant installation. 5) Substation Lease for Transmission Rate Qualification. The PAFB substations (2) are owned and operated by FPL. The current service voltage to PAFB is 13.2 kV, this type of service voltage is classified under a Distribution Rate. FPL leases the two substations to the Gov_t in order to allow the service to be received and billed at a Transmission Rate (115kV and 138kV). Only one substation lease is covered under the current Utility Service Contract. The 45 SW benefits from an annual cost reduction for service under the Transmission Rate tariff as compared to service under the Distribution Rate tariff. In the event PAFB loses Customer of Record status or the utility service contract is renegotiated, PAFB would no longer receive the Transmission Rate tariff. Government ownership of the distribution system with FPL service exempts the 45 SW from Florida sales tax. Responses to this notice as well as any questions should be directed to 45 CONS/LGCA, Attention of Ms. Linda S. Greaves, 1201 Edward H. White St II, MS 7200, Patrick AFB, FL 32925-3238. Phone (321) 494-5229. Posted 03/07/00 (D-SN432017). 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