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COMMERCE BUSINESS DAILY ISSUE OF APRIL 17,2000 PSA#2580

Department of the Air Force, Direct Reporting Units, 10 ABW/LGC, 8110 Industrial Drive, Suite 200, USAF Academy, CO, 80840-2315

S -- PRIVATIZATION OF THE WASTEWATER COLLECTION AND TREATMENT SYSTEM AT THE USAF ACADEMY, COLORADO SOL F05611-00-R-0001 DUE 041800 POC Leslie Ryan, Contracting Officer, Phone (719)333-8267, Fax (719)333-2892, Email leslie.ryan@usafa.af.mil WEB: Visit this URL for the latest information about this, http://www.eps.gov/cgi-bin/WebObjects/EPS?ACode=P&ProjID=F05611-00-R-0001&LocID=479. E-MAIL: Leslie Ryan, leslie.ryan@usafa.af.mil. This proposed contract action is for privatization of the WASTEWATER COLLECTION AND TREATMENT SYSTEM at the U.S. Air Force Academy (USAFA), CO for which the Government intends to solicit and negotiate only with Colorado Springs Utilities (CSU) under the authority of FAR 6.302. This determination was made based on the USAFA's requirement as stated in the Request For Information (RFI) published 17 July 99 that the Academy's wastewater treatment system qualify as a "Publicly-Owned Treatment Work (POTW)" under the Resource Conservation and Recovery Act (RCRA) and the ability to convert potable water purchases from CSU to non-potable water uses (e.g., the productive use of treated discharges from the Government-owned wastewater treatment plant). The following facts warrant the need to pursue this action on a sole source basis: The USAFA's wastewater collection and treatment system currently qualifies as a Federally-owned Treatment Works (FOTW) which allows it to take advantage of the RCRA mixed-sewage exclusion set forth in RCRA section 3023(a). This section provides that if certain conditions are met, FOTWs are essentially exempted from RCRA regulation based on the domestic sewage exclusion to the definition of solid waste found in 40 CFR 261.4 as implemented by 6CCR1007-3 Section 261.4. The current operation of the USAFA wastewater collection and treatment system commingles (mixes) domestic sewage and other waste from various locations that include housing, motor pool, photolab and chemistry labs located throughout the installation. There is a similar mixed waste exclusion that is available to Publicly-owned Treatment Works (POTW) . Under 40 CFR section 261.4(a)(1)(ii) as implemented by 6CCR1007-3 Section 261.4, mixtures of sanitary wastes and other wastes that pass through a sewer system to a POTW are excluded from RCRA regu-lation. A Publicly-owned Treatment Works " means any. . .system used in the treatment (in-cluding recycling and reclamation) of municipal sewage or industrial wastes of a liquid nature which is owned by a "State" or "municipality" (40 CFR 122.2). The City of Colorado Springs is a Colorado home rule city and a municipal corporation established and organized under the laws of the State of Colorado. The City of Colorado Springs owns and operates CSU. CSU is a public utility under both C.R.S. Section 40-1-103 and the Colorado Springs City Code. As a result, ownership of the wastewater collection and treatment system by the City of Colorado Springs and its enterprise, CSU, would qualify for the RCRA mixed-sewage exclusion under 40 CFR 261.4, allowing its classification as a POTW. A privately-owned treatment works can-not qualify for the RCRA mixed-waste exclusion. CSU is also the only entity that can continue the USAFA's current practice of reusing treated water (non-potable) for irrigation purposes. CSU provides water service beyond the municipal limits of Colorado Springs under C.R.S. Section 31-35-402 and the City of Colorado Springs has granted CSU an exclusive water serv-ice territory, for both potable and non-potable water, that includes the USAFA property under the authority of Section 12-1-107.1 of the City Code and City Ordinance #99-123. CSU pursu-ant to this authority, voluntarily and as an accommodation to the USAFA, permits the reuse of potable water CSU sells to the USAFA for non-potable purposes. The loss of the right to re-use treated water would require the purchase of potable water from CSU and the extensive re-configuration of the current distribution system that collects, stores, and distributes this non-potable water for irrigation and other non-potable water uses. In order for privatization of wastewater treatment and distribution services to be economically feasible, as required by De-fense Reform Initiative Directive (DRID) No. 49, Privatization of Defense Utility Systems, CSU is the only source who can provide those services without subjecting the government to the hazardous waste treatment, storage, and disposal requirements of RCRA as set forth in 40 CFR Part 264 and the prohibitive cost to redesign and reconfigure the USAFA wastewater system. Note: A contract will not be awarded to CSU unless the Government can certify, at the end of the negotiation process, that it is economical to privatize. Responses to this notice as well as any questions should be directed to Ms. Leslie Ryan at 10 ABW/LGCW, 8110 Indus-trial Drive, Suite 102, USAF Academy CO 80840-2315. Phone 719-333-8267. Posted 04/13/00 (D-SN444562). (0104)

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