C. H. Guernsey and Company, 5555 North Grand Blvd, Oklahoma City, OK 73112

Y -- PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT DEFENSE DEPOT SAN JOAQUIN TRACY, CALIFORNIA DUE 052300 POC Jared Stigge, (405) 416-8190 (jstigge@chguernsey.com). Secondary contact: Cindy Baker (405) 416-8272 (cbaker@chguernsey.com). E-MAIL: Click here to contact Jared Stigge via email, jstigge@chguernsey.com. C.H. Guernsey and Company, as a contractor to the Defense Logistics Agency, 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". The Defense Logistics Agency is seeking interest and information specifically for the potential privatization of the electrical, natural gas, potable water and wastewater utility systems at Defense Depot San Joaquin Tracy, California. OBJECTIVE: Should privatization result, the ownership, operation, and maintenance of Defense Depot San Joaquin Tracy's electrical, natural gas, potable water and wastewater utility systems will transfer to a utility service provider or providers, along with the obligation to continue to provide utility service for an indefinite and ongoing period. All responsibility for maintaining reliable utility service, including such items as environmental compliance, maintenance costs, major system renovations, construction, equipment, manpower and overhead costs will become the utility service provider's responsibility. It is intended that privatization will ultimately reduce the Defense Logistics Agency's life-cycle costs for operating and maintaining utility systems and services. SYSTEM DESCRIPTIONS: The following information provided is only an estimate of the size, scope and general description of the electrical, natural gas, potable water and wastewater utility systems at the base and is subject to change. Electrical: power is supplied to the base via a 60 kV line and a 12.47 kV distribution level line, a selector switch is used at the base perimeter substation to energize five distribution circuits. While the 12.47 kV line is dedicated to a portion of the south base. The distribution system consists of approximately 8 miles of lines, with approximately 16% being underground and 84% above ground. The overall condition of the system is considered to be good. Natural gas: gas is supplied to the base by Pacific Gas and Electric at one delivery point at the base perimeter and distributed at the base pressure of 5.5 psig. The distribution system consists of approximately 3 miles of underground mains; the main lines consist primarily of wrapped and coated steel pipe. Potable water: water is supplied from groundwater located on Depot grounds. There are currently three active wells, of which two pump water to a 500,000-gallon ground storage tank while the third pumps directly into the distribution system; water is pumped from the ground storage tank into a 250,000 gallon, elevated storage tank. Water is distributed from the booster pump station through approximately 10 miles of mains, which are constructed primarily of cast iron except for recently replaced mains which are polyvinyl chloride. Wastewater: the sanitary sewer system includes approximately 5 miles of sewer mains and a primary liftstation from which the wastewater is pumped to a treatment facility. The average daily output of the secondary treatment facility is 30,000 gallons. Since DDJC Tracy is listed on the National Priority List (NPL/Superfund), a potential bidder must consider the impacts associated with this issue. For the water supply/distribution system, any excess production capacity should not be used for off-site purposes since increased production will affect the water table and will have a direct impact on the remediation efforts being employed to reduce site contamination. The environmental concerns for the wastewater system at DDJC Sharpe arise from the fact that the wastewater and groundwater treatment discharge piping systems are inter-connected and the potential exists for either system to cause a violation of the other systems National Pollution Discharge Elimination System (NPDES) permit. PROCEDURES: This request to interested parties is for gathering information and is a required component of a systematic process to evaluate the interested parties under the Defense Logistics Agency's utilities privatization program. In order to minimize costs both to potentially interested parties and the government, this notice is being issued to determine the interest and feasibility of proceeding with a formal request for proposal. 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 MAY BE FORTHCOMING. Small Business interests shall note the FAR Part 19 Standard Industrial Codes (SIC) and Size Standards for the utility systems identified in this announcement. Some, all, or any combination of the following may apply: SIC/SS: 4911/4 Million (M) Megawatt hours, 4922/$5M, 4923/$5M, 4924/500, 4925/$5M, 4931/$5M, 4932/$5M, 4939/$5M, 4941/$5M, 4952/$5M, 4953/$6M, 4959/$5M, 4961/$9M, 4971/$5M. REQUESTED RESPONSE: Interested parties should provide a statement of interest on company letterhead, not to exceed 20 pages in length. The statement should include as a minimum the following criteria: (1) specific utility system(s) of interest and desired packaging/grouping of utilities to purchase; (2) capability and experience in ownership, operation, maintenance and construction of similar utility systems; (3) financial capacity to purchase, expand and operate the utility systems; (4) statement detailing the understanding of the obligation to serve in regards to continuous utility service; (5) conceptual rate plan (excluding numerical analysis or proposed rates), i.e. will charges for utility service be made from existing rates or from rates developed specifically for service at the individual base; (6) ideas regarding conjunctive metering and billing for service on base (excluding numerical analysis or proposed rates); (7) discussion of your conceptual basis (excluding numerical analysis or proposed prices) for a proposed purchase price (capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, or other); (8) statement detailing your understanding of applicable state and local utilitylaws and regulations and your compliance capability; (9) statement detailing your understanding of any existing franchises and your ability to provide service given these conditions; (10) statement detailing your understanding of federal, territorial and local environmental laws and regulations, and familiarity and experience with environmental compliance procedures and regulations for the state of California and the U. S. Environmental Protection Agency; and (11) business size (large, small, small-disadvantage, 8(a), women-owned.) Elaborate proposals or pricing information is neither required nor desired. Under no circumstances will cost data for the existing systems be provided. Any innovative or new conceptual ideas to achieve the stated objective are encouraged. 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. It should be noted that the RFIs for different Defense Logistics Agency Bases and their utility systems may be issued in the same time frame. A separate response to each RFI is required. Please respond electronically as well as with hard copy. Posted 04/25/00 (W-SN448483). (0116)

Loren Data Corp. http://www.ld.com (SYN# 0132 20000427\Y-0015.SOL)