Defense Energy Support Center, 8725 John J. Kingman Rd., Suite 4950, Ft Belvoir, VA 22060-6222

S -- PRIVATIZATION OF THE NATURAL GAS DISTRIBUTION SYSTEM AT FT. BLISS, TEXAS POC Lisa Lombard, Contract Specialist (703) 767-9404; or Jacob Moser, Contracting Officer (703)767-8333. WEB: Privatization Solicitation Information, http://www.desc.dla.mil/main/a/priv/priv.htm. E-MAIL: For additional information or clarification, llombard@desc.dla.mil or jmoser@desc.dla.mil. The proposed contract action is for the privatization of the Government Owned natural gas distribution system at Ft. Bliss, TX for which the Government intends to solicit and negotiate with only one source, Southern Union Gas Company, under the authority of FAR 6.302. The Government Owned natural gas distribution system at Ft. Bliss, TX consists of approximately 77.94% of the Installation's entire natural gas distribution system. Privatization will transfer to the private sector the responsibility for the ownership, operation, maintenance, and repair of the Government-owned utility system. The other 22.06% of the system has been previously privatized and is owned by Southern Union Gas Company. The remaining system to be privatized is located on the designated Fort Bliss cantonment area and the McGregor Range located north of the Main Post. The total length of the natural gas distribution system to be privatized is 444,880 linear feet. Pipe sizes are up to eight inches in diameter. The use of other than full and open competition for this contracting action is authorized by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The justification for the use of other than full and open competition is based on technical, safety, and engineering aspects of the system ownership and operation. Southern Union Gas Company owns an integral portion of Fort Bliss' natural gas distribution system with tap points and connections fully integrated throughout the entire distribution system. The privatized and non-privatized portions of the natural gas distribution system are interlaced and commingled. In multiple areas, Southern Union Gas Company owned piping is connected at each end with Army owned piping. The Government feels it appropriate to solicit and negotiate with only Southern Union Gas Company, for the following reasons: Separate contracts (multiple contractors) would complicate lines of responsibility, increase response time, and adversely impact safety. Gas distribution system safety and system reliability are the most critical concerns of the Army. Ownership, operation, and maintenance of the Fort Bliss natural gas system infrastructure by a single company will ensure that proper procedures can be developed to detect, identify, and prioritize hazardous or potentially hazardous conditions on the installation before they result in injury, property damage, or service interruption. Commingled ownership of an integral system would also forseeably lead to disputes and delay in problem resolution. And lastly, it is likely that award to any other source would result in a substantial duplication of costs to the Government. See Note 22. For any additional information contact: Lisa Lombard, (703) 767-9404; or Jacob Moser, (703) 767-8333. Posted 07/06/00 (W-SN471919). (0188)

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