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COMMERCE BUSINESS DAILY ISSUE OF JULY 20,2000 PSA#2646

Directorate of Contracting, Bldg 4022, Fort Knox, Ky 40121-5000

S -- PRIVATIZATION OF NATURAL GAS UTILITY DISTRIBUTION SYSTEM, FORT KNOX KY DUE 081100 POC Steven Fries, Phone 502-624-8043; Fax 502-624-7165 E-MAIL: Click here to contact the contracting officer via, friess@ftknox-emh3.army.mil. The Government is seeking responsible potential sources interested in the privatization of the U.S. Army-owned natural gas distribution system at Fort Knox KY. Fort Knox covers about 110,000 acres and is located 35 miles south of Louisville KY. The installation is predominantly an area of exclusive Federal jurisdiction. Privatization is defined as the transfer of ownership and opeations and maintenance responsibilities, to include such items as environmental c ompliance, maintenance costs, major system renovations and upgrades, consruction, equipmentand manpower, of the Governmenet-owned distribution system to a municipal, private, regional, district or cooperative utility company or to another entity. Fort Knox currently receives natural gas supply from the spot market by an area-wide Defense Energy Services contract delivered through Louisville Gas & Electric to the Government-owned distribution system through two master-metered dellivery points that are served from 6-inch to 8-inch high pressuretransmission lines. The Government-owned natural gas distribution system consists of about 100 miles of gas lines that range from less than 2 inches to 12 inches in diameter, 1800 building services and 900 main valves. About 70 p ercent of the system consists of polyethylene pipe that was installed during the last 16 years to replace steel piping. The steel piping which account for the remaining 30 percent of the system has an average age of 40 to 50 years. The system is in fairly good condition given its age and confirguration. Fort Knox is a weather-sensitive customer that consumes about 1,500,000 decatherms of natural gas annually. This request for information (RFI) is a component of a systematic process to implement the Department of Army's utilities privatization program. Should insufficient credible interest or responsive capability be identified for a privatiztion action, it is likely that no formal solicitation will be issued, otherwise a formal request for proposals (RFP) may be forthcoming. The statement of interest submitted shall adress all of the following general criteria, to include at a minimum: (1) capability and experience in the ownership, operation, expancision and maintenance of similar retail or other Government service systems; (2) financial capability to purchase, e xpand, maintain, and operate the utility system; (3) a statement expressing a willingness and undestanding of an obligation to provide continuous tuility serice; (4) undestanding of any applicable state or local utility law, capability of complying with such law and to initiate the service within a reasonable time after contract award; and (5)understanding of the federal, state, and local environmental laws and regulations; and familiarityand experience with environmental compliance procedures and regulations. A statement of interest should not exceed 15 pa ges in length. Send statements of interest to the Directorate of Contracting, Building 4022, Fort Knox KY 40121-5000 no later than 4:00 p.m., local time, 11 August 2000. Posted 07/18/00 (W-SN476185). (0200)

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