Department of Transportation, Federal Railroad Administration (FRA), Office of Acquisition and Grants Services, 1120 Vermont Avenue, NW, Mail Stop 50, Washington, DC, 20590

A -- STUDY TO DETERMINE SMALL RAILROAD INVESTMENT NEEDS AND FINANCAIAL OPTIONS; TO DETERMINE THE PUBLIC INTEREST. SOL DTFR53-00-R-0026 POC Sharon Flowers, Contract Specialist, Phone 202/493-6419, Fax 202/493-6171, Email sharon.flowers@fra.dot.gov -- Illona Williams, Contracting Officer, Phone (202) 493-6130, Fax (202) 493-6171, Email WEB: Visit this URL for the latest information about this, http://www2.eps.gov/cgi-bin/WebObjects/EPS?ACode=P&ProjID=DTFR53-00-R-0026&LocID=1042. E-MAIL: Sharon Flowers, sharon.flowers@fra.dot.gov. The Federal Railroad Administration intends to issue a Contract to Upper Great Plains Transportation Institute University of North Dakota.. This procurement is to study the small railroad investment needs and financial options; to determine the public interest benefits associated with light density rail networks in the states and their contribution to a multi-modal transportation system; and to demonstrate the relationship of light density railroad services to the statutory responsibilities of the Secretary, including those under Title 23. The description is as follows: The contractor will perform the following tasks to complete this study. Task 1 -- Small Railroad Investment Needs and Financial Options. In December 1999, the Standing Committee on Rail Transportation of the American Association of State Highway and Transportation Officials issued a "Report on the 10 year Needs of Short Line and Regional Railroads". The Report was based on a needs survey of small railroads which was then reviewed andconfirmed by the states. On May 26, 2000, another study regarding the investment needs of the small railroads was released. This study is entitled "An Estimation of the Investment in Track Structures Needed to handle 286,000 lb. Rail Cars. The contractor will review these studies as well as any other relevant information to document the current investment needs of shortline and regional railroads. The contractor will contact a variety of commercial lending institutions to identify the financing options available to small railroads. The number and type of commercial lenders contacted will be mutually agreed to by FRA and the contractor. The contractor will document the terms of any available credit, including the length of the loans being offered, minimum thresholds of principal, current interest rates being charged, and the amount of collateral required. The shortline and regional railroads are being offered credit on different terms. The contractor will analyze information included in the National Short Line Railroad Database to identify potential financial performance measures that might assist commercial lenders in making credit available to shortline and regional railroads. Work on this task should be completed by December 31, 2000. Task 2: Public Interest Benefits of Light Density Rail Networks in the States and Their Contribution to a Multi-Modal Transportation System. The contractor will review studies identifying the public benefits and costs of continued service on light density rail freight lines and summarize the results of these studies. The contractor will review studies to document the effects of the abandonment of light density rail lines on a state's transportation system, including highway impact and the potential for future expansion. The contractor will evaluate the role of light density rail lines in the national transportation system, including their unique function with respect to certain types of industries and certain types of commodities. Work on this task may extend through February 2001. Task 3: Relationship of Light Density Railroad Services to Statutory Responsibilities of Secretary of Transportation. The contractor will demonstrate the extent to which light density railroad freight services relate to the Secretary's responsibilities for providing fast, safe, efficient, and convenient transportation at the lowest cost consistent with the national objectives of general welfare, and economic growth and stability, including the efficient use and conservation of the resources of the United States. Work on this task may extend through February 2001. The proposed contract action is for supplies or services for which the Government intends to solicit and negotiate with only one source . Only one responsible source is uniquely qualified to provide the requested services. The Upper Great Plains Transportation Institute manages the National Short Line Database for the American Short Line and Regional Railroad Association. As manager of the National Short Line Railroad Database, the Institute has access to railroad financial information that is essential for developing the performance measures required in Task 1. The Institute also has completed numerous economic studies regarding shortline and regional railroads as well as analyses of light density rail lines. A sole source justification has been prepared in support of this acquisition. A solicitation will be posted on the EPS system for interested parties. The tentative date for posting the solicitation is on or around August 25, 2000. Information received will be considered solely for the purpose of determining whether to conduct a competitive procurement. Posted 08/22/00 (D-SN488859). (0235)

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