NOTICE OF INTENT TO PRIVATIZE THE WASTEWATER TREATMENT FACILITY AT NAVAL AIR STATION WHIDBEY ISLAND, WA Notice of intent to privatize the wastewater treatment facility at Naval Air Station Whidbey Island (NASWI) Seaplane Base, pursuant to 10 U.S.C. 2688, as a sole source procurement with the City of Oak Harbor, Oak Harbor, WA. The Government's intent is to award a firm fixed price contract. Authority: 10 U.S.C. 2304(c) and Federal Acquisition Regulation 6.302-1, state only one responsible source and no other supplies or services will satisfy agency requirements. This notice of intent is not a request for competitive proposals. The following facts warrant the need to pursue this action on a sole source basis. The City of Oak Harbor is the current holder of the State of Washington Department of Ecology NPDES permit for the wastewater facility at NASWI Seaplane Base and currently operates and maintains the wastewater facility under a Utility Service Contract dated 01 Oct 1987. The contract states the City of Oak Harbor shall furnish and the Navy shall purchase and receive sewage service from the City ofOak Harbor. The Navy granted the City of Oak Harbor a fifty (50) year easement for the purpose of operating and maintaining the sewage lagoon, which includes, but is not limited to the influent lines, sewage outfall, and associated facilities located on Navy real property. At the time of contract award, the plant capacity was 885,000 gallons per day (GPD). The contract and easement allow the City of Oak Harbor to utilize the capacity of the facility not used by the Navy for the City of Oak Harbor's own use. A modification to the original contract was executed on 26 Dec 1990 which includes a provision that states under Ownership, Operation, and Maintenance of New Facilities: "notwithstanding payment by the Government for the connection charge, ownership of the facilities supplied by the Contractor under this contract or any renewals thereof, shall remain the property of and shall be operated and maintained by the Contractor." The City of Oak Harbor has expended several million dollars on capital improvements and a number of upgrades for the wastewater facility. In addition to bringing the wastewater facility into compliance with the State of Washington, Department of Ecology discharge standards, the upgrades completed by the City of Oak Harbor increased plant capacity to 2,500,000 GPD to accommodate urban growth within the City. The contract guarantees the Navy the rights to the plant's original capacity (885,000 GPD). Therefore, in accordance with the contract modification, the City of Oak Harbor owns the upgrades completed by the City and only the City can operate and maintain those new facilities. Although the Navy has not completed it's determination of exact lines of ownership demarcation, at this time the Navy considers all upgrades to be owned by the City of Oak Harbor and all the original structures to be owned by the Navy. The upgrades are not severable from the original existing plant structures. The City of Oak Harbor maintains that no other party could operate the facility because the facility cannot be operated without the new improvements made by and owned by the City of Oak Harbor In addition, the City has notified the Navy in writing the City's position which is the City of Oak Harbor owns all of the sewer treatment plant, associated facilities, pipelines, and outfalls. Based upon the above situation regarding ownership of the wastewater facility, if there are any parties interested in entering into privatization with the Navy for that part of the facility that may be determined to be owned by the Navy, you are required to submit a plan demonstrating how you, as the privatized owner, will determine responsibility between the privatized part of the facility and the part of the facility (all non-severable) owned by the City of Oak Harbor with regards to service interruptions, contingency operations, day-to-day operations and maintenance, capital upgrades and replacements, and compliance with applicable federal, state, and local laws or regulations,. All responses must be received within thirty (30)days after the date of publication of this notice. As stated above, this is a notice of intent and is not a request for competitive proposals. Oral Communications are not acceptable. All information shall be furnished at no cost or obligation to the Government. No contract will be awarded on the basis of offers received in response to this notice, but will be used to determine if a comparable source is available and more advantageous to the government in future procurements. If no acceptable interest is received, the Navy shall conclude that the only entity that can, as a practical matter, enter into an agreement to privatize the Navy's share of the wastewater facility at NASWI Seaplane Base, is the City of Oak Harbor. Responses to this notice as well as any questions should be directed to: Engineering Field Activity Northwest (EFANW), Attention Donald Myers, Utility Privatization Lead, 19917 7th Avenue NE, Poulsbo, WA 98370-7570. Phone (360) 396-0236, Phone (360) 396-0236, Fax (360) 396-0954, Email myersdr@efanw.navfac.navy.mil E-MAIL: Click here to e-mail POC at EFA,NW:, myersdr@efanw.navfac.navy.mil. Posted 08/25/00 (W-SN490442).

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