S -- UTILITIES PRIVATIZATION FOR FE WARREN AIR FORCE BASE, WYOMING

Notice Date

October 12, 2000

Contracting Office

Department of the Air Force, Air Force Space Command, 21CONS (Bldg 365), Specialized Flight-IT, O&M, Tech Serv, IT Resources, 135 E ENT Ave STE 101, Peterson AFB, CO, 80914-1385

ZIP Code

80914-1385

Solicitation Number

F05604-01-R-9000

Response Due

November 3, 2000

Point of Contact

Jonna Hancey, Contract Specialist, Phone 719-556-6805, Fax 719-556-7396, Email jonna.hancey@peterson.af.mil -- Rick Orona, Contract Specialist, Phone (719) 556-7506, Fax (719) 556-7396, Email

E-Mail Address

Jonna Hancey (jonna.hancey@peterson.af.mil)

Description

This is not a Notice of Solicitation. Rather, this is a follow-up notice to the announcement published in the Commerce Business Daily (CBD) on 11 Jan 00 regarding the privatization of the utility systems at FE Warren AFB, WY. The intent of this pre-solicitation notice is to determine Small Business interest. A lack of sufficient response from Small Business will result in this acquisition being solicited on an unrestricted basis (full and open competition). Background: Based on the 1997 Defense Reform Initiative Directives (DRID), the Air Force is studying the feasibility of privatizing the electrical and natural gas distribution systems, at FE Warren AFB in accordance with 10 USC 2688, Utility Systems: Conveyance Authority. Privatization is defined as the transfer of ownership and operations and maintenance responsibilities of Government owned systems to a municipal, private, regional, district or cooperative utility company or to another entity. Operation and maintenance includes such items as environmental compliance, maintenance costs, major systems renovations and upgrades, construction, equipment and manpower. The goal of the process is to privatize all utility infrastructures that are determined to be economically feasible without an adverse mission impact. It is intended that privatization will ultimately reduce the Air Force_s life-cycle costs for operating and maintaining utility systems and services. All privatization projects will be supported by an economic analysis based on accepted life-cycle costing procedures that demonstrate the long-term economic benefit and reduced long-term costs. If the economic analysis determines that privatization is uneconomical, a contract will not be awarded and bid and proposal costs will not be paid. The Air Force is currently only funded at a portion of the estimated contract value. This funding issue must be resolved by the Air Force prior to contract award. If awarded, the contract may have a term as long as 50 years. SYSTEM DESCRIPTIONS: Natural Gas _ The Base_s natural gas distribution system consists of approximately 31,000 linear feet (lf) of steel and 110,000 lf of polyethylene (PE) pipe ranging from 34 to 8 inches in diameter. The steel pipe is coated carbon steel with sacrificial anode cathodic protection. The original carbon steel sections were installed in the 1950s, and the cathodic protection was installed in the mid-1980s. There are two separate gas distribution systems on the north side of the base that are already privatized. These two systems are owned and maintained by Cheyenne Light, Fuel and Power. The system inventory yields a calculated Replacement Cost New (RCN) value of approximately $3,948,205. Based on an estimate of installation dates and useful life for this type of equipment, the calculated Replacement Cost New Less Depreciation (RCNLD) is approximately, $2,668,498. Electrical _ This system consists of three-phase, three-wire line rated at 15kV. Currently the primary overhead portions total approximately 78,850 circuit feet, and the primary underground portions total approximately 93,000 circuit feet. The system inventory yields a calculated RCN value of approximately $13,133,192. Based on an estimate of installation dates and useful life for this equipment, the RCNLD is approximately $9,204,366. PROCEDURES: This sources sought synopsis is being issued to determine the feasibility of setting aside this potential acquisition for small business. Business interests shall note the FAR Part 19 North American Industry Classification System (NAICS) and Size Standards (SS) for the utility systems identified in this announcement. Some, all, or any combination of the following may apply. NAICS/SS: 221210/500, 221122/4 mil megawatt hours. REQUESTED RESPONSE: Interested parties should provide a statement of interest on company letterhead not to exceed 30 pages in length. Firms that previously replied to the 11 Jan 00 CBD announcement need not resubmit their information. The statement should include, as a minimum, the following information: (1) specific utility system(s) of interest and desired bundling/grouping of utilities to purchase; (2) capability and experience in ownership, operation and maintenance of similar utility systems; (3) financial capability to purchase, expand, and operate the utility systems; (4) conceptual rate plan (excluding numerical analysis or proposed rates) (i.e. will charges for utility services be developed specifically for service at the individual base?) (5) ideas regarding conjunctive metering and billing for service on base (excluding numerical analysis or proposed rates); (6) discussion on how you plan to finance the purchase price of the system(s); (7) statement detailing your understanding of federal, territorial and local environmental compliance procedures and regulations for the state of Wyoming and the U.S. Environmental Protection Agency; (8) business size (large, small, small-disadvantaged, 8(a), woman-owned). Elaborate proposals or pricing information are neither required nor desired. Any innovative and new conceptual ideas to achieve the stated objectives are encouraged. This request for information is a component of a systematic approach to implement the Air Force_s privatization program. If responsive statements are received, clarification requests and/or an industry conference may be scheduled at FE Warren AFB in the future. This announcement is based upon the best information available, may be subject to future modification, is not a request for proposal and in no way commits the Government to take action. Responses to this notice as well as any questions must be directed to 21 CONS/LGCZA, Attention: Jonna L. Hancey, 135 East Ent Avenue, Suite 101, Peterson AFB, CO 80914-1385. Phone (719) 556-6805. Alternate POC: Rick Orona Phone (719) 556-7506. Responses are by 03 Nov 2000.

Web Link

Visit this URL for the latest information about this (http://www2.eps.gov/cgi-bin/WebObjects/EPS?ACode=R&ProjID=F05604-01-R-9000&LocID=532)

Record

Loren Data Corp. 20001016/SSOL008.HTM (D-286 SN504251)