S -- UTILITIES PRIVATIZATION AT MALMSTROM AFB, MT

Notice Date

October 16, 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-9001

Response Due

November 8, 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 A CORRECTION TO THE PREVIOUS RFI ISSUED UNDER SOLICITATION F05604-R-9001. AN ERROR WAS MADE IN THE SOLICITATION NUMBER. THE CORRECT SOLICITATION NUMBER IS F05604-01-R-9001. IF YOU HAVE REGISTERED TO RECEIVE NOTICES UNDER THE INCORRECT NUMBER, PLEASE RE-REGISTER UNDER THE CORRECT SOLICITATION NUMBER: F05604-01-R-9001. 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 03 Jan 00 regarding the privatization of the utility systems at Malmstrom AFB, MT. 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, natural gas, water and wastewater distribution systems, at Malmstrom 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: Electrical _ The primary distribution system consists of three-phase, four-wire line rated at 15kV from the substation metal clad switchgear. Currently the primary overhead portions total approximately 93,300 circuit feet, and the primary underground portions total approximately 56,700 circuit feet. The secondary system consists of approximately 70,600 circuit feet of overhead line and 70,000 circuit feet of underground (in conduit). The system inventory yields a calculated Replacement Cost New (RCN) value of approximately $18,082,267. Based on an estimate of installation dates and useful life for this equipment, the Replacement Cost New Less Depreciation (RCNLD) is approximately $15,122,653. Natural Gas _ The Base_s natural gas distribution system consists of approximately 158,900 linear feet (lf) of piping, including mains and service connections. Approximately 90 percent is polyethylene (PE), and the remaining is coated steel. If the Government retains ownership there are three projects planned in the next few years to replace the remaining steel piping with PE. The pipe sizes range from 34-inch to 8 inches. Neither the heating plant nor the high temperature hot water distribution system are being considered for privatization. The system inventory yields a calculated RCN value of approximately $4,373,844. Based on an estimate of installation dates and useful life for this type of equipment, the calculated RCNLD is approximately, $3,712,739. Water _ The potable water distribution system consists of approximately 241,500 lf of piping, one 600,000-gallon concrete storage tank at the ground surface, two elevated potable water steel storage tanks (500,000 and 250,000 gallons), and one pump station. Most of the pipelines are PVC or asbestos cement. Malmstrom has replaced nearly all of the original water system_s cast iron pipes. Approximately 1 percent of the pipe is cast iron. The two elevated potable water storage tanks are protected by cathodic protection systems utilizing galvanic anodes. Coating of one of the storage tanks showed areas of minor corrosion and a recoating is planned for 2000. The system inventory yields a calculated RCN value of approximately $11,003,690. Based on an estimate of installation dates and useful life for this type of equipment, the calculated RCNLD is approximately $6,116,657. Wastewater -- The system consists of approximately 137,518 lf of collection piping and two satellite lift stations that connect to a main lift station. Most of the pipe if PVC or slip-lined and has been replaced in the last 20 years. The system inventory yields a calculated RCN value of approximately $5,257,999. Based on an estimate of installation dates and useful life for this type of equipment, the calculated RCNLD is approximately $2,796,337. 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, 221310/$5.0,,221122/4 mil megawatt hours, 221320/$5.0. 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 03 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 Montana and the U.S. Environmental Protection Agency; (8) business size (large, small, small-disadvantaged, 8(a), woman-owned). Elaborate proposals or pricing information is 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 Malmstrom 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 due by 8 Nov

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-9001&LocID=532)

Record

Loren Data Corp. 20001018/SSOL005.HTM (D-290 SN504409)