S -- UTILITIES PRIVATIZATION, SCHRIEVER AIR FORCE BASE, REQUEST FOR

Notice Date

September 25, 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

F05604-00-R-9003

Response Due

October 10, 2000

Point of Contact

Rita Fruge, Contract Specialist, Phone (719)556-4079, Fax (719)556-4756, Email rita.fruge@peterson.af.mil -- Rick Orona, Contract Specialist, Phone (719) 556-7506, Fax (719) 556-7396, Email

E-Mail Address

Rita Fruge (rita.fruge@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 03 March 1999 regarding the privatization of the utility systems at Schriever AFB, CO. 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 natural gas distribution and potable water distribution at Schriever AFB in accordance with 10 USC 2688, Utility Systems: Conveyance Authority. Privatization is defined as the transfer of ownership and operations and maintenance responsibilities, to include such items as environmental compliance, maintenance costs, major systems renovations and upgrades, construction, equipment and manpower of Government owned systems to a municipal, private, regional, district or cooperative utility company or to another entity. 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 will have a term of 50 years. SYSTEM DESCRIPTIONS: Natural Gas _ The Base_s natural gas distribution system consists of approximately 14,000 linear feet (lf) of steel and 6,000 lf of polyethylene (PE) pipe ranging from 1 to 10 inches in diameter. There are two natural gas stations and regulators on the incoming gas line. The steel pipe portion of the natural gas distribution system is cathodically protected with magnesium anodes. All cathodic protection systems on Schriever AFB are currently being upgraded. The upgrades are scheduled for completion prior to FY 2001. For privatization purposes, the Base_s natural gas distribution system includes all piping downstream from the master meter and up to and including the regulator and meter at each building. The system inventory yields a calculated Replacement Cost New (RCN) value of approximately $744,988. 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, $653,647. Water _ Water is distributed throughout Schriever AFB from the pump station through approximately 39,000 lf of 4 to 10 inch diameter mains and approximately 3,000 lf of service lines ranging in diameter from 1 to 2 inches. All mains and service lines are Schedule 40 polyvinyl chloride (PVC) pipe. There is a galvanic anode cathodic protection system installed on the system_s metallic fittings that includes valves, fittings, and hydrants. An upgrade project is under way for all cathodic protection systems on Schriever AFB. The system inventory yields a calculated RCN value of approximately $4,421,317. Based on an estimate of installation dates and useful life for this type of equipment, the calculated RCNLD is approximately $3,169,483. 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. 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 Mar 99 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 Colorado 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 Schriever 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: Rita Fruge, 135 East Ent Avenue, Suite 101, Peterson AFB, CO 80914-1385. Phone (719) 556-4079. Alternate POC: Rick Orona, Phone (719) 556-7506. Responses are due within 14 days of the date of the announcement.

Web Link

Visit this URL for the latest information about this (http://www2.eps.gov/cgi-bin/WebObjects/EPS?ACode=P&ProjID=F05604-00-R-9003&LocID=532)

Record

Loren Data Corp. 20000927/SSOL006.HTM (D-269 SN500609)