E -- PRIVATIZATION OF NATURAL GAS DISTRIBUTION SYSTEM AT THE UNITED STATES MILITARY ACADEMY, WEST POINT, NY

Notice Date

January 5, 2001

Contracting Office

US Army Corps of Engineers, Engineering and Support Center Huntsville, 4820 University Square, Huntsville, AL 35816-1822

ZIP Code

35816-1822

Solicitation Number

TO BE PROVIDED AT LATER DATE

Response Due

June 5, 2001

Point of Contact

Van E. Pinion, Contract Specialist, 256-895-1383

E-Mail Address

Click here to contact the Contract Specialist via (van.e.pinion@usace.army.mil)

Description

DESCRIPTION: The U.S. Army Engineering and Support Center, Huntsville seeks to identify responsible potential sources in regards to issuing a solicitation for privatizing the natural gas distribution system and the subsequent acquisition of the natural gas distribution service at the United States Military Academy (USMA) as authorized by 10 U.S.C. 2304 and 10 U.S.C. 2688. This anticipated procurement is to be for the privatization of the natural gas utility system. Any resulting solicitation is not intended to include the natural gas commodity and does not supplant existing commodity contracts. Privatization is a process by which the Government sells its utility distribution system to a private entity and contracts with the entity to own, operate, maintain and improve the utility system as with a commercial system. SYNOPSIS: USMA's natural gas distribution system consists of high, medium, and low pressure lines regulated through 10 stations and some individual regulators. The system has approximately 200 individual regulators and 13 centralized regulator stations. The system consists of appropriate valves, cathodic protection and water traps and manholes for servicing the distribution system. There is an estimated 6.5 miles of high pressure steel lines ranging in size from 4 to 8 inches maintained at 60 psi with 75 percent of the lines installed since 1989. There is an estimated 5.5 miles of medium pressure steel and plastic lines ranging in size from 3/4 to 4 inches maintained at 15-20 psi with 10 percent steel lines installed since 1989. There is an estimated 14.5 miles of low pressure steel and plastic lines ranging in size from 3/4 to 8 inches maintained at 5 psi with 10 percent of the lines steel and 90 percent of the lines installed since 1989. The replacement value for the estimated 26.5 miles of the distribution system is over $16 million. This estimated value is based on the installation costs, life expectancy and unique geological and operational requirements. Because most of the infrastructure has been installed in the last 12 years using DRISCO plastic pipe with an estimated 50 year life , the value of the system in 1999 dollars is estimated to be over $12.5 million (method of calculation-original costs minus depreciation). PROCEDURES: This request to interested parties is for gathering information and is a required component and systematic process to evaluate the interested parties under the utilities privatization program. In order to minimize costs both to potentially interested parties and the Government, this notice is being issued to request letters of interest and to provide notification of the Government's intent to issue a formal solicitation. Should insufficient credible interest be identified for this action, it is highly likely that no formal solicitation will be issued. All interested parties should provide a statement of interest on company letterhead no later than January 25, 2001 to the POC identified below. The statement should not exceed 5 pages and should include, as a minimum, the following information: (1) interest in purchasing the utility distribution system and statement detailing the understanding of the obligation to serve in regards to continuous natural gas distribution service to USMC; (2) financial capacity to purchase, expand and operate the utility system; (3) organizational structure, capability and experience in ownership, operation and maintenance of similar natural gas distribution utility systems; (4) understanding of applicable federal, state, and local utility laws and capability of complying with such; (5) business size (large, small, small-disadvantaged; Section 8(a); women-owned, etc.); and (6) status as a regulated utility in the state of New York. IT IS ANTICIPATED THAT A FORMAL REQUEST FOR PROPOSAL WILL BE POSTED ON THE HUNTSVILLE ENGINEERING AND SUPPORT CENTER'S WEBSITE ON OR ABOUT MARCH 5, 2001 AND WILL BE CLOSED ON OR ABOUT JUNE 5, 2001. POC: Van Pinion, Contract Specialist, at U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville, 4820 University Square, Huntsville, AL 35816-1822. Telephone numbers are 256-895-1383 (commercial) and 256-895-1172 (Fax).

Web Link

At time of issue, the RFP will be available electronically (www.usace.army.mil/contract)

Record

Loren Data Corp. 20010109/ESOL001.HTM (W-005 SN50A237)