Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF FEBRUARY 26,1997 PSA#1790

THIRD-PARTY PROVISION OF ELECTRICITY, POTABLE WATER, AND CHILLED WATER (OR EQUIVALENT) AT THE NAVAL FACILITIES STATION, DIEGO GARCIA Naval Facilities Engineering Command Contracts Office (NAVFACCO), Code 2711-2, 1000 23rd Avenue, Port Hueneme, CA 93043-4301, POC Cheryl Scott @ (805) 982-3654. The U.S. Navy is seeking expressions of interest from capable firms regarding the possible third-party provision of electricity, potable water, and chilled water (or equivalent) at the Naval Facilities Station, Diego Garcia, hereinafter referred to as NFS-DG. This facility is on the island of Diego Garcia which is one of several islands in the Chagos Archipelago located approximately 1000 miles south-southwest of the southern tip of India. The entire archipelago is under the control of the Government of the United Kingdom (hereinafter referred to as "host") which allows the U.S. Navy to operate a facility there under a long-term guest-host agreement. It must be emphasized that this is a preliminary effort on the part of the U.S. Navy to determine if there are parties interested in the project should the decision be made to proceed. All approvals and permits from the host must be obtained before a decision can be made to proceed with this project. At present, the facility uses an average of 8.2 MW of electricity with a peak of 9.8 MW. Historically, this peak has reached 11.1 MW and has the potential to do so again under certain operational conditions. Electricity is currently provided by diesel powered generator sets at three separate locations on the island. Potable water is currently provided by means of shallow groundwater wells and bottled water for human consumption. There are two water processing facilities located at NFS-DG: a granulated activated charcoal system and a 20,000 gallon/day nanofiltration system. All water supplies are chlorinated. Consumption averages 0.96 million gallons per day. In addition there are 63 chilled water systems on the island ranging in size from 7.5 tons to 65 tons. Total estimated tonnage is 2,305. The Navy is considering several alternatives regarding how equivalent cooling can be provided and, in the interest of completeness, offers this as information only at this time. The Navy envisions a public-private venture (PPV) agreement as the legal vehicle for securing the necessary services. There will be no funding provided by the Navy for construction or operation of any facilities to meet the continuing needs of NFS-DG for water or power. This is the first step in what is anticipated to be a 12 to 18 month process. Additional detailed information will be provided to interested parties at such time as a final decision to go ahead with the project is made. THIS IS A REQUEST FOR INFORMATION ONLY. No contract award will be made on the basis of the information solicited or received. This is not a request for proposals. Parties who wish to do so, are encouraged to submit a letter of interest briefly outlining their qualifications and designating a point of contact (with phone and fax numbers) for any further correspondence. Letters should be submitted no later than 18 April 1997 to: NAVFACCO (Code 27112), ATTN: Ms. CherylScott, Naval Construction Battalion Center, 1000 23rd Avenue, Port Hueneme, CA 93043-4301.

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