CH2M Hill, Inc., 613 NW Loop 410, Suite 200, San Antonio, TX 78216

Y -- UTILITIES PRIVATIZATION AT ELLINGTON FIELD AIR NATIONAL GUARD BASE, TEXAS DUE 053199 POC For the U.S. Air Force: CH2M HILL, 613, NW Loop 410, Suite 200, San Antonio, TX 78216 POC: Laura Hein(lhein@ch2m.com), Tel (210)377-3081 E-MAIL: Laura Hein, lhein@ch2m.com. PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT ELLINGTON FIELD AIR NATIONAL GUARD BASE, TEXAS, SOL: N/A, DUE: 053199 POTENTIAL SOURCES SOUGHT PURPOSE: The Air Force seeks to identify responsible potential sources and obtain information in regards to privatization of utility systems in accordance with 10 USC 2688, "Utility Systems: Conveyance Authority". The Commander of Ellington Field Air National Guard Base is seeking interest and information specifically for the potential privatization of the potable water, wastewater, natural gas, and electrical utility systems at Ellington Field Air National Guard Base, Texas. OBJECTIVE: Should privatization result, the ownership of Ellington Field Air National Guard Base's potable water, wastewater, natural gas, and electrical utility systems, operation and maintenance and obligation to continue to provide utility service for an indefinite and ongoing period will transfer to a utility service provider. All responsibility for maintainingreliable utility service, including such items as environmental compliance, maintenance costs, major system renovations, construction, equipment, manpower and overhead costs will become the utility service provider's responsibility. It is intended that the privatization will ultimately reduce the Air Force's life-cycle costs for operating and maintaining utility systems and services. SYSTEM DESCRIPTIONS: The following information provided is only an estimate and is subject to change. General- Ellington Field ANGB encompasses approximately 209 acres of land. The utility systems serve approximately 50 buildings with a total of approximately 400,000 square feet of floor space. Water -- The City of Houston, Texas supplies potable water to the Ellington Field ANGB distribution system. Water is distributed throughout the base in distribution piping ranging in size up to 12 inches. This on-base distribution piping is owned by the Government and is being considered for privatization. Wastewater -- Wastewater collected on the Ellington Field ANGB is discharged to the City of Houston sewer system south of the Base. The on-base wastewater collection system includes vitrified clay, cast iron, ductile iron, reinforced concrete and PVC piping ranging in sizes from 4-inch through 10-inch. The wastewater collection system also includes five lift stations. This on-base collection system is currently owned by the Government and is being considered for privatization. Electrical -- Power for the Ellington Field ANGB is supplied by Houston Lighting and Power (HL&P). The existing service is 12.4 KV, 3-phase, and 4 wire. Pole mounted and pad mounted transformers provide utilization voltages of 480, 480/277, 240/120 and 208/120 from the 12.47 KV aerial system. The on-base power distribution system is currently owned by the Government and is being considered for privatization. Gas -- Natural gas is provided to Ellington Field ANGB by ENTEX. The original gas distribution system on Ellington Field ANGB consisted of primarily steel pipe. Approximately 75 percent has been replaced with polyethylene pipe. The distribution system is metered and regulated at one location. The meter is sized for 25,000 cubic feet per hour maximum demand. The regulator maintains the system pressure at 25 to 30 psi. The on-base gas distribution system is currently owned by the Government and is being considered for privatization. PROCEDURES: This request to interested parties is for gathering information and is a required component of a systematic process to evaluate the interested parties under the Air Force's utilities privatization program. In order to minimize costs both to potentially interested parties and the government, this notice is being issued to determine the interest and feasibility of proceeding with a formal request for proposals. Should insufficient credible interest be identified for a privatization action, it is highly likely that no formal solicitation will be issued. SHOULD INTEREST BE DETERMINED SUFFICIENT, A FORMAL REQUEST FOR PROPOSALS MAY BE FORTHCOMING. Small Business interests shall note the FAR Part 19 Standard Industrial Codes (SIC) and Size Standards for the utility systems identified in this announcement. Some, all, or any combination of the following may apply. SIC/SS: 4911/4Million (M) Megawatt hours, 4922/$5M, 4923/$5M, 4924/500, 4925/$5M, 4931/$5M, 4932/$5M, 4939/$5M, 4941/$5M, 4952/$5M, 4953/$6M, 4959/$5M, 4961/$9M, 4971/$5M. REQUESTED RESPONSE: Interested parties should provide a statement of interest on company letterhead (not to exceed 20 pages in length). The statement should include as a minimum the following criteria: (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 capacity to purchase, expand and operate the utility systems; (4) statement detailing the understanding of the obligation to serve in regards to continuous utility service; (5) conceptual rateplan (excluding numerical analysis or proposed rates), i.e. will charges for utility service be made from existing rates or from rates developed specifically for service at the individual base(s); (6) ideas regarding conjunctive metering and billing for service on base (excluding numerical analysis or proposed rates); (7) discussion of your conceptual basis (excluding numerical analysis or proposed price) for a proposed purchase price (capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, or other); (8) statement detailing your understanding of applicable state and local utility laws and your compliance capability; (9) statement detailing your understanding of any existing franchises and your ability to provide service given these conditions; (10) statement detailing your understanding of federal, territorial, and local environmental laws and regulations and familiarity and experience with environmental compliance procedures and regulations for the Texas and theU. S. Environmental Protection Agency; and (11) business size (large, small, small-disadvantaged; 8(a); women-owned). Elaborate proposals or pricing information is neither required nor desired. Under no circumstances will cost data for the existing systems be provided. Any innovative and new conceptual ideas to achieve the stated objective are encouraged. If a site visit and the provision of additional data are later determined necessary, notification will be provided by way of an amendment to this announcement. It should be noted that the RFIs for different Air Force Bases and utility systems may be issued in the same time frame. A separate response to each RFI is required. Please respond electronically as well as with hard copy. The point of contact is Laura Hein(lhein@ch2m.com), Tel (210)377-3081. Posted 05/10/99 (W-SN329557). (0130)

Loren Data Corp. http://www.ld.com (SYN# 0137 19990512\Y-0022.SOL)