Defense Energy Support Center, 8725 John J. Kingman Rd., Suite 4950, Ft Belvoir, VA 22060-6222

S -- SOURCES SOUGHT FOR PRIVATIZATION OF UNITED STATES ARMY ELECTRICAL DISTRIBUTION SYSTEM; POTABLE WATER PRODUCTION AND DISTRIBUTION; WASTEWATER COLLECTION SYSTEM; STEAM SUPPLY AND CONDENSATE RETURN SYSTEMS; UTILIDOR SYSTEM FOR THE UNITED STATES ARMY, FORT WAINWRIGHT, ALASKA 99703-6500 POC Mr. Michael White, Contract Specialist, (703) 767-9653 or Ms. Elizabeth Pesenti, Defense Energy Support Center, (DESC-APP), Contracting Officer, (703)767-8130 WEB: Click here for the DESC Website, http://www.desc.dla.mil/main/a/iscd.htm. The Defense Energy Support Center (DESC), in conjunction with the US Army Assistant Chief of Staff for Installation Management (ACSIM) and the United States Army Pacific Command, 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" for the United States Army Alaska, Fort Wainwright located near Fairbanks, Alaska. The potential privatization actions will include transfer of ownership, operation and maintenance, and the obligation to serve. The Army intends to retain ownership of all land and will grant easements and leases for access to land associated with each utility system. OBJECTIVE: Should privatization occur, the ownership of the entire Electrical Distribution System; Potable Water Production and Distribution System; Wastewater Collection System; Steam Supply and Condensate Return Systems; Utilidor System, and equipment to include, all capital investments, operation, maintenance and repair responsibilities, shall transfer to a publicly or privately owned utility provider. All responsibility for maintaining reliable service, including such items as environmental compliance, operation, maintenance, major systems renovation, construction, equipment, manpower and overhead shall be the responsibility of the utility provider. INSTALLATION AND UTILITY SYSTEMS DESCRIPTIONS: Location: United States Army Alaska, Fort Wainwright, Alaska 99703-6500. Description of Facilities: The United States Army Alaska, Fort Wainwright, located near Fairbanks, Alaska, 99703-6500 consists of the following utility distribution and collection systems: a. ELECTRICAL DISTRIBUTION SYSTEM: -- The distribution system is a wye configuration operating at 12,400/7,200 volts. -- The primary electric power supply comes from a 22 Mega-Watt (MW) Central Heat and Power Plant (CHPP). This is a coal fired co-generation plant located on Fort Wainwright. Steam is also produced by the CHPP from 6 boilers each rated at 150,000 pounds per hour. -- A secondary source of supply is Golden Valley Electric Association through two ties to the post grid, a 9 Mega-Watt (MW) transformer at the power plant and a 4.9MW transformer in south family housing. -- Approximately 141 circuit miles of overhead primary distribution lines. -- Approximately 166 circuit miles of underground primary distribution lines. -- 3994 street/parking lights. -- Twenty electrical manholes, all classified as confined space. -- Numerous ground points and aircraft clearance lights. -- The airfield lighting system and post head bolt heaters are not a part of the system under consideration. b. POTABLE WATER PRODUCTION AND DISTRIBUTION SYSTEM: -- Potable water is drawn from wells located on the Post. Necessary treatment is accomplished in the Post water treatment plant, which has a capacity of 2.5 MGD. -- The plant operates from two wells, one inside the plant and one outside the plant. -- There are five satellite wells, not treated, and back up wells on North post and the power plant, not treated. -- Distribution Lines: Approximately 37 miles of lines ranging in size from -inch to 16 inches in diameter and constructed of ductile iron, galvanized steel, black steel and copper. -- Approximately 304 hydrants. -- There is no secondary water source. -- It is important to note that approximately ninety percent of the distribution lines run in the utilidors and the remaining underground. The utilidor system will be defined later in "Section e" of the solicitation. c. WASTEWATER COLLECTION SYSTEM: -- System consists of approximately 34 miles of collection lines ranging in size from 4 inches to 30 inches in diameter. -- Material of construction is concrete, asbestos cement, ductile iron, black steel and galvanized steel. -- The collection system feeds to an out fall line that goes off post to the City of Fairbanks collection system. -- Seventy-five percent of the collection lines run in the utilidors. All mains are direct buried. -- There are 17 lift stations, six of which are in the utilidor. -- The normal manhole placement is 500 feet apart. -- All manholes require confined space procedures. -- The wastewater is heated to as high as 800F in the hot utilidors. This high temperature leads to a hydrogen sulfide problem at the city manhole. It is very possible pretreatment to lower the sulfide concentration will be necessary in the near future. -- Twenty-five percent of the direct buried system has been cleaned and video taped. Videos show major deterioration at the top of the lines. d. STEAM SUPPLY AND CONDENSATE RETURN SYSTEMS: -- The steam distribution system is constructed of steel pipe ranging in size from 2 inches to 24 inches in diameter. The transported steam is superheated and leaves the steam plant at 100 psig (pounds per square inch gauge). In general, the first pressure reduction point is in the buildings. -- The condensate return system is both gravity flow and pressurized. -- The steam supply and condensate return lines basically run together. -- There are 35 miles of steam and condensate lines in the utilidors and 7 miles direct buried. -- There are instances where steam tracing is used in the utilidor system to project water supply lines to hydrants. e. UTILIDOR SYSTEM: -- The utilidor system is an integral part of the utility systems being considered for privatization. It is important to note for safety and reliability reasons that the utilidor system creates an all or none proposition. The utility systems located in the utilidor could potentially freeze in approximately 3 hours if the utilidor system lost the heat gained from the steam and condensate piping. -- In sub-arctic climate, the Army uses underground passageways or utilidors to house the utilities distribution system and collection system. -- Fort Wainwright has approximately 35 miles of these utilidors. -- The utilidors range in size from 2 feet by 2 feet to 7 feet by 8 feet. They were installed in the 1940's, 1950's and 1980's, most in the 1950's. Construction is concrete with removable concrete lids. The earth cover ranges from 1 foot to 15 feet. -- The utilidors are the primary routing for the steam and condensate piping, the potable water distribution system and seventy-five percent of the wastewater collection system. Communication system wiring (telephone, fiber optics, T.V., alarms) and low voltage service power is also present. -- The Army would require unrestricted access to the utilidors for emergency shut-off of the utilities to the buildings. -- Areas that need to be addressed concerning the utilidors are as follows: There is asbestos contamination throughout the utilidor system. The contamination comes from the pipe insulation. This condition requires operation and maintenance personnel to be suited up and equipped with a breathing apparatus. OSHA classifies the utilidors as a confined space and OSHA regulations must be followed for entry. -- Flooding of the utilidors is a common springtime occurrence and adds to the asbestos contamination problem. -- Security problems created by the utilidors could potentially provide unauthorized access into the majority of the buildings via the utilidor. This security issue needs to be addressed by perspective bidder. -- Wet/missing pipe insulation creates heat gain problems in some of the utilidors, temperature may reach 150 degrees F. -- There are wastewater lift stations and condensate receivers in the utilidors that also need to be maintained. NOTE: The systems described in sub-paragraphs d and e, " steam supply and condensate return " and "utilidor system " may be pulled from the privatization initiative at a later date. PROCESS: This request is to gather information from interested parties and is an essential step in determining market interest for the privatization of the utility systems at the affected installations. In order to minimize costs both to potentially interested parties and the Government, this notice is issued to determine market interest and feasibility as well as determining marketing strategies for privatizing utility systems. Interested parties should provide a statement of interest on company letterhead. The statement of interest must not exceed a total length of 15 pages plus 1 page per type of utility system of interest. Parties may express interest in either the utilidors and all systems in them or the electrical distribution or both. The statement shall include as a minimum, the following information: (1) capability and experience in the ownership, operation and maintenance of similar systems; (2) financial capability to purchase, upgrade, expand, operate and maintain utility systems; (3) specific utility system(s) of interest and desired bundling of utilities systems to purchase; (4) conceptual rate plan (i.e., will charges for utility service be made from existing rates or from rates developed specifically for service at the individual installation(s); (5) discussion of your conceptual basis for a proposed purchase price (capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, or other); (6) understanding of any applicable state or local utility laws or franchise requirements, and capability of complying with such requirements; (7) understanding of the federal, state and local environmental laws and regulations and familiarity and experience with environmental compliance procedures and regulations for the applicable states and US Environmental Protection Agency Regions and Capability to mitigate environmental conditions relating to similarly situated utility systems; (8) Business size: Large, Small, Small Disadvantaged Business or 8(a). SITE VISIT AND DATA: Neither a site visit nor the provision of additional data on the utility systems is considered necessary for the preparation and submittal of statement of interest. 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. DUE DATE: Statements of interest must be submitted to Defense Energy Support Center (DESC-APP) by 01 December 1999,by 3:00 p.m. Eastern Standard Time. Sources may respond by mail to Defense Energy Support Center, 8725 John J. Kingman Road, Suite 4950, ATTN: Michael White, DESC-APP, Room 3830, Fort Belvoir, VA 22060-6222. Posted 11/01/99 (W-SN396726). (0305)

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