Burns & McDonnell, 9400 Ward Parkway, Kansas City, MO 64114

Y -- PRIVATIZATION UNDER 10 USC 2688, UTILITY SYSTEMS: CONVEYANCE AUTHORITY AT GRAND FORKS AIR FORCE BASE, ND DUE 121499 POC Burns & McDonnell Engineering Co. (Contractor for the U.S. Air Force), 9400 Ward Parkway, Kansas City, MO 64114. POC: Randy Foster, Tel (816) 822-3852. E-MAIL: Click here to contact Greg Fisher via e-mail, gfisher@burnsmcd.com. PURPOSE: Burns & McDonnell Engineering Co., as a contractor to 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 Air Force is seeking interest and information specifically for the potential privatization of the natural gas utility system at Grand Forks Air Force Base, ND. OBJECTIVE: Should privatization result of Grand Forks Air Force Base's natural gas utility system, the ownership, 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 maintaining reliable 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 the utility system and services. SYSTEM DESCRIPTIONS: Grand Forks Air Force Base is located in Grand Forks County, ND. There are 1,163 total buildings, including 760 military family housing buildings, and 5,418 total acres. Only the natural gas utility distribution system is being considered. There are approximately 87,450 linear feet of natural gas piping on Grand Forks AFB. The base does not generate its own natural gas. Additional utility system information is available electronically (in Microsoft Word 6.0) by submitting an e-mail request to Greg Fisher (gfisher@burnsmcd.com). PROCEDURES: The purpose of this request is to gather information to assist in the systematic process of evaluating market interest for the prospective privatization of the natural gas system. In order to minimize costs to potentially interested parties and the government, this notice is being issued to determine the level of interest and feasibility of proceeding with issuance of a formal request for proposals. No formal solicitation will be issued for a privatization action if sufficient and credible interest can not be identified. 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 natural gas system 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) a specific statement of interest specifying the utility system they are interested in acquiring; (2) financial capacity to purchase, expand and operate the utility system (providing a copy of the firm's annual report with the statement of interest is highly encouraged); (3) the size of the business (e.g. large, small, small-disadvantaged) and applicable special classification (e.g. 8(a), woman-owned, etc.); (4) capability and experience in ownership, operation and maintenance of similar utility systems; (5) statement detailing the legal right to serve, own, operate, and maintain utility systems within the state; (6) statement detailing your understanding of any existing franchises and the effect on your ability to provide service to the base; (7) statement detailing your understanding of applicable federal, state and local utility laws/regulations and your compliance capability; (8) statement detailing your understanding of federal, territorial, and local environmental laws/regulations and familiarity and experience with environmental compliance procedures/regulations (i.e. local, state and federal including the U. S. Environmental Protection Agency); (9) conceptual basis (excluding numerical analysis or proposed prices) for a proposed purchase price (e.g. capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, nominal cost, etc.); (10) conceptual basis (excluding numerical analysis or proposed rates) for a proposed rate plan including the handling of costs to operate, maintain, renew and renovate the existing system over time (i.e. firm-fixed, cost plus, volumetric, etc.); (11) ideas regarding conjunctive metering and billing for service on base (i.e. master metering, individual meter, sub-metering, single billing, etc.); and (12) suggested ideas and approaches to renovate the utility system. 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. Send info to: Randy Foster, Burns & McDonnell Engineering Co., 9400 Ward Parkway, Kansas City, MO 64114. Posted 11/11/99 (W-SN400198). (0315)

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