S -- PRIVATIZATION OF THE NATURAL GAS DISTRIBUTION SYSTEM AT 127 WING SELFRIDGE ANGB, MICHIGAN

Notice Date

September 8, 2000

Contracting Office

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

ZIP Code

22060-6222

Point of Contact

Contract Specialist, Lisa Lombard (703)767-9404 or Contracting Officer, Verna Velez (703)767-8451

E-Mail Address

For additional information or clarification (llombard@desc.dla.mil or vvelez@desc.dla.mil)

Description

The proposed contract action is for the privatization of the Government Owned natural gas distribution system at 127 Wing Selfridge ANGB, Michigan, for which the Government intends to solicit and negotiate with only one source, Consumers Energy, under the authority of FAR 6.302-1. The Government Owned natural gas distribution system at 127 Wing Selfridge ANGB, Michigan, consists of approximately 22% of the Installation's entire natural gas distribution system. Consumers Energy currently owns 78% of the system. The remaining system to be privatized is located on the main base near George Avenue and Mitchell Street. The area consists primarily of the 100, 200, and 300 area buildings, some of the 700 area buildings, plus the buildings along the north side of the East Ramp. The total length of the natural gas distribution system to be privatized is approximately 16,900 lf of high-density polyethylene plastic pipe ranging in size from 1 -- 1/8 to 4 inches in diameter. The use of other than full and open competition for this contracting action is authorized by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The justification for the use of other than full and open competition is based on technical, safety and engineering aspects of the system ownership and operation. Consumers Energy owns a majority of the 127 Wing Selfridge ANGB's natural gas distribution system with tap points and connections fully integrated from the supply mains to the buildings throughout the entire distribution system. The portion of the gas distribution system currently owned by the 127 Wing Selfridge ANGB taps into, and is encircled by the gas distribution system currently owned by Consumers Energy. The Government believes it is appropriate to solicit and negotiate with only Consumers Energy, for the following reasons: Separate contracts (multiple contractors) would complicate lines of responsibility, increase response time, and adversely impact safety. Gas distribution system safety and system reliability are the most critical concerns of the Air Force. Ownership, operation, and maintenance of the 127 Wing Selfridge ANGB natural gas system infrastructure by a single company will ensure that proper procedures can be developed to detect, identify, and prioritize hazardous or potentially hazardous conditions on the installation before they result in injury, property damage, or service interruption. Commingled ownership of an integral system would also forseeably lead to disputes and delay in problem resolution. And lastly, it is likely that award to any other source would result in a substantial duplication of costs to the Government. See Note 22. (See LINKURL below) For any additional information contact: Lisa Lombard, (703)767-9404: or Verna Velez, (703)767-8451.

Web Link

Explanation of Numbered note 22 (http://cbdnet.access.gpo.gov/num-note.html)

Record

Loren Data Corp. 20000912/SSOL005.HTM (W-252 SN494698)