Amend 0026 6-5-08.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NO.

3. EFFECTIVE DATE

See Block 16C

4. REQUISITION/PURCHASE REQ. NO.

SP0600-00-0697

5. PROJECT NO. (If applicable)

6. ISSUED BY CODE

DEFENSE ENERGY SUPPORT CENTER

SP0600 7. ADMINISTERED BY (If other than Item 6)

CODE

8725 JOHN J. KINGMAN ROAD, SUITE 3830

FT. BELVOIR, VA 22060-6222 FAX (703) 767-2382

KIMBERLY BINNS/DESC-EB

PHONE (703) 767-9653 P.P. 8.2

8. NAME AND ADDRESS OF CONTRACTOR (NO., street,city,county,State,and ZIP Code)

X

9a. AMENDMENT OF SOLICITATION NO.

SP0600-00-R-0009

9b. DATED (SEE ITEM 11)

19 JAN 2000

10a. MODIFICATION OF CONTRACT/ORDER NO.

10b. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ X ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is extended, [ X ] is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: (a) By completing Items 8 and 15, and returning __1__ copies of the amendment;(b) By acknowledging receipt of this amendment on each copy of the offer submitted; or(c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A. I2.05 CHANGES-FIXED PRICE (AUG 87)

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b)

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: FAR 43.01 OTHER (Specify type of modification and authority) E. IMPORTANT: Contractor [ ] is not, [ x ] is required to sign this document and return __1__ copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

The purpose of this amendment is to delete the Request for Proposal (RFP), as stated in Attachment 1 of Amendment 0023, in its entirety and replace it with the RFP contained in this amendment.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

16A. NAME OF CONTRACTING OFFICER

LAURA J. CARLSON

15B. NAME OF CONTRACTOR/OFFEROR

BY

(Signature of person authorized to sign)

15C.DATE

SIGNED

16B. UNITED STATES OF AMERICA

BY

(Signature of Contracting Officer)

16C.DATE SIGNED

5 JUN 2008

SP0600-00-R-0009 PAGE II OF 89

LAUGHLIN AFB, TX

United States Air Force, Utilities Privatization

Revised Request for Proposal (RFP)

SP0600-00-R-0009

Original Date: Jan 2000

Revised Date: June 5, 2008

SP0600-00-R-0009 PAGE III OF 89

Table of Contents

SOLICITATION/CONTRACT

UNITED STATES AIR FORCE, UTILITIES PRIVATIZATION ................................................................. I JUNE 2008 TABLE OF CONTENTS ........................................................................................................................II TABLE OF CONTENTS ........................................................................................................................................ III

SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 CLAUSES AND PROVISIONS

B.2 SCOPE AND PURPOSE

B.2.1 General B.2.2 Statutory Directive B.2.3 Program Goal B.2.4 Notices and Reservations B.2.5 Selection of a Contractor

B.3 SYSTEMS TO BE PRIVATIZED

B.4 PRICE PROPOSAL

B.4.1 Regulated Tariff Rate Proposal B.4.2 Firm-Fixed Price Proposal B.4.3 Fixed-Price Economic Price Adjustment Proposal B.4.4 Fixed-Price with Prospective Price Redetermination Proposal

B.5 SERVICE CHARGES FOR SCHEDULE B-1

B.5.1 CLIN 0001: Applicable Tariff(s) B.5.2 CLIN 0001: Monthly Credit as Payment for Purchase Price B.5.3 CLIN 0002: Initial System Deficiency Corrections/Connection Charges B.5.4 CLIN 0003: Recoverable Portion of the Purchase Price B.5.5 CLIN 0004: Transition Period

B.6 SERVICE CHARGES FOR SCHEDULES B-2, B-3, AND B-4

B.6.1 CLIN 0001 – Utility Service Charge B.6.2 CLIN 0001: Monthly Credit as Payment for Purchase Price B.6.3 CLIN 0002: Initial System Deficiency Corrections / Connection Charges B.6.4 CLIN 0003: Recoverable Portion of the Purchase Price B.6.5 CLIN 0004: Transition Period B.6.6 Total Monthly Charges B.6.7. Economic Price Adjustment Index Methodology

B.7 PRICE SCHEDULE DATA SHEETS

B.7.1 General B.7.2 Schedule 1 – Utility Service Charge B.7.3 Schedule 2 – Renewals and Replacements – 50 YEAR SCHEDULE B.7.4 Schedule 3 – Initial System Deficiency Correction(s) / Connection Charge(s)/Transition Period B.7.5 Schedule 4 –Recoverable Portion of Purchase Price B.7.6 Schedule 5 –Proposal 50 Year Charges to the Government, Constant 20XX$

DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

C.1 PRECEDENCE

C.2 SCOPE AND PURPOSE

C.2.1 General C.2.2 Program Goal C.2.3 Utility Service Providers C.2.4 Utility Systems C.2.5 Current Service Arrangement

C.3 REQUIREMENT

SP0600-00-R-0009 PAGE IV OF 89

C.3.1 Utility Service Requirement C.3.2 Performance Standards C.3.3 Sub- Metering C.3.4 Energy and Water Efficiencies and Conservation C.3.5 Energy/Water Commodity Supply C.3.6 Wastewater Effluent Disposal

C.4 SERVICE AREA

C.4.1 Use of Distribution Systems to Serve Areas Outside the Installation Service Area C.4.2 Joint Use

C.5 UTILITY SYSTEM OWNERSHIP, PERSONNEL, AND SECURITY

C.5.1 Utility System Ownership C.5.2 Personnel C.5.3 Contractor Vehicles C.5.4 Contractor Radios C.5.5 Contractor Advertising

C.6 ACCESS TO THE UTILITY SYSTEM

C.6.1 General C.6.2 Right of Access C.6.2.1 Condition of the Premises C.6.2.2 Alteration of Premises C.6.2.5 Restoration of Premises

C.7 RESPONSE TO SERVICE INTERRUPTIONS/CONTINGENCIES AND CATASTROPHES

C.8 REPAIR RESPONSE PROCEDURES

C.8.1 Notification Procedures C.8.2 Emergency Service Requests C.8.3 Urgent Service Requests C.8.4 Routine Service Requests

C.9 COORDINATION OF WORK

C.9.1 Routine Work C.9.2 Routine, Urgent, and Emergency Service Requests C.9.3 Construction and Restoration of Site C.9.4 Working Hours C.9.5 Coordination Meetings C.9.6 Exercises and Crisis Situations Requiring Utility Support C.9.7 Emergency Operation C.9.8 Non Performance and Abandonment C.9.9 Plant Control

C.10 ENVIRONMENTAL COMPLIANCE

C.10.1 Permit Compliance C.10.2 Spill Contingencies C.10.3 Work in Environmentally Sensitive Areas C.10.4 Environmental Impact Assessments C.10.5 Hazardous Material and Waste Minimization C.10.6 Environmental Response C.10.7 Asbestos and Lead-based Paint C.10.8 Environmental Restoration Program

C.11 SDCS/UPGRADES/CONNECTIONS AND RENEWALS AND REPLACEMENTS

C.11.1 Due Diligence Adjustment C.11.2 SDCs/Upgrades/Connections and Renewals and Replacements C.11.3 Connections and Disconnections

C.12 OPERATIONS AND MAINTENANCE/QUALITY MANAGEMENT

C.13 TRANSITION PLAN

C.14 HISTORICAL, ARCHITECTURAL, & LANDSCAPING REQUIREMENTS

C.15 SPECIALTY TRAINING

PACKAGING AND MARKING

SP0600-00-R-0009 PAGE V OF 89

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

F.1 CONTRACT TERM

F.2 COMMENCEMENT OF SERVICE

F.3 CLAUSES INCORPORATED BY REFERENCE

CONTRACT ADMINISTRATION DATA

G.1 DFARS 252.201-7000: CONTRACTING OFFICER'S REPRESENTATIVE

G.2 SUBMISSION AND PAYMENT OF INVOICES

G.3 UTILITY SERVICE CHARGE ADJUSTMENT

G.4 ACCOUNTING PROCEDURES

SPECIAL CONTRACT PROVISIONS

H.1 MOBILIZATION AND OTHER CONTINGENCIES

H.2 INSURANCE REQUIREMENTS

H.2.1 Insurance Certificate H.2.2 Types of Insurance H.2.3 General H.2.4 Self-insurance

H.3 AVAILABILITY OF FUNDS

NOTHING IN THIS CONTRACT SHALL BE CONSTRUED TO OBLIGATE FUNDS IN ADVANCE OF APPROPRIATIONS. ..50

H.4 LIABILITY

H.5 CATASTROPHIC LOSS

H.6 NOTIFICATION OF INFRASTRUCTURE/SERVICE CONTRACT TRANSFER

H.7 GOVERNMENT REPURCHASE OPTION

H.8 FOREIGN OBJECT DAMAGE PREVENTION PROGRAM

H.9 HAZARDOUS SUBSTANCES

H.10 INTEREST ALLOWABILITY OF CAPITAL INVESTMENT

H.11 CONTRIBUTION IN AID OF CONSTRUCTION (CIAC) TAX LIABILITY

H.12 DIFFERING SITE CONDITIONS

CONTRACT CLAUSES

I.1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.2 FAR CLAUSES

I.2.1 Disputes

I.3 DFARS CLAUSES INCORPORATED BY REFERENCE

I.4 UTILITY SERVICES CLAUSES INCORPORATED BY REFERENCE

I.5 NON-REGULATED UTILITY CLAUSES INCORPORATED BY REFERENCE

I.6 OTHER CLAUSES

I.6.1 FAR 52.216-5: Price Redetermination – Prospective (Oct 1997) I.6.2 Price Redetermination I.6.3 FAR 52.222-42: Statement of Equivalent Rates for Federal Hires (May 1989)

LIST OF ATTACHMENTS

REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF OFFERORS

INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 FAR 52.252-1: SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (IN ACCORDANCE WITH FAR 52.107[A])

L.2 INFORMATION TO OFFERORS

L.2.1 General Information L.2.2 Number of Awards

SP0600-00-R-0009 PAGE VI OF 89

L.2.3 Protests

L.3 PROPOSAL PREPARATION INSTRUCTIONS – GENERAL

L.3.1 Proposal Organization/Page Limits L.3.2 Proposal Format L.3.3 Distribution L.3.4 Electronic Media L.3.5 Pages and Typing L.3.6 Cost or Pricing Information L.3.7 Proposal Structure L.3.8 Cross-Reference Matrix L.3.9 Glossary of Abbreviations and Acronyms L.3.10 Documents Incorporated by Reference L.3.11 Proposal Revisions

L.4 PROPOSAL PREPARATION INSTRUCTIONS – VOLUME I: TECHNICAL PROPOSAL

L.4.1 Subfactor 1: Service Interruption/Contingency and Catastrophic Loss Plan L.4.2 Subfactor 2: Operations and Maintenance/Quality Management Plan L.4.3 Subfactor 3: Initial System Deficiency Corrections and Initial Renewals and Replacements Plan ...76 L.4.4 Subfactor 4: Operational Transition Plan L.4.5 Subfactor 5: Financial Strength

L. 5 PROPOSAL PREPARATION INSTRUCTIONS – VOLUME II: PAST PERFORMANCE

L.6 PROPOSAL PREPARATION INSTRUCTIONS – VOLUME III - CONTRACT DOCUMENTATION

L.6.1 Standard Form (SF) 33 & Representations and Certifications L.6.2 Alternate Proposals and Exceptions to Terms and Conditions

4. If a regulated entity, exclude costs typically consider to be unallowable by the cognizant State regulatory body L.6.3 Other Required Information

L.7 PROPOSAL PREPARATION INSTRUCTIONS – VOLUME IV: PRICE PROPOSAL

L.7.1 Submission of Certified Cost or Pricing Data L.7.2 General L.7.3 Accounting Systems L.7.4 Organization L.7.5 Detailed Instructions for Price Proposal

EVALUATION FACTORS FOR AWARD

M.1 BASIS FOR CONTRACT AWARD

M.2 EVALUATION FACTORS AND SUBFACTORS

M.2.1 Order of Importance for Evaluating Factors and Subfactors:

M.3 COMPARISON OF OFFERED PRICES WITH THE GOVERNMENT SHOULD-COST ESTIMATE

SP0600-00-R-0009 PAGE 7 OF 89

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 350) RATING PAGE OF PAGES

1 | 88

2. CONTRACT NO.

3. SOLICITATION NO.

SP0600-00-R-0009

4. TYPE OF SOLICITATION

[ ] SEALED BID (IFB)

[X] NEGOTIATED (RFP)

5. DATE ISSUED

20 JAN 2000

6. REQUISITION/PURCHASE NO.

SC0600-00-0697

7. ISSUED BY CODE SC0600 8. ADDRESS OFFER TO (If other than item 7)

DEFENSE ENERGY SUPPORT CENTER

8725 JOHN J. KINGMAN ROAD, SUITE 3830

FT. BELVOIR, VA 22060-6222

OFFICER/SYMBOL: Kimberly Binns/EA (703) 767-9653

FAX: (703) 767-2382 P.P. 8.2

ATTN: LAURIE CARLSON, DESC-EB, SUITE 3830

DEFENSE ENERGY SUPPORT CENTERs

8725 JOHN J. KINGMAN ROAD, SUITE 3830

FT. BELVOIR, VA 22060-6222

NOTE: In sealed bid solicitation "offer" and "offeror mean "bid" and "Bidder".

SOLICITATION

9. Sealed offers in original and 5(1 hard copy and 4 CD) copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in ROOM 3830 until 3:00 PM EST local time August 6, 2008 .

(hour) (date) Caution - Late Submissions, Modifications, and Withdrawals: See Section L. Provision No. 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR INFORMATION

CALL:(703) 767-9652

A. NAME

KIMBERLY BINNS

B. TELEPHONE NO. (Include Area Code) (NO COLLECT CALLS)

(703) 767-9653

11. TABLE OF CONTENTS

(x) SEC. DESCRIPTION PAGES (x) SEC. DESCRIPTION PAGES

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

X A SOLICITATION/CONTRACT FORM 1 X I CONTRACT CLAUSES 53

X B SUPPLIES OR SERVICE AND PRICES/COSTS 7 PART III - LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACH.

X C DESCRIPTION/SPECS/WORK STATEMENT 22 X J LIST OF ATTACHMENTS 63

D PACKAGING AND MARKETING 42 PART IV - REPRESENTATIONS AND INSTRUCTIONS

X E INSPECTION AND ACCEPTANCE 43 X K REPRESENTATIONS, CERTIFICATIONS, AND 64

X F DELIVERIES OR PERFORMANCE 44 OTHER STATEMENTS OF OFFERORS

X G CONTRACT ADMINISTRATION 45 X L INSTRS., COND., AND NOTICES TO OFFERORS 65

X H SPECIAL CONTRACT REQUIREMENTS 47 X M EVALUATION FACTORS FOR AWARD 86

OFFER (Must be fully completed by offeror) NOTE: ITEM 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

12. In compliance with the above, the undersigned agrees, if this offer is accepted within 300 calendar days (60 calendar days unless a different period is inserted by the offer) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See section I, Clause No 52.232-8)

10 CALENDAR

DAYS

20 CALENDAR

DAYS

30 CALENDAR DAYS

CALENDAR DAYS

14. ACKNOWLEDGMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE

(The offeror acknowledges receipt of amendments to the solicitation for offerors and related documents numbered and dated.

15A. NAME CODE FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED

AND

ADDRESS

OF

OFFEROR

CAGE CODE-

TO SIGN OFFER (Type or print)

FAX #

15B. TELEPHONE NO. (Include area code)

15C. CHECK IF REMITTANCE ADDRESS

[ ] IS DIFFERENT FROM ABOVE - ENTER

SUCH ADDRESS IN SCHEDULE

17. SIGNATURE

18. OFFER DATE

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEM

NUMBERED

20. AMOUNT (EST)

21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

[ ] 10 U.S.C. 2304(c)( ) [ ] 41 U.S.C. 253(c)( ) 23. SUBMIT INVOICES TO ADDRESS SHOWN IN >

(4 copies unless otherwise specified)

ITEM

24. ADMINISTRATION BY (If other than Item 7) CODE

25. PAYMENT WILL BE MADE BY CODE

26. NAME OF CONTRACTING OFFICER (Type of print)

27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

SP0600-00-R-0009 PAGE 8 OF 89

SECTION B

Supplies or Services and Prices/Costs

B.1 Clauses and Provisions Clauses and provisions from the Federal Acquisition Regulation (FAR) and its supplements are incorporated in this document by reference and in full text. Those incorporated by reference have the same force and effect as if they were given in full text.

B.2 Scope and Purpose B.2.1 General B.2.1.1 SCOPE: The Government seeks offerors to assume ownership of the utility system(s) and infrastructure specified in Section B.3 (the “system(s)” or “utility system(s)”), and as the new owner, to operate and maintain the systems and provide utility services to the Government. The Offeror shall furnish all necessary labor, management, supervision, permits, equipment, supplies, materials, transportation, and any other incidental items or services required for the complete ownership of and provision of utility services via these utility systems, including operation, maintenance, repair, upgrade, and improvement of the systems.

Assumption of ownership and provision of utility services shall be performed in accordance with all terms, conditions, and special contract requirements, specifications, attachments, and drawings contained in this solicitation or incorporated by reference.

Offerors are not required to offer on all of the utility systems specified in B.3. Offers may be submitted on individual system(s) or on groups of systems on an all or none basis. For all offers, whether grouped or not, the Offeror shall provide a separate price schedule for each contract line item. Offers on grouped systems that do not include a separate price schedule for each line item will not be considered for award. For purposes of economic comparison required by 10 U.S.C. §2688, each system will be analyzed separately. Offerors are advised that if any individual system within a grouped offer does not satisfy the economic criteria for award that grouped offer will not be considered for award.

B.2.1.2 DURATION: The period of performance is anticipated to be 50 years from the contract start date, provided that the Government finds that a 50 year period is cost effective pursuant to 10 U.S.C. §2688(d)(2).

B.2.1.3 TYPE OF CONTRACT: The Government contemplates award of either a Regulated Tariff, Firm-Fixed Price, Fixed-Price with Economic Price Adjustment, or Fixed-Price with Prospective Price Redetermination contract resulting from this solicitation.

(FAR 52.216-1)

B.2.2 Statutory Directive The sale of the utility system is authorized by and conducted under 10 U.S.C § 2688. The sale of the utility system is not an acquisition and therefore is not subject to the FAR and its supplements. A copy of 10 U.S.C. § 2688 is provided as Attachment J45 to this Request for Proposals (RFP). The purchase of utility services is an acquisition and will be governed by the FAR and its applicable supplements.

SP0600-00-R-0009 PAGE 9 OF 89

B.2.3 Program Goal The desired goal of this transaction is to transfer all right, title, and interest of the United States in and to the utility systems. Consequently, the United States will retain no reversionary interests in the utility system sold, other than the terms regarding the repurchase option and rights of access. The sale will be documented by the Bill of Sale, see Attachment J42 to this RFP. The utility system being sold includes all equipment, fixtures, structures, and other improvements utilized in connection with the utility system, which will be more specifically described in the Bill of Sale. The divestiture will not include the real property upon, under, or around the utility system. The utility system being sold is as identified in the Bill of Sale and does not include any other property. In addition to the sale of the utility system identified in the Bill of Sale, the Government will also acquire utility services from the transferee.

Acquisition of utility services will be conducted in accordance with the FAR and its applicable supplements and as set forth in this RFP. Regardless of the length of the utility services contract, the sale of the utility system is in perpetuity.

B.2.4 Notices and Reservations B.2.4.1 The Government will only acquire utility services if it sells the utility systems. It can only sell the utility systems if it determines that (1) the long-term economic benefit of the conveyance to the United States exceeds the long-term economic cost of the conveyance to the United States, and (2) the conveyance will reduce the long-term costs of the United States for utility services provided by the utility system concerned.

Award, if at all, will only be made by the duly authorized execution of the utility services contract and this contract will be contingent upon the actual conveyance of the system. If for any reason conveyance does not occur, the Government’s termination liability will be limited to transition costs.

B.2.4.2 The sale of the utility systems is not governed by the FAR, the Federal Property and Administrative Services Act of 1949, or any of their implementing regulations. The Government may choose to adopt and adapt for use in the sale the processes and methods typically utilized in those laws and regulations but, by doing so, is not thereby subjecting the sale to those laws and regulations. The purchase of utility services is an acquisition and will be governed by the FAR and its applicable supplements.

B.2.4.3 The Government reserves the right to make no award to any Offeror. If it does make award, the Government does not guarantee renewal of the utility services contract at the end of the contract period.

B.2.4.4 The property being sold in this action will be as described in the Section J utility specific attachments of the solicitation. Any proposal that offers an alternative description of the property being sold may be deemed technically unacceptable.

B.2.4.5 OFFERORS REQUESTING INFORMATION REGARDING THIS SOLICITATION SHALL

CONTACT THE CONTRACTING OFFICER ONLY. CONTACTS TO OTHER GOVERNMENT

PERSONNEL OR NON-GOVERNMENT ADVISORS ARE PROHIBITED. The Contracting Officer or his/her representatives are the only persons authorized to contact offerors, and the Contracting Officer is the only person authorized to release information regarding an ongoing Source Selection. Refer questions or communications concerning this solicitation directly to the Contracting Officer noted in Block 8 of SF 33. (E-mail is the preferred method.)

B.2.4.6 Facsimile offers will not be accepted. The Government encourages alternative proposals that add value when compared with the requirements in the RFP. Please refer to Section L, Alternate Proposals and Exceptions to Terms and Conditions, for more information.

SP0600-00-R-0009 PAGE 10 OF 89

B.2.4.7 Copies of the solicitation are available on the DESC web site at http://www.desc.dla.mil/DCM/DCMPage.asp?pageid=246. Maps and other technical data will be made available to Offerors in the Technical Libraries.

B.2.4.8 Offerors are required to submit Technical Proposal, Cost Proposal, Past Performance, and Contract Documentation as outlined in Section L of the solicitation. Offerors are also required to submit a fully completed SF 33. Offerors must acknowledge receipt and acceptance of all amendments to the solicitation. In accordance with Section L, Alternate Proposals and Exceptions to Terms and Conditions, any exceptions must be stated with specificity. This may be done by both signing and returning the amendment immediately after issuance, or by written acknowledgment of receipt and acceptance as part of the proposal submission package.

B.2.4.9 PRE-PROPOSAL CONFERENCE: A pre-proposal conference will be held on or about January 31, 2000. Specific information regarding this conference will be provided at the following DESC web site:

http://www.desc.dla.mil/DCM/DCMPage.asp?pageid=246 or by contacting Kimberly Binns at (703) 767-9653 or Laurie Carlson at (703) 767- 8127.

In order to make the conference as productive as possible, Offerors are requested to submit any questions in writing (electronic mail is preferred) at least two working days in advance of the conference to:

Defense Energy Support Center ATTN: Kimberly Binns

8725 John J. Kingman Road, Suite 3830 Fort Belvoir, VA 22060-6222

E-mail: kimberly.binns@dla.mil Phone: (703) 767-9653 Fax: (703) 767-2382

B.2.4.10 SMALL BUSINESS OFFICE: For questions regarding small business matters, contact Ms. Lula Manley at (703) 767-9400 or 1-800-523-2601.

B.2.4.11 SMALL BUSINESS SUBCONTRACTING: Information on potential small business subcontractors can be found at the following website maintained by the Small Business Administration:

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

B.2.5 Selection of a Contractor Selection of a Contractor will be based on a best value determination consistent with the evaluation factors described in Section M, Evaluation Factors for Award. Pursuant to the provisions of Section L, Information to Offerors, and FAR 52.215-1, the Government may evaluate and award without discussions. However, the Government reserves the right to conduct discussions if determined necessary. Therefore, Offerors are encouraged to submit their best offer as their initial offer.

SP0600-00-R-0009 PAGE 11 OF 89

B.3 Systems to be Privatized The utility systems shown in Schedule A, represent the utility systems included in this solicitation for privatization:

SCHEDULE A

Utility System

Installation Utility System

Laughlin AFB, Texas Electric

B.4 Price Proposal Offerors must complete Price Schedules and accompanying Price Schedule Data Sheets that are consistent within the pricing methodology they propose:

Proposal Section Price Schedule Price Schedule Data Sheets

Regulated Tariff Rate (Includes Special Contracts) B.4.1 B1 Schedules 1 & 2

(If separately identified in tariff)

Schedules 3, 4, and 5

Firm-Fixed-Price B.4.2 B2 Schedules 1, 2, 3, 4, 5

Fixed-Price with Economic Price Adjustment B.4.3 B3 Schedules 1, 2, 3, 4, 5

Fixed-Price with Prospective Price Redetermination B.4.4 B4 Schedules 1, 2, 3, 4, 5

SP0600-00-R-0009 PAGE 12 OF 89

B.4.1 Regulated Tariff Rate Proposal Available to offerors proposing regulated rates. Offerors are encouraged to provide service in accordance with their standard methods of service and standard service practices. It is acceptable for regulated utilities to submit an offer contingent upon regulatory approval, provided a proposed timeframe for approval is provided.

SCHEDULE B-1 REGULATED TARIFF a Payment by the Government for Utility Service

Laughlin AFB, Texas

Utility Systema: ___________________

CLINs

Supplies/Services

Tariff/Schedule/Rate

Applicable Tariff(s)a (See B.5.1)

Monthly Credit as Payment for Purchase Price (see B.5.2).

$______________ Monthly Credit

______________ # months

_______________ Interest Rate

TOTAL FOR CLIN 0001

Initial System Deficiency Corrections / Connection Charges b (See B.5.3 and B.7.4 (Schedule 3). This amount should not be included in the price offered for CLIN 0001.)

$ Varies – See Schedule 3

Recoverable Portion of Purchase Price b (See B.5.4 and B.7.5 (Schedule 4). This amount should not be included in

See Schedule 4

Transition Period (See B.5.5 and B.7.4 (Schedule 3). This amount should not be included in a Utility system to be filled in by the Offeror. A B-1 must be completed for each utility system offered. Utility systems are shown in Schedule A paragraph B.3, Systems to be Privatized. Offerors shall provide a comprehensive description of proposed tariffs in their Price Proposals. See B.5.1.

b CLINs 0002 and 0003 are required only if the tariff provides for separate identification of initial system deficiency corrections, connection charges, and the recoverable portion of the purchase price. If separate identification is not provided, it will be assumed the tariff rate includes these costs.

NOTE:

The Purchase Price, Recoverable Portion of the Purchase Price, interest rate and amortization period are proposed by the Offeror.

SP0600-00-R-0009 PAGE 13 OF 89

B.4.2 Firm-Fixed Price Proposal

SCHEDULE B-2

Utility Systema: ____________________

CLINS

SUPPLIES/SERVICES

MONTHLY SERVICE

CREDIT/CHARGE

Utility Service Charge (see B.6.1 and B.7.2) The Contractor shall provide utility service in accordance with Section C, Descriptions, Specifications, and Work Statement.b

Fixed Term (Months): _________________

Monthly Credit as Payment for Purchase Price. (see B.6.2)

$______________ Monthly Credit

_______________ # of months

TOTAL FOR CLIN 0001

Initial System Deficiency Corrections / Connection Charges (See B.6.3 and B.7.4 (Schedule 3). This amount should not be included in

Recoverable Portion of Purchase Price (See B.6.4 and B.7.5 (Schedule 4). This amount should not be included in

(See B.6.5 and B.7.4 (Schedule 3). This amount should not be included in a Utility system to be filled in by the Offeror. A B-2 must be completed for each utility system offered. Utility systems are shown in Schedule A paragraph B.3, Systems to be Privatized.

b The Offeror should enter the Utility Service Charge, as computed in Schedule 1 (see B.7.2).

NOTE:

The Purchase Price, Recoverable Portion of the Purchase Price, interest rate and amortization period are proposed by the Offeror.

SP0600-00-R-0009 PAGE 14 OF 89

B.4.3 Fixed-Price Economic Price Adjustment Proposal

SCHEDULE B-3

The Contractor shall provide utility service in accordance with Section C, Descriptions, Specifications, and Work Statement.b

INDEX FOR ESCALATION (Year 1 THROUGH Year N)

Internet Location of Index

Adjustment Methodology (e.g. Annual or Monthly)

TOTAL FOR CLIN 0001:

(See B.6.3 and B.7.4 (Schedule 3). This amount should not be included in the price offered for CLIN 0001.)

(See B.6.4 and B.7.5 (Schedule 4). This amount should not be included in the price offered for CLIN 0001.)

(See B.6.5 and B.7.4 (Schedule 3). This amount should not be included in a Utility system to be filled in by the Offeror. A B-3 must be completed for each utility system offered. Utility systems are shown in Schedule A paragraph B.3, Systems to be Privatized.

b The Offeror should enter the Utility Service Charge, as computed in Schedule 1 (see B.7.2). In their Price Proposals, offerors shall provide a thorough explanation of the price index they propose and describe their proposed methodology for adjusting prices. (see B.6.7, Economic Price Adjustment Index Methodology).

NOTE:

The Purchase Price, Recoverable Portion of the Purchase Price, interest rate and amortization period are proposed by the Offeror.

SP0600-00-R-0009 PAGE 15 OF 89

B.4.4 Fixed-Price with Prospective Price Redetermination Proposal

SCHEDULE B-4

The Contractor shall provide utility service in accordance with Section C, Descriptions, Specifications, and Work Statement.b

TOTAL FOR CLIN 0001:

(See B.6.3 and B.7.4 (Schedule 3). This amount should not be included in the price offered for CLIN 0001.)

(See B.6.4 and B.7.5 (Schedule 4). This amount should not be

(See B.6.5 and B.7.4 (Schedule 3). This amount should not be a Utility system to be filled in by the Offeror. A B-4 must be completed for each utility system offered. Utility systems are shown in Schedule A paragraph B.3, Systems to be Privatized.

b The Offeror should enter the Utility Service Charge, as computed in Schedule 1 (see B.7.2).

NOTE:

The Purchase Price, Recoverable Portion of the Purchase Price, interest rate and amortization period are proposed by the Offeror.

SP0600-00-R-0009 PAGE 16 OF 89

B.5 Service Charges for Schedule B-1 B.5.1 CLIN 0001: Applicable Tariff(s) Offerors proposing tariff rate offers shall include a comprehensive description of the tariff in their price proposal. The Offeror shall propose a tariff rate or rates no less favorable than that offered to similarly situated utility customers. The Offeror shall provide an explanation of the tariff, identify the buildings to which it applies, and identify any assumptions regarding service quantity and quality. The Offeror shall also describe the regulatory process, if any, which will govern future rate changes. The total monthly price will be the Applicable Tariff(s) less the Monthly Credit as Payment for Purchase Price, as defined in the following paragraph.

B.5.2 CLIN 0001: Monthly Credit as Payment for Purchase Price The monthly credit is the monthly portion of the purchase price that will be credited to the Government over the number of months proposed by the offeror. The purchase price is the product of the monthly credit (without interest) multiplied by the number of months the Government will receive the credit (CLIN 0001). The credit will be applied to the applicable tariff, as defined in CLIN 0001.

B.5.3 CLIN 0002: Initial System Deficiency Corrections/Connection Charges Initial System Deficiency Corrections (ISDC)/Connection Charges are all nonrecurring costs to be paid by the Government to the contractor. These nonrecurring costs include costs required to bring the system up to industry/regulatory standards and costs for new connections/disconnections to be accomplished during the transition period. See footnote (b) on Schedule B-1.

The following applies if ISDCs/connection charges are priced separately from the tariff rate. The requirement to perform an ISDC/Connection may originate from either a Government identified requirement, in which case the project will be listed in the relevant Utility Specific Attachment in Section J of this solicitation, or as a result of the Offeror’s determination that the ISDC/Connection is necessary to meet legally applicable regulatory requirements, or to achieve the standards typically maintained by the Offeror on its utility systems. The Offeror must provide rationale to support any projects the Offeror proposes.

The Offeror shall provide price information for ISDCs/Connections. Information to support the price proposed for ISDCs/Connections shall include project name, the interest rate, total ISDC project cost, the first full month project will be put into service, the amortization period, and the monthly charge associated with each ISDC/connection. This information shall be provided in Schedule 3 (See B.7.4).

If not encompassed in a tariff rate, the price of each ISDC proposed by the Offeror in Schedule 3 of the Price Proposal will be added to the Utility Service Charge, for the number of months indicated, when the ISDC is put in useful service.

The price for each ISDC/Connection is fixed. The price for each ISDC/Connection will be amortized over the term proposed by the Offeror in the Price Proposal. With every monthly invoice that includes a request for payment for an Initial System Deficiency Correction identified in Schedule 3, the Contractor shall submit an amortization schedule. The amortization schedule shall specify for each ISDC the principal and interest components of each monthly payment the number of the payment (of the total payments required), and the remaining principal balance.

B.5.4 CLIN 0003: Recoverable Portion of the Purchase Price See footnote (b) on Schedule B-1. The recoverable portion of the utility system purchase price will be listed in Schedule 4 (See B.7.5) for the relevant utility system. The recoverable portion of the utility system purchase

SP0600-00-R-0009 PAGE 17 OF 89

price will be added to the Utility Service Charge for the relevant utility system. The recoverable portion of the purchase price will be recovered in accordance with the amount and number of months agreed to by the parties

B.5.5 CLIN 0004: Transition Period The Offeror shall provide price information for the Transition Period in accordance with Section C, Transition Plan. The information to support the price proposed for the Transition Period shall include all costs associated with the Transition Plan. The Government agrees to pay for the Transition Period with the method proposed by the Offeror and accepted by the Government. This information shall be provided in Schedule 3 (See B.7.4).

B.6 Service Charges for Schedules B-2, B-3, and B-4 B.6.1 CLIN 0001 – Utility Service Charge The Utility Service Charge is the fully built up monthly charge to the Government for provision of utility services, including operations and maintenance and renewals and replacements (Schedules 1-2)(see B.7.2 and B.7.3).

Note for Schedule B-4 Offers: Prices proposed for CLIN 0001 identified in Schedules 1-2 shall be based on expected price levels during the first two years of operation. The effect of price inflation on costs incurred in years subsequent to the first 2 years of operation will be considered as part of the price redetermination process defined in Section I, FAR 52.216-5: Price Redetermination - Prospective (Oct 1997).

B.6.2 CLIN 0001: Monthly Credit as Payment for Purchase Price The monthly credit is the monthly portion of the purchase price that will be credited to the Government over the number of months proposed by the offeror. The purchase price is the product of the monthly credit (without interest) multiplied by the number of months the Government will receive the credit (CLIN 0001). The credit will be applied to the Utility Service Charge, as defined in CLIN 0001.

B.6.3 CLIN 0002: Initial System Deficiency Corrections / Connection Charges Initial System Deficiency Corrections (ISDC)/Connection Charges are all nonrecurring costs to be paid by the Government to the contractor. These nonrecurring costs include costs required to bring the system up to industry/regulatory standards and costs for new connections/disconnections to be accomplished during the transition period. The requirement to perform an ISDC may originate from either a Government identified requirement, in which case the project will be listed in the relevant Utility Specific Attachment in Section J of this solicitation, or as a result of the Offeror’s determination that the ISDC/Connection is necessary to meet legally applicable regulatory requirements, or to achieve the standards typically maintained by the Offeror on its utility systems. The Offeror must provide rationale to support any projects the Offeror proposes.

The price for each ISDC/Connection is fixed. The price for each ISDC/Connection will be amortized over the term proposed by the Offeror in the Price Proposal. With every monthly invoice that includes a request for payment for an ISDC identified in Schedule 3, the Contractor shall submit an amortization schedule. The amortization schedule shall specify for each ISDC the principal and interest components of each monthly payment the number of the payment (of the total payments required), and the remaining principal balance.

The Government may make a lump sum payment for any or all capital investment costs that would normally be recovered through CLIN 0002. Lump sum payments, minus prepayment expenses permitted under the FAR, will reduce the remaining unpaid principal in the amortization schedule established for CLIN 0002. The amortization schedule will be recalculated based on the new, reduced principal amount amortized over the number of months remaining in the original amortization schedule. The interest rate used in the recalculated amortization will be the same as that used in the original amortization schedule.

B.6.3.1 Accounting for System Deficiency Corrections/Upgrades/Connection Charges B.6.3.1.1 Initial System Deficiency Corrections/Connections

SP0600-00-R-0009 PAGE 18 OF 89

The price for each Initial System Deficiency Correction/Connection is fixed and is not subject to renegotiation under the clause referenced in Section I, FAR 52.216-5: Price Redetermination - Prospective (Oct 1997). The price for each ISDC/connection will be amortized as proposed by the offeror in Schedule 3 of the Price Proposal, will start the month after the ISDC/connection is put in useful service, and may reflect principal and interest. With every monthly invoice that includes a request for payment for an ISDC/connection identified in Schedule 3, the Contractor shall submit an amortization schedule. The amortization schedule shall specify for each ISDC the additional monthly payment to be included in addition to the Utility Service Charge and the number of the payment (of the total payments required).

B.6.3.1.2 Future System Deficiency Corrections/Upgrades Future System Deficiency Corrections (SDCs)/upgrades for which the government agrees to pay in accordance with Section C, SDCs/Upgrades/Connections and Renewals and Replacements, will be in addition to the Utility Service Charge for the number of months agreed upon when the SDC/Upgrade is put in useful service. With every monthly invoice that includes a request for payment for such an SDC/Upgrade, the contractor will include an amortization schedule. The amortization schedule shall specify for each SDC/Upgrade the additional monthly payment included in addition to the Utility Service Charge and the number of the payment (of the total payments required). For regulated utilities submitting pricing using Schedule B-1, additional payments will be reflected in changes to the tariff or special contract rate in CLIN 0002, Schedule B-1.

If new SDCs/Upgrades are required as a result of a change in service requirements, the monthly service charge may be re-negotiated, at any time, in accordance with FAR 52.243-1, Changes -Fixed-Price-Alt 1 or FAR 52.241-7 Changes in Rates or Terms and Conditions of Service for Regulated Services as applicable.

B.6.4 CLIN 0003: Recoverable Portion of the Purchase Price The recoverable portion of the utility system purchase price will be listed in Schedule 4 (see B.7.5) for the relevant utility system. The recoverable portion of the utility system purchase price will be in addition to the Utility Service Charge or the Monthly Service Charge for the relevant utility system. The recoverable portion of the purchase price will be recovered in accordance with the amount and number of months agreed to by the parties.

B.6.5 CLIN 0004: Transition Period The Offeror shall provide price information for the Transition Period in accordance with Section C, Transition Plan. The information to support the price proposed for the Transition Period shall include all costs associated with the Transition Plan. The Government agrees to pay for the Transition Period with the method proposed by the Offeror and accepted by the Government. This information shall be provided in Schedule 3 (See B.7.4).

B.6.6 Total Monthly Charges The total monthly charge will be the sum of the Utility Service charge, the Initial System Deficiency Corrections, the Connections, the recoverable portion of the purchase price and the transition period costs minus the credit for payment of the purchase price. The Utility Service Charge will be a monthly charge for the duration of the contract. All other charges/credits will be monthly charges/credits only for the duration of the amortization period proposed by the offeror.

B.6.7. Economic Price Adjustment Index Methodology In any offer proposing a Fixed-Price with Economic Price Adjustment, offerors shall specify the index or indices they propose as a price adjustment mechanism. Offerors shall explain why the index proposed was selected, comprehensively describe the working of the price adjustment mechanism including the timing of adjustments and the composition of the base, and provide a sample calculation.

B.6.7.1 Review of Indices An index proposed pursuant to B.6.7 above may be replaced in the event:

SP0600-00-R-0009 PAGE 19 OF 89

A. It is discontinued or its method of derivation is altered substantially.

B. The index is published by the Federal Government and the Federal Government ceases to publish said index or changes its method of quoting prices; or

C. The index consistently and substantially fails to reflect market conditions.

B.7 Price Schedule Data Sheets B.7.1 General Please note that Schedules 1 and 2 (see B.7.2 and B.7.3) are not necessary for offerors proposing a Schedule B-1 Regulated Tariff Proposal. All other offerors must provide the following:

For purposes of comparison to the Government Should Cost Estimate (GSCE) and to facilitate price/cost realism analysis of the operations and maintenance component of the monthly service charge, the Offeror shall clearly establish a direct correlation between the price listed in Schedule 1 (see B.7.2) and the operations and maintenance plan provided in accordance with Section L, Operations and Maintenance/Quality Management Plan. The Offeror shall provide detailed pricing data for all labor (direct and indirect), materials and procurement costs, insurance, equipment, general and administrative, overhead costs, and any other cost identified by the Offeror.

Renewals and Replacements are defined in Section C, SDCs/Upgrades/Connections and Renewals and Replacements. Renewals and Replacement are investments in the utility system to renew or replace system components that fail or reach the end of their useful life. For the Renewals and Replacements component of the monthly service charge, the Offeror shall establish a 50-year schedule for renewals and replacements of major system components given the information available in this solicitation, technical library, through site visits, and other pertinent information. The 50-year schedule for renewals and replacements shall be established as shown in Schedule 2 (see B.7.3) in current dollars (see note at B.6.1). For purposes of comparison to the GSCE and to facilitate price/cost realism analysis, the Offeror shall clearly establish a direct correlation between the applicable J-section inventory, the 50-year schedule for renewals and replacements and the renewals and replacements component of the Utility Service Charge presented in Schedule 1. If the correlation includes a residual value at the end of the 50-year schedule, the Offeror shall clearly demonstrate the basis for the residual value.

B.7.2 Schedule 1 – Utility Service Charge

Component

Monthly Charge

1. Operations and Maintenance (O&M)

2. Renewals and Replacements (R&R)

Total Utility Service Charge (to be entered into CLIN 0001 for Schedules B-2, B-3, B-4)

SP0600-00-R-0009 PAGE 20 OF 89

B.7.3 Schedule 2 – Renewals and Replacements – 50 YEAR SCHEDULE Notes: For each inventory component/item listed in the applicable J-section inventory, clearly show the $ value of the planned R&R (if any) for each year 1-50

Item Size Quant Unit

Approx Year

Installed

Existing Unit

RCN

Existing Item

Service Life

First Expected

Replacement Date

New Item

New Item

Service Life

New Unit Cost

RCN

New Item

RCN

Planned R&R

Year 1 (Const $)

Planned R&R

Year XX (Const $)

Planned R&R

Year 50 (Const $)

Residual Value in Year 50

(Const $)

Total

SP0600-00-R-0009 PAGE 21 OF 89

B.7.4 Schedule 3 – Initial System Deficiency Correction(s) / Connection Charge(s)/Transition Period

Project Name

Interest Rate

Project Cost (Constant $)

First Full Month Project will Be In Service

Amortization Period (Months)

Monthly Charge

B.7.5 Schedule 4 –Recoverable Portion of Purchase Price

Item

Interest Rate

Amount

Amortization Period (Months)

Monthly Charge

Recoverable Portion of Purchase Price

SP0600-00-R-0009 PAGE 22 OF 89

B.7.6 Schedule 5 –Proposal 50 Year Charges to the Government, Constant 20XX$ Notes:

1. Offerors shall provide for Schedules B-1, B-2, B-3, and B-4

2. Contract year--Fill in for each year (1-50)

Contract Items

Operations & maintenance less taxes and G&A

Renewals & Replacement less taxes and G&A

Initial System Deficiency

Corrections/ Connections

Transition Cost

Other Costs &

Credits, net Total Yearly

Charge

Contract Year

Purchase Price Credit

Purchase Price

Recovery

General

Admin Schedule 1 Schedule 1 Schedule 3 Schedule 3 As applicable

Non- Federal Taxes &

Fees

Federal Income

Tax Total of Row 1 $ $ $ $ $ $ $ $ $ $ $

2 $ $ $ $ $ $ $ $ $ $ $

3 $ $ $ $ $ $ $ $ $ $ $ 4 $ $ $ $ $ $ $ $ $ $ $ 5 $ $ $ $ $ $ $ $ $ $ $ 6 $ $ $ $ $ $ $ $ $ $ $ 7 $ $ $ $ $ $ $ $ $ $ $ 8 $ $ $ $ $ $ $ $ $ $ $ 9 $ $ $ $ $ $ $ $ $ $ $ 10 $ $ $ $ $ $ $ $ $ $ $ 11 $ $ $ $ $ $ $ $ $ $ $ 12 $ $ $ $ $ $ $ $ $ $ $

XX $ $ $ $ $ $ $ $ $ $ $

XX $ $ $ $ $ $ $ $ $ $ $

XX $ $ $ $ $ $ $ $ $ $ $

XX $ $ $ $ $ $ $ $ $ $ $

XX $ $ $ $ $ $ $ $ $ $ $

48 $ $ $ $ $ $ $ $ $ $ $ 49 $ $ $ $ $ $ $ $ $ $ $ 50 $ $ $ $ $ $ $ $ $ $ $

TOTALS $ $ $ $ $ $ $ $ $ $ $

SP0600-00-R-0009 PAGE 23 OF 89

Section C

Description/Specifications/Work Statement

C.1 Precedence In accordance with FAR 52.215-8, any inconsistency in this solicitation or contract shall be resolved by giving precedence in the following order: (a) The Schedule (excluding the specifications); (b) Representations and other instructions; (c) Contract clauses appearing in the solicitation or contract; (d) Contract clauses incorporated by reference; (e) Other documents, exhibits, and attachments; and (f) The specifications.

C.2 Scope and Purpose C.2.1 General The Government is conveying the utility systems identified in this solicitation. Subsequent to the conveyance of the utility systems, the Government will acquire the corresponding utility services from the contractor as the new owner of the system. The Government is requesting proposals for the purchase of the utility systems listed in Section B.3, the conveyance of the infrastructure, and the acquisition of the identified utility services. The conveyance of the utility system and the acquisition of utility services are both subject to the terms and conditions of this solicitation. The Government will consider the purchase of commodities with the privatization offer(s) on a case-by-case basis. Offerors shall discuss and quantify to the extent practicable other possible long-term costs and benefits to the United States, especially if the conveyance affects separate contract relationships, particularly for commodities.

C.2.2 Program Goal The desired goal of the conveyance is to transfer all rights, title, and interest of the United States in and to the utility systems listed in Section B.3. The transfer of title will be accomplished at some point after contract award, provided that full transfer is the intended consequence. Utilities Privatization includes two documents: (1) the terms and condition of the contract, which includes the Right of Access; and, (2) the Bill of Sale. The Bill of Sale will be incorporated by reference into the contract. The utility system being sold includes equipment, fixtures, structures, and other improvements utilized in connection with the utility system, which will be more specifically described in the Bill of Sale. The divestiture will not include the real property upon, under, or around the utility system. The utility system being sold is as identified in the Bill of Sale and does not include any other property.

C.2.3 Utility Service Providers The Government is seeking best value utility service providers to assume ownership of Government utility system(s) identified herein and provide related utility service(s). This includes, but is not limited to, the obligation to ensure adequate and dependable utility service(s) to all facilities and equipment served.

Services provided shall comply with all applicable Federal, state, and local laws and regulations, as they may be amended from time to time, including those requirements relating to health, safety, and the environment.