RFP Minot 021209

United States Air Force, Utilities Privatization

Request for Proposal (RFP)

SP0600-09-R-0806

February 12, 2009

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MINOT AIR FORCE BASE, NORTH DAKOTA

Table of Contents

SOLICITATION/CONTRACT

UNITED STATES AIR FORCE, UTILITIES PRIVATIZATION

FEBRUARY 12, 2009TABLE OF CONTENTS

TABLE OF CONTENTS

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

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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

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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. ..49

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)

I.6.4 FAR 52.229-3 FEDERAL, STATE, AND LOCAL TAXES (APR 2003)

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

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L.2.2 Number of Awards 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 ...80 L.4.4 Subfactor 4: Operational Transition Plan

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

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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 electric, water, and wastewater utility systems located on Minot (AFB) North Dakota and infrastructure specified in Section B.3, Systems to be Privatized, (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.

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 on Minot Air Force Base (AFB), North Dakota. 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

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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. The system will be sold in an “as is, where is” condition without any warranties, representations, or obligation on the part of the Government to make any alterations, repairs, or improvements.

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.

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 http://www.desc.dla.mil/DCM/DCMPage.asp?pageid=246�

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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 March 5, 2009. 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 Caitlin Quinn at (703) 767-7657 or John Hildreth at (703) 767-8671.

In order to make the conference as productive as possible, Offerors are requested to submit any questions in writing (electronic mail is preferred) by February 27, 2009 to:

Defense Energy Support Center ATTN: Caitlin Quinn

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

E-mail: Caitlin.Quinn@dla.mil Phone: (703) 767-7657 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.

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

Minot AFB, North Dakota Electric

Minot AFB, North Dakota Water

Minot AFB, North Dakota Wastewater http://www.desc.dla.mil/DCM/DCMPage.asp?pageid=246� http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm�

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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

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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

Minot Air Force Base, North Dakota

Utility System: ________________

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.

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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.

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B.4.3 Fixed-Price Economic Price Adjustment Proposal

SCHEDULE B-3

Utility Systema: __________________

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.

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B.4.4 Fixed-Price with Prospective Price Redetermination Proposal

SCHEDULE B-4

Utility Systema: ____________________

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.

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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

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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 price for the Transition Period is fixed. 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.

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B.6.3.1 Accounting for System Deficiency Corrections/Upgrades/Connection Charges B.6.3.1.1 Initial System Deficiency Corrections/Connections 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 price for the Transition Period is fixed. 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.

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

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)

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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

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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

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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)

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 $ $ $ $ $ $ $ $ $ $ $

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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. The Contractor shall modify its service practice as necessary to accomplish such compliance.

If a change in the service requirement necessitated by compliance with later imposed/modified laws and regulations constitutes reasonable cause for an adjustment to the service charge, the charge will be adjusted 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.

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C.2.4 Utility Systems Attachments are included in Section J for the utility systems listed in Section B.3 and are herein referred to as “utility-specific attachments.” Each utility-specific attachment provides details specific to each Installation utility system and requirement. Upon contract award(s), the appropriate attachments will be included in the contract and the others will be removed.

C.2.5 Current Service Arrangement The Installations currently use government-owned facilities to provide utility services. The utility-specific attachments (Section J) describe the current service arrangement for each utility service and define specific requirements.

C.3 Requirement C.3.1 Utility Service Requirement Subject to the terms and conditions in this RFP, the Contractor shall furnish all facilities, labor, materials, tools, and equipment necessary to provide utility service.

The Contractor shall manage, control, and perform operations, maintenance, repairs, replacements, expansions, and incidentals on its utility system so as to provide reliable and dependable utility service to each Government or tenant connection within the service area (see Section C, Service Area) 24 hours each and every day. The Contractor shall be responsible for providing capital investments and all other resources required to own, maintain, and operate its utility system(s) in a safe and reliable condition, and to meet all the requirements listed herein.

The Contractor shall obtain and maintain current any and all licenses, permits, or certifications necessary to own, maintain, and operate its utility system(s). Access to the utility system will be as specified in Section C, Access to the Utility System.

C.3.2 Performance Standards Unless otherwise provided for in this contract, the Contractor shall provide utility service(s) in accordance with industry-standard construction, operations, maintenance, management, environmental, safety, and other relevant standards, that apply to similarly situated utility service providers serving customers whose service characteristics are comparable to the service characteristics of the Installation.

The Contractor shall comply with all applicable Federal, state, and local laws/regulations and Installation specific requirements as defined in the utility-specific and Site Specific attachments (Section J), in performing its duties under the contract(s). The Contractor shall identify and incorporate standards and specifications in its Operations and Maintenance/Quality Management Plan, Section C, Operations and Maintenance/Quality Management.

C.3.3 Sub- Metering The Contractor shall be responsible for reading, maintaining, and calibrating all sub-meters on the privatized utility system(s), including those additional meters identified in the utility-specific attachments (Section J) to be installed by the Contractor. Those additional sub-meters shall be installed within the transition period defined in the utility-specific attachments (Section J). The Government will use sub-meters for internal installation billing purposes and for commodity management and energy conservation purposes.

Meter reading reports shall be submitted to the recipient identified in the utility-specific attachments (Section J).

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All costs for providing, installing, reading, reporting, and maintaining the existing and additional meters shall be the responsibility of the Contractor. Contractors are encouraged to incorporate remote meter reading technology.

C.3.3.1 Future Sub-Meters The Contractor shall provide, install, read, maintain, and calibrate sub-meters requested by the Government for any purpose throughout the contract period. Installation of and responsibility for future sub-meters (not on the system at the time of sale or identified for installation as part of the service contract) may constitute reasonable cause for an initial installation charge and a service charge adjustment 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.

C.3.3.2 Sub-Meter Calibration The frequency and accuracy of sub-meter calibration shall be in accordance with the manufacturer’s recommendations and applicable regulations that govern meter calibration.

C.3.4 Energy and Water Efficiencies and Conservation The Contractor shall strive to provide energy- and water-efficient systems. The Government has an established program for conducting and implementing energy- and water-saving and conservation projects to reduce utility usage and costs. Some of these have resulted in the Government entering into long-term financing arrangements with non-government entities. The utility-specific attachments (Section J) identify any such energy- and water-savings projects that are currently in place for the specific utility system.

The Contractor agrees to take no action that will negatively impact these projects without prior approval of the Contracting Officer. Additionally, the Government reserves the ability to enter into any future energy- and water-savings projects with the goal of reducing Government costs. The Contractor will facilitate the implementation of any such future energy and water savings projects. Projects implemented by the Government that will require changes in the privatized system shall be coordinated between the parties prior to implementation.

The Contractor is encouraged to propose SDCs/Upgrades to the Government that will increase the overall efficiency of the utility system. Efficiency SDCs/Upgrades shall be proposed to the Government in accordance with Section C, SDCs/Upgrades/Connections and Renewals and Replacements. The Government may consider cost-savings sharing and incentives either through service charge adjustments or lump-sum payments.

C.3.5 Energy/Water Commodity Supply Unless otherwise stated, electric, natural gas, and water commodity supply is not included in this contract, even if water and/or electricity production facilities are included as part of the system to be conveyed.

The Government retains the right to procure or supply electricity, and/or natural gas, and/or water that will be transported on the system(s) covered by this contract from any source, including the Contractor, if the Contractor proposes to supply…